Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

5 shares the pros are buying and selling

Our daily roundup of trades by professional investors, featuring Brooks Macdonald, Safestay, Tatton, Superdry and Paypoint.

Click on the arrow to the right of the picture to view the slides. The arrows to the top right then allow you to move back and forth between them.

To see all the slides on the same page, click here.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Click on the arrow to the right of the picture to view the slides. The arrows to the top right then allow you to move back and forth between them.

To see all the slides on the same page, click here.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Key stats
Dividend yield 10.1%
Market capitalisation £569m
No. of shares out 68m
No. of shares floating 66m
No. of employees 638
Trading volume (10 day avg.) 0m
Turnover £214m
Profit before tax £64m
Earnings per share 62.73p
Cashflow per share 78.09p
Cash per share 67.53p

Paypoint (PAYP)

Who’s trading? Citywire AA-rated Harry Nimmo

The trade: Standard Life Aberdeen’s small-cap veteran upped his stake in corner store payments business PayPoint from just over 5% of the shares to 6.5%.

How have the shares performed? PayPoint has limped to the bottom of a four-year trading range over the last six months, sliding 22% from a June high of £10.76.

What does the company say? Following several years of contractual upheaval and the end of a government deal to deliver cash benefits, PayPoint reported a 4% gain in profit in the six months to October as it accelerated the introduction of digital terminals and take-up of its parcel collection business increased.

What’s the outlook? The news supported a repeat of the special dividend investors have become acclimatised to in recent years but analysts have not upgraded their view on profit potential since early 2017, holding it on a median price target of £10.08 and rating it a ‘buy’ on a three-to-two margin.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Key stats
Dividend yield 6%
Market capitalisation £423m
No. of shares out 82m
No. of shares floating 59m
No. of employees 3,286
Trading volume (10 day avg.) 0.4m
Turnover £872m
Profit before tax £142m
Earnings per share 63.33p
Cashflow per share 113.48p
Cash per share 92.86p

Superdry (SDRY)

Who’s trading? Derek Stuart and Andy Gray

The trade: Artemis’ veteran special situations team trimmed its stake in beleaguered high street clothing chain Superdry from just over 5% of the shares to 4.9%.

How have the shares performed? The company has plunged 72% over the last year to a price last seen in 2012 following two profit warnings in the space of two months at the end of 2019.

What does the company say? Boss Euan Sutherland has gambled on a turnaround plan based on a smaller product range and reduced reliance on heavily branded clothing.  That has yet to deliver however, and Sutherland’s job is complicated by founder and largest shareholder Julian Dunkerton’s campaign to boot him out, four years after handing the company over. 

What’s the outlook? Amid a bleak winter for UK high street retailers analysts find little to cheer about at Superdry, with eight rating it a ‘hold’ on a median price of 578p. Investec is the sole house to rate it a ‘buy’, despite cutting its earnings forecast 24% at the end of last year. 

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Key stats
Dividend yield 3.7%
Market capitalisation £109m
No. of shares out 56m
No. of shares floating 34m
No. of employees 75
Trading volume (10 day avg.) 0.2m
Turnover £16m
Profit before tax £6m
Earnings per share 4.13p
Cashflow per share 4.22p
Cash per share 19.01p

Tatton (TAMT)

Who’s trading? Citywire AAA-rated Anthony Cross & Julian Fosh

The trade: Liontrust’s UK equity stars trimmed their stake in advice and wealth management consolidator Tatton from 12% of the shares to 11.4%.

How have the shares performed? From a record high of 294p shares have dropped by a third since October as equity markets have dived.

What does the company say? One of the most voracious dealmakers in financial services, Tatton reported a 29% increase in assets to £5.7 billion last year, while half-year pre-tax profits jumped to £3.1 million, up from £560,000. Boss Paul Hogarth said he remained ‘confident of achieving further progress through the rest of the financial year’.

What’s the outlook? Asset managers, which by their very nature tend to amplify market moves, took a hammering during last year’s fear-driven equity sell off. Only two City brokers currently rate the stock, but do so on a unanimous ‘buy’, even if their combined price target has recently slipped from 310p to 295p.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Key stats
Dividend yield 3%
Market capitalisation £247m
No. of shares out 14m
No. of shares floating 11m
No. of employees 490
Trading volume (10 day avg.) 0m
Turnover £102m
Profit before tax £15m
Earnings per share 35.44p
Cashflow per share 72.41p
Cash per share 231.65p

Brooks Macdonald (BRK)

Who’s trading? Citywire AAA-rated Giles Hargreave and Eustace Santa Barbara

The trade: The Marlborough Special Situations stars slashed their stake in private client fund house Brooks Macdonald from 8.8% of the shares to 4.6%.

How have the shares performed? Having slumped from from a record £25.82 in May 2017 shares in the business have begun to climb from the three-year low of £13.67 they briefly touched last month.

What does the company say? The business last year announced a ‘renewed focus on cost discipline’ as profits slid 16% on provision against a long-term liability and a write down on ‘obsolete’ tech. It followed that up last week with news that it would cut 50 technology and administration jobs as it centralised some functions.

What’s the outlook? The long equity market boom carried Brooks, alongside many fund sector competitors, to a pitch perfect valuation. That has begun to deflate and a premium to the market which carried Brooks as much as 50% higher than the peer average in price-to-earnings terms has now evaporated.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Key stats
Dividend yield 0%
Market capitalisation £22m
No. of shares out 65m
No. of shares floating 25m
No. of employees 153
Trading volume (10 day avg.) 0m
Turnover £11m
Profit before tax £3m
Earnings per share -2.54p
Cashflow per share 2.40p
Cash per share 13.11p

Safestay (SSTY)

Who’s trading? Citywire AAA-rated James Baker

The trade: The Chelverton UK Growth fund veteran opened up a chunky stake in backpacker hostel chain Safestay, buying a 6.8% position in its shares worth £21.3 million at a price of 33p.  

How have the shares performed? Safestay changes hands at a record low 33p, after a four-year slide from a peak 74p accelerated, as a £10 million share issue at 34p near doubled the stock in circulation.

What does the company say? Launching the issue, Safestay said the cash would support its ‘double-digit’ revenue growth forecast via a range of organic and purchased opportunities. The company added locations in Vienna and Belgium last year, bringing its continental footprint to nine cities, in addition to Edinburgh, York and two locations in London.

What’s the outlook? House broker Canaccord is the only broker to offer a formal view, on a ‘buy’ rating and a 69p target, tipping a maiden profit in the 2018 calendar year. The company has rapidly expanded but has yet to see return on new beds in pricey, top-tier cities such as Barcelona.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play How Kames Property Income got Brexit-ready

How Kames Property Income got Brexit-ready

Kames Property Income co-manager Richard Peacock says the fund is positioned to withstand the widely anticipated Brexit redemption stampeded.

Play Citywire 20: John Dodd's great Artemis expedition

Citywire 20: John Dodd's great Artemis expedition

Citywire executive chair Lawrence Lever sat down with Artemis founder partner John Dodd.

Play Citywire 20: Investec's du Toit on managing the 'jerk factor'

Citywire 20: Investec's du Toit on managing the 'jerk factor'

Investec boss Hendrik du Toit believes he has become far more decisive over the last 20 years, especially when it comes to managing 'jerk' factor.

Read More
Your Business: Cover Star Club

Profile: Altor's Towry graduates on launching a family business

Profile: Altor's Towry graduates on launching a family business

Altor Wealth Management was launched on of a shared vision to form a family-style company that would charge fairly and differently.

Wealth Manager on Twitter