Games Workshop Share Price Forecast July 2021 – Time to Buy GAW?

Shares of the British manufacturer of miniature wargames Games Workshop Group (LSE: GAW) are in the red today as the price keeps dropping this week. Investors are wondering if it is the right time to invest in GAW shares.

Games Workshop Group – Technical Analysis

The financial statement of Games Workshop Group reveals that the company has a market cap of £3.868B while its total assets are worth £266.6M. The revenue of the company was £269.70M in 2020 compared to £256.57M in 2019. The market was closed on July 27 at £11140 with a downtrend of -5.59%.

The technical information of GAW offers more insight. Moving Averages such as Exponential Moving Average (10)(11551), Simple Moving Average (10)(11534), Volume Weighted Moving Average (20)(11536), and Simple Moving Average (20)(11561) are pointing towards a sell action. Oscillators like Momentum (10)(-490), MACD Level (12, 26)(31), and Bull Bear Power (-358) are also pointing towards selling, while Stochastic RSI Fast (3, 3, 14, 14)(58) is being neutral.

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Recent Developments

Founded in 1975 in the United Kingdom and headquartered in Nottingham, Games Workshop Group designs and manufactures miniature games and figures. The company operates through three segments: trade, online, and retail. Through the trade segment, it allows independent retailers, distributors, and agents to sell its products. The online segment consists of digital sales via external affiliates and global webs stores. The retail segment concentrates on the company’s sales through its retail stores.

At the beginning of 2021, on January 12, Games Workshop Group reported a surge in attributable profit for the H1 FY21, following a 26% rise in sales. For the half ending on November 29, 2020, attributable profit to owners increased to £73.9M or £2.24 per share compared to £47.5M or £1.45 per share in the previous half of 2020. The company’s revenue went up to £186.8M from £148.8M. Games Workshop Group declared a dividend of £0.80 per share that went down from £1 per share. The share price fell marginally at the end of trading that week.

Games Workshop Group reported on July 27, 2021, that FY21 profit jumped up as the company sales grew 31%. The attributable profit of the game maker went up to £122M from £71.3M in a year, with its EPS rising to £3.705 from £2.178. The company’s revenue also jumped to £353.2M from £269.7M. Games Workshop Group declared a total dividend of £2.35 per share in FY21, up from £1.45 per share in FY20. A total dividend of £1.85 per share was paid for the year.

Moving on to the insider transactions of the company, the biggest single sales by an insider in the last twelve months was when Nicholas Donaldson, an insider sold £778K worth of shares for £97.21 per share. It means that the sale took place slightly below the current value. Over the last year, insiders bought 739 shares for £69K. They also divested 8K shares for £778K.

Should You Buy GAW Shares?

From the point of view of an investor, it is important to consider both risk and reward points before deciding to invest in a share. According to the share price chart, GAW share price started increasing on March 8 and it reached its highest high on June 1. However, the price started falling after that and it has been dropping continuously since July 23. Moreover, technical indicators are also not giving a green signal. Moving Averages are pointing towards selling while Oscillators are either being neutral or pointing towards a sell action. So, it may not be the right time to purchase GAW shares.

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