Pendragon Shares Forecast August 2021 – Time to Buy PDG?
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The market of auto and truck dealerships has never been so forward-looking for risk-taking investors. Yesterday, on August 30th, the London Stock Exchange observed Pendragon Plc shares taking a not so unexpected jump when the prices of PDG went up by 167.5% right before the markets closed for the day. The company’s recent performance within the automotive retail sector caused many to see it as a not-so-popular yet significant investment option. If you are one of the thousands who are wondering whether to buy PDG shares or wait then read the following to get a clearer picture of the situation at hand.
Pendragon – technical analysis
The speciality stores of Pendragon have been around since 1989 when it was founded and operated from Nottingham headquarters. Now the company has expanded as a franchised motor car dealership with several subsidiaries throughout the United Kingdom. Pendragon’s retail operation is also present in California where the company’s main activities include (new or used) car sales, after-sale services, and part sales. The financial details of Pendragon reveal its total market capitalisation to be around £292 million and £1.39 billion worth of outstanding shares. The total debt and assets for Pendragon are at £399.6 million and £1.65 billion respectively. The company has grown according to last year’s revenue worth £2.76 billion.
Now from a technical standpoint, PDG share’s performance gives chart-following investors plenty of reasons to add it to their watchlist. Several well-known oscillators and moving averages like MACD (0.4), SMA (18.8), RSI (68.6), and EMA (19) point towards the same direction which is a strong buy price action. The technical analysis presents PDG as a definite Buy share at the moment for investors who wish to leverage the share’s surging prices to benefit their overall portfolio.
67% of all retail investor accounts lose money when trading CFDs with this provider.Recent Developments
As mentioned earlier, Pendragon might not be a well-known player active within the automotive retail sector but it sure is gaining like one. PDG shares came into the radar of expert investors in May 2021, when the company managed to lead the London Stock Exchange with its consistent 20% rise despite being a small-cap share. Afterwards, high analyst coverage became necessary to track down the causes of the price jump and discover the latent potential in Pendragon.
Back in May, market analysts deemed PDG as overvalued which is seldom a tempting feature of a “must buy” share. The doubts regarding its potential have now dispersed as the market sees a new level of high buying range from Pendragon.
Should You Buy PDG Shares?
The overall performance of PDG is based on a positive outlook in the market with shares trading above their fair value. But that is not discouraging for investors looking to buy PDG because the company’s consistent growth in revenue speaks volumes about its condition, financially.
It has been 4 months since Pendragon has given the market experts something to consider about and people are still asking themselves the same question about Pendragon as they did during May. The answer is most probably positive since PDG has shown more of an opportunity. PDG’s recent market data and its increasing valuation are two solid reasons why it should be on people’s must-buy list right now.
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