Ted Baker Share Price Forecast July 2021 – Time to Buy TED?

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Shares of luxury clothing retail company Ted Baker (LSE: TED) are in the red at the moment (July 26 10:35 UTC+1) as the shares are dropping continuously for the last couple of months. Investors are wondering if it is a good time to invest in TED shares.

Ted Baker – Technical Analysis

According to the financial statement released by Ted Baker, the company has a market cap of 251.437M GBX while the total assets are worth 399.258M GBX. The revenue of the company was 351.98M GBX compared to 630.48M GBX in 2019. The market is open at the moment of writing at 135.7 GBX with a downtrend of -0.37%.

The Technical information of TED offers more insight. Moving Averages such as Exponential Moving Average (20)(140.6), Simple Moving Average (20)(141.9), Volume Weighted Moving Average (20)(143.8), and Simple Moving Average (30)(142.8) are pointing towards a sell action. On the other hand, Oscillators like Stochastic RSI Fast (3, 3, 14, 14)(66.5), Williams Percent Range (14)(-63.7), Bull Bear Power (-12.7), and Ultimate Oscillator (7, 14, 28)(54.7) are being neutral.

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Recent Developments

Founded in 1998 in the United Kingdom by Raymond Stuart Kelvin, Ted Baker designs, manufactures, and distributes clothes and accessories through wholesale, retail, and licensing. The company is headquartered in London.

While the company suffered from the Covid-19 pandemic, the shares went up 3% at the beginning of 2021. In January, Ted Baker pressured around 50 staff members to work from the office during the lockdown period. The company stated that some critical business functions were needed to be done that could not be accomplished by working at home. Ted Baker shares were going up until May 2021. However, they reached their peak on May 12, at 186.5 GBX, and after that, the share prices went down rapidly.

The company refinanced by joining in its syndicate of lending banks to extend a revolving credit facility. According to this agreement, a restricted facility of £25M maturing in January 2022 and a facility of £108M maturing in September 2022 will be replaced by a new facility of £90M reducing to £80M in January 2022 until it matures in November 2023.

On June 14, Ted Baker reported an underlying loss due to the pandemic hit in 2020. The first-quarter revenue for 2021 has dropped 20% because of coronavirus restrictions. Compared to a £4.8M profit in the previous year, the company has suffered a loss of £59.2M this year ended January 30.

On July 23, the company secured a 10-year lease for its new headquarters in London. The shares of the company were noticed to rise over 1% in morning trading on the same day. It was £139.46 on Friday with a change of £1.76. However, the share price again dropped today.

Should You Buy TED Shares?

From the point of view of an investor, it is important to check both risks and rewards before purchasing a share. Ted Baker has been greatly affected by the Covid-19 pandemic. The company has suffered a huge loss this year and as mentioned earlier, the share prices are dropping for the last couple of months constantly. Technical indicators are also not giving a great signal for buying TED shares. All Moving Averages are pointing towards selling, while oscillators are being neutral. So, it does not look like this is a good time to purchase TED shares. What you need to do now is keep an eye on the share price movement and wait for a buy signal from the indicators and the market. Till then, it would be wise to not make a move.

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