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10 October 2019

Redmayne Bentley’s Top Trades

Below, we look at the most frequently traded shares through Redmayne Bentley over the last couple of weeks and consider why they have been so popular.
 
PERSIMMON (PSN)
Index: FTSE 100
Sector: Home Construction
Market Capitalisation: £6,348.32m

British housebuilder Persimmon has performed strongly in the face of a competitive market, with shares up 8.07% in the last month. This, coupled with a dividend yield of 11.69%, makes Persimmon an attractive proposition for investors. What is also impressive is the strength of the firm’s financials, with negligible debt on its balance sheet. This indicates that the business is running on equity funding capital, a good sign for a company with £6.9bn market capitalisation. However, Persimmon will always be subject to changes in the housing market, with the potential of a Jeremy Corbyn-led government still posing a threat to housebuilders in the industry.
 
 
EASYJET (EZJ)
Index: FTSE 250
Sector: Airlines
Market Capitalisation: £4,399.08m

Since falling out of the FTSE 100 in May 2019, easyJet has experienced an upturn in share price, recently aided by the collapse of Thomas Cook. However, with a large proportion of the airline’s revenue dependent on the UK, the impending 31st October Brexit deadline presents a number of challenges to easyJet. With UK consumers concerned about the outcome, combined with the increasing threat of a recession in the Eurozone and growing environmental backlash against air travel, the future of easyJet’s share price remains unclear.
 
 
METRO BANK (MTRO)
Index: FTSE All-Share
Sector: Banks
Market Capitalisation: £356.91m

Metro Bank’s fall since reaching its all-time high in April 2018 has been severe, with shares shedding c.90% of their value in the last 18 months alone. This drop resulted from the bank’s misclassification of £900m worth of loans, miscalculating the strength of its balance sheet and being forced to ask shareholders for an extra £350m of capital in May. Consequently, investor confidence has fallen with the share price at a commensurate rate. The retail bank has since been working hard to restore faith and its share price could now be seen as a cheap buy, responding well to the 2nd October announcement that Chairman Vernon Hill would resign by the end of the year.
 
 
Top Trades is published every fortnight in Equity Insight, a newsletter written by our stockbrokers and investment managers. It provides market commentary, a focus on individual sectors, technical analysis, potential trading opportunities and share reviews.

Please note that investments and income arising from them can fall as well as rise in value and you may lose some or all the amount you have invested. Past performance and forecasts are not a reliable indicator of future results or performance. Please note that this communication is for information only and does not constitute a recommendation to buy or sell the shares of the companies mentioned.
 
Redmayne Bentley’s Top Trades
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