Spirax-Sarco Engineering Share Price Forecast July 2021 – Time to Buy SPX?
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Shares of manufacturing company Spirax-Sarco Engineering (LSE: SPX) are in the green today as the price has been rising continuously since March 2021. It makes investors wonder if this is the right time to pick SPX shares.
Spirax-Sarco Engineering – Technical Analysis
According to the financial statement revealed by Spirax-Sarco Engineering, the company has a market cap of £11.071B while its total assets are worth £1.745B. The revenue of the company for 2020 was £1.19B compared to £1.24B in 2019. The market was closed on July 28 at £15020 with an uptrend of 2.11%.
The technical information of SPX offers more insight. Moving Averages like Exponential Moving Average (10)(14530), Simple Moving Average (10)(14478), Volume Weighted Moving Average (20)(14258), and Simple Moving Average (20)(14215) are pointing towards a buy action. On the other side, Oscillators such as Stochastic RSI Fast (3, 3, 14, 14)(79) and Williams Percent Range (14)(-6) are being neutral, while Momentum (10)(765) and MACD Level (12, 26)(363) are also pointing towards buying. Overall, 16 technical indicators are pointing towards a buy action, which is providing a strong buy signal.
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Recent Developments
Founded on June 19, 1952, in the United Kingdom and headquartered in Cheltenham, Spirax-Sarco Engineering offers industrial steam systems, niche peristaltic pumps, electrical thermal energy solutions, and associated fluid path technologies. The business is operated through three segments: Steam Specialties, Watson-Marlow, and Electric Thermal Solutions.
The company raised its dividend for 2020 by 7% on March 10, 2021, as it noticed a rise in profit due to higher operating profit and a decrease in taxation. Profit attributable to shareholders went up to £173.6M or £2.348 per share while it was £166.6M or £2.255 per share last year. A final dividend of £0.845 was proposed by the board for a full-year dividend of £1.18 per share compared to £1.10 per share in 2019.
Spirax-Sarco Engineering stated on May 12, 2021, that the organic sales of the company have surpassed its global industrial production during the first four months of the year. The global industrial production has also expanded 7.4% by the time. The operating profit margin during these months was higher than predicted due to higher operational gearing and strong sales growth. As stated by the company, it expects a headwind currency effect on a profit of over 4% and sales of less than 4% in the full year.
On June 17, 2021, Spirax-Sarco Engineering updated its sustainability strategy with the goal of achieving net-zero scope 1 and 2 greenhouse gas emissions before 2030. The company also wishes to deliver a 10% biodiversity net gain from direct operations, increase product sales with assessable sustainability benefits, and send zero waste to landfills before 2025. Moreover, the manufacturing company aims to create a £5M fund for supporting inclusive access to education.
Should You Buy SPX Shares?
From an investor’s point of view, it is important to consider all risks and rewards of purchasing a share before going for it. As mentioned earlier, Spirax-Sarco Engineering has been doing great in business and profits are surpassing expectations. The share price has also been increasing continuously for the last few months, which is good news for investors. Moreover, technical indicators are offering a strong buy signal at the moment. All Moving Averages are pointing towards buying, while Oscillators are either pointing towards buying as well or being neutral. So, it seems to be the right time to buy shares for higher returns in future.
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