Card Factory Share Price Forecast July 2021 – Time to Buy CARD?
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Shares of greeting cards and gift items retailer Card Factory (LSE: CARD) are in the green today after the company expressed its expectations last month about not having to pay any dividends related to FY22. Right now, investors are wondering if it is the right time to pick CARD shares.
Card Factory – Technical Analysis
According to the financial statement released by Card Factory, the company has a market cap of £205.462M while its total assets are worth £532.5. The revenue of the company was £285.10M in 2020 compared to £451.50M in 2019. The market was closed on July 26 at £63.1 with an uptrend of 4.99%.
Technical information of CARD offers more insight. Moving Averages like Exponential Moving Average (10)(59.9), Simple Moving Average (10)(58.6), Volume Weighted Moving Average (20)(60.3), and Simple Moving Average (20)(60.7) are pointing towards a buy action. Oscillators such as Momentum (10)(3.3) and MACD Level (12, 26)(-1.5) are also pointing towards buying, while Stochastic RSI Fast (3, 3, 14, 14)(94.0) and Williams Percent Range (14)(-27.3) are being neutral.
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Recent Developments
Founded in 1997 in the United Kingdom by Dean Hoyle and his wife Janet and headquartered in Wakefield, Card Factory is a retailer of greeting cards and gift items. The company functions through two segments; the Card Factory segment and Getting Personal segment. The Card Factory segment retails dressing, greeting cards and gifts via a store network. The Getting Personal segment retails personalised gifts and cards online.
Card Factory reported a slight drop in store sales on May 21, five weeks after the store reopened in the UK. However, although the sales were lower compared to 2019, they were better than the earlier reopening after the first lockdowns in 2020. According to the company, online sales also exceed pre-pandemic levels even though they have dropped.
The retailer secured increased bank facilities of £225M replacing the original £200M facilities. Card Factory will use it for the company’s growth strategy in the upcoming months. It will include the capitalization of the trend of more clients switching to its online channels through the previous year. On post-lockdown trends, the company stated that customers were buying more even though they shopped in stores less frequently.
It was reported that Darcy Willson-Rymer, CEO and Director of Card Factory recently purchased shares that are worth £51K, at the rate of £0.6 per share. Since the previous year, it is the biggest insider purchase of the company shares. Insider buying is worth nothing if they buy at a lower price rate with a discount, but Card Factory shareholders are purchasing the shares at the current price.
Should You Buy CARD Shares?
From an investor’s point of view, you need to consider rewards and risks before you buy a share. Being a part of the retail trade sector of the specialty stores industry, Card Factory has suffered from the Covid-19 pandemic like other companies as well, but the company has jumped back to business pretty quick. The share prices were low at the beginning of 2021, but a huge surge was noticed during March and now insider shareholders are also going for the company shares. Moreover, as you can see from the technical information, all Moving Averages are pointing towards buying, while oscillators are either pointing towards buying as well or being neutral. So, it may be the right time to invest in CARD shares.
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