Barratt Developments Share Price Forecast July 2021 – Time to Buy BDEV?
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United Kingdom-based residential property development company Barratt Developments PLC (LSE: BDEV) has been in the news this past week after the company announced the appointment of a new Executive Director and Chief Financial Officer, Mike Scott. Although the company hasn’t announced an official joining date for Scott, the market has reacted strongly to these developments.
Barratt Developments PLC – Technical Analysis
Barratt Developments PLC’s financial statement indicates that its market capitalisation of £7.178 billion and it is total assets are worth £7.058 billion. The revenue for 2020 decreased significantly from 2019, which is down to £3.42 billion compared to the previous year’s £4.76 billion. BDEV shares closed on July 9th at £705.8 with an uptrend of 2.47%.
Moving over to the technical side, oscillators for Barratt Developments PLC such as Stochastic RSI Fast (3, 3, 14, 14)(61.9), Williams Percent Range (14)(−53.4), Bull Bear Power(−22.4) and Ultimate Oscillator (7, 14, 28)(46.0) are pointing towards a neutral action. On the other hand, most of the moving averages such as Exponential Moving Average (10)(707.8), Simple Moving Average (10)(707.3), Exponential Moving Average (20)(714.5), Simple Moving Average (20)( 711.1) and Exponential Moving Average (30)(721.6) are pointing towards selling.
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Recent Developments
As mentioned before, Barratt Developments PLC has recently announced the appointment of Mike Scott, former Chief Financial Officer of Countryside Properties PLC, as the company’s new Executive Director and Chief Financial Officer. He will replace Jessica White, while temporary responsibility for finance function will fall upon Barratt Group Chief Executive David Thomas. Thomas has previously held the role of Barratt Chief Financial Officer till July 2015.
In June, BDEV shares worked their way back to pre-Corona levels. The shares experienced a 500 point drop on average in 2020, which is down 250 points from 2019’s second half. In November 2020, BDEV shares hit 600 points, remaining stable for the next 4 months. The shares hit 700 GBP in March 2021, making it the highest long-term value the shares have experienced in the last 5 years.
Should You Buy BDEV Shares?
The market is concerned about a cooling U.K. property market shortly. Investors should thus look at the company’s weekly average private reservations per active outlet. The company’s future prospects will be high if it continues to grow its reservation rate from 2020 as well as pre-pandemic levels. Investors should also keep an eye out for the company’s comments about updates to its legacy properties. Investors should be worried if total costs exceed the current level at around £163 million.
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