AJ Bell Share Price Forecast June 2021 – Time to Buy AJB Shares?
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Shares of stock brokerage firm AJ Bell plc (LSE: AJB) has been in the news for the past 2 months for quite a lot of reasons. AJ Bell has managed to record an impressive earnings-per-share growth of 29% over the last 3 years. Generally, a company’s share price increases if it keeps growing its earnings-per-share long enough. Currently, AJ Bell is paying out almost 62% of its profit to its shareholders, something which brings the shares into the spotlight.
AJ Bell Share Price – Technical Analysis
The financial statement for AJ Bell plc reveals that the company’s market capitalization is at £1.733 billion, with a current Price to Earnings Ratio of 37.0800 (TTM). AJ Bell plc earned £127.75 million in revenue for 2020, at a profit margin of 30.63%. The revenue for 2019 was £104.90 million.
Taking a closer look at the technical information of AJ Bell plc reveals a lot more insight. Oscillators like Awesome Oscillator(−6.8), Momentum(10)(−11.0 ), Bull Bear Power(−6.2) and MACD Level(12, 26)(−2) are pointing towards a sell action. Moving Averages reveal a sell action as well, as evident by Exponential Moving Average(10)(425.1), Simple Moving Average (20)(428.0), and Volume Weighted Moving Average(20)(429.1). AJB shares closed on June 25th at £423.4 with an uptrend of 0.43%.
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Recent Developments
AJ Bell plc announced back in May that it would be increasing its dividend. It will be 64% higher than the previous year at £0.025, which will take effect on July 2nd. Analysts expect the EPS for AJ Bell to decrease by 3.4% over the next year. The payout ratio could be as high as 75% if the dividend continues along with recent trends.
AJ Bell plc’s earnings-per-share figure has grown at an impressive rate, which is further boosted by the high level of insider ownership. Thus, you need to conduct further research on the company because of its fast growth and confident insiders. The company has also renewed a software contract with platform technology provider GBST which provides platform capabilities to power AJ Bell plc’s advised and direct to consumer channels. The company has also increased its tech spending to 17% in the 6 months to the end of March. This move is highly seen as a measure of protection against a repeat major crash that prevented their clients from trading effectively.
Should You Buy AJB Shares?
Investors will feel more secure owning the shares of a company like AJ Bell plc, whose insiders also buy shares. In this case, insiders have invested upwards of £460 million which accounts for 26% of the company. Thus, investors who are focused on growth should go for AJB because of its growth in earnings and level of insider shares. It’s a company with a consistent and stable dividend policy as opposed to several other major companies that have irregular ones.
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