Bellway Share Forecast November 2021 – Time To Buy BWY?
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Shares of the UK headquartered home-builder company Bellway (LSE: BWY) are in the green today, after closing at £3168 on 16th November (10:46 GMT). As the pent-up housing demands of consumers increased unusually, the company was seen gaining doubled pretax profit compared to the previous fiscal year. The company declared a few months ago that its pretax profit was at £479.0 million in comparison to £236.7 million for 2020. Furthermore, the company reported a 35% rise in housing completions as its financial year ended July 2021. The increasing profit along with a strong and clean balance sheet of BWY has given the company a firm hold over the share market. But will Bellway be able continue moving upward? Or will the uncertain pandemic situation could cause the share price to plummet for the company? Let’s find out.
Bellway – Technical Analysis
As per the financial statement of Bellway, the market cap of the residential property development company is at £3.902B with total assets worth £4.677B. Whereas, the total revenue for the year 2020 was £2.23B and for 2019 was £3.21B.
Moving Averages such as Exponential Moving Average (10) (3196), Simple Moving Average (10) (3192), Exponential Moving Average (20) (3226) and Simple Moving Average (20) (3234) are all pointing towards selling. Oscillators such as Relative Strength Index (14) (42), Stochastic %K (14, 3, 3) (8), Commodity Channel Index (20) (−81) and Average Directional Index (14) (12) are neutral.
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Recent Developments
Bellway has been in the recovery mode ever since the pandemic struck the nation. Now, as the UK has come out of the lockdown restrictions, the suppressed housing demands of people are favouring Bellway. Although the housing business has not surpassed the pre-pandemic levels, the company announced this year that they are inching pretty close as their revenues are up by 41%.
The housing demand is booming in the UK and the company has put in their best efforts to fulfil these demands and recover from the challenges of the pandemic period. In fact, the company achieved a record high of 19,899 building plots, moving forward the total number to over 90,000 at the year-end financial period.
Furthermore, Bellway management announces that it wants to ramp up their construction by 20% in the upcoming years for the purpose of capitalising the increasing land bank. The company estimates that this move will be able to generate an underlying pretax profit of almost £1.25B out of which half will be returned to the investors.
Should I Buy BWY Shares?
The unusual buyer demand has definitely been the biggest point for Bellway shares to go up. Adding to that, the Bellway Homes Shares has also picked up momentum which struggled a bit in the month of February.
The company’s exceptional response for meeting the housing demands have only fortified its position over the share market. Also, Bellway’s estimation to garner underlying profit before tax figures will further amplify the stock prices. The current stock yields at 4% which seems to be a good stock to buy.
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