Forterra Share Price Forecast July 2021 – Time to Buy FORT?
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Shares of building products manufacturer Forterra (LSE: FORT) are in the green today after the shares went up by 1.47% in June with a 4-point change in the value. It makes investors wonder if this is the right time to invest in FORT shares.
Forterra – Technical Analysis
According to the financial statement released by Forterra, the company has a market capitalization of £667.268M while its total assets are worth £307.9M. The revenue of the company for 2020 was £291.90M compared to £380.00M in 2019. The market was closed on July 22 at £302.5 with an uptrend of 3.24%.
The technical information of FORT offers more insight. Moving Averages like Exponential Moving Average (10)(285.5), Simple Moving Average (10)(285.0), Volume Weighted Moving Average (20)(282.6), and Hull Moving Average (9)(289.3) are pointing towards a buy action. Oscillators such as Momentum (10)(28.5), MACD Level (12, 26)(3.2), and Bull Bear Power (22.8) are also pointing towards buying, while Stochastic RSI Fast (3, 3, 14, 14)(79.7) is being neutral.
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Recent Developments
In March 2021, Forterra reported a loss in its annual results of 2020, although a recovery followed in the second half of the year by dividend payments reinstated by the company. A loss of £5.6M to shareholders was also reported compared to the profit of £46.8 the company made in 2019. With a loss per share of £0.026, the EPS was £0.236.
Due to the Covid-19 pandemic, revenue also dropped to £291.90M from £380.00M in a year. However, a final dividend of £0.028 per share was declared by the board despite the loss. The company had also suspended payments in 2019 to shareholders to secure cash. During the first four months of 2021, things got a lot better for Forterra and the company experienced FY performance stronger than the previous expectations of the Board. In these four months, group sales revenues were 95% up compared to 2019. Forterra is also recovering from cost inflation.
Should You Buy FORT Shares?
From the point of view of an investor, it is important to consider the risk-reward ratio before investing in a share. Judging from Forterra’s performance this year, it is recovering from the pandemic effect rapidly and getting back to where it was in 2019 which is good news. Although recent dividends are not fully covered by the profits of the company yet and it is still difficult to interpret the company’s dividends, share prices are going up constantly. Moreover, all moving averages and most oscillators are pointing towards buying, with a few oscillators being neutral. Overall, all technical indicators are providing a strong buy signal. So, it may be a great time to purchase FORT shares.
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