Kier Group Price Forecast July 2021 – Time to Buy KIE?
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British construction company Kier Group (LSE: KIE) has received a lot of attention from news outlets because of its considerable increase in LSE prices in recent months. The outlook for Kier Group is extremely strong with predicted revenue growth of almost 25% in the coming year. However, investors wishing to diversify should think about its future before buying shares.
Kier Group PLC – Technical Analysis
Information from Kier Group PLC’s financial statement reveals that it possesses a market cap of £564.263 million, total debts of £860.6 million and total assets worth £2.429 billion. Revenue for 2020 was at £3.42 billion with a profit margin of -7.99%. At the time of writing, KIE shares are at £132.0 with an uptrend of £1.07%.
Technical information further reveals that moving averages such as Hull Moving Average (9)(130.5), Volume Weighted Moving Average (20)(121.9) and others point towards a buy action. The majority of oscillators on the other are neutral, such as Stochastic %K (14, 3, 3)(74.1), Awesome Oscillator(11.5) and Ultimate Oscillator (7, 14, 28)(60.1).
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Recent Developments
Last month, Kier has begun using AI-driven technology from nPlan to support its bid for new assignments. According to information released by the company, the technology will aid the company in identifying where problems and delays can exist and areas where savings can be made. It is the first U.K. based organisation to use nPlan’s technology commercially to increase its bidding chances for new jobs.
In yet another turn of events, the demand from Kier’s existing shareholders has exceeded the available amount, as applications from existing shareholders totalled 110% of what will be issued. To contribute towards its £241 million equity raise, Kier has given existing shareholders the option to buy 7 new shares for every eight existing shares they own, for a total of £120.6 million. The remaining shares worth £120.6 million will be placed by institutional investors.
Should You Buy KIE Shares?
There are many reasons why it’s a good time to pick up KIE shares at the moment. Share prices remained constant at 64 GBP ever since the lowest point was set on January 4th. After fluctuating between 65 and 75 points till the end of April, the shares rocketed to GBP 120. It has increased to 128 points by the end of June.
KIE has also outpaced the UK market in 2020, which had a return of 19.4%. Analysts expect that the company will become profitable over the next three years, with its growth rate expected to outpace the rate of savings. The company indeed has a significant liquidity cushion for more than 3 years judging by the current free cash flow figures.
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