Wincanton Share Price Forecast July 2021 – Time to Buy WIN?

Shares of transportation company Wincanton (LSE: WIN) are in the green today as the company reported significant profit up on Fiscal Q1. It makes investors wonder if this is the right time to purchase WIN shares.

Wincanton – Technical Analysis

The financial statement released by Wincanton reveals that the company has a market cap of £515.146M while the total assets are worth £519.4M. The revenue of the company was £1.22B in 2020 compared to £1.20B in 2019. The market was closed on July 27 at £420 with an uptrend of 1.20%.

You can get more insight from the technical information. However, the technical indicators are torn between the buy and sell signals for WIN shares. Moving Averages like Exponential Moving Average (10)(414) and Simple Moving Average (10)(411) are pointing towards a buy action. However, Volume Weighted Moving Average (20)(430) and Simple Moving Average (20)(425) are moving towards selling. On the other side, Oscillators like Stochastic RSI Fast (3, 3, 14, 14)(58) and William Percentage Range (14)(-63) are being neutral, while MACD Level (12, 26)(-7) and Bull Bear Power (2) are pointing towards a sell action.

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Recent Developments

Established in 1925 in the United Kingdom and headquartered in Chippenham, Wincanton is a holding company that engages in the provision of supply chain solutions and logistics. It operates through two segments: Industrial and Transport, and Retail and Consumer. The Industrial and Transport Segment involves construction and transport services. And the Retail and Consumer Segment involves retail grocery, retail general merchandise, and consumer products.

Last year, on June 18, 2020, Wincanton signed a deal with WM Morrison Supermarkets. According to the contract, Wincanton took the responsibility to manage WM Morrison Supermarkets’ transport and vehicle maintenance unit functions at Bridgwater. The contract also included a transfer of over 250 employees from the existing provider to Wincanton. Both parties were to tie up to improve logistic activities for WM Morrison Supermarkets.

On May 20, 2021, Wincanton showed its preliminary result for the full FY20-21 with growth in net profit and revenue, as well as an increase in the entire dividend for this year. Net profit attributable for the second half of FY20 to equity shareholders was up at £41.3M from £38.5M in the previous year. EPS went from £3.08 to £3.29. Revenue also went up to £1.22B from £1.20. The board proposed a higher dividend due to the rise in revenue and net profit. A dividend of £1.04 was proposed up from the £0.40 per share proposed on the previous year.

As mentioned earlier, on July 7, 2021, Wincanton reported that the profit of the company for the Fiscal Q1 experienced a significant rise year over year. Thus, it cited sustained growth and several opportunities in all four sectors. The company also stated that the strong revenue performance of the second half of FY20 resumed to the first quarter of FY21. Meanwhile, Wincanton plans to hire more employees during the potential unavailability of drivers because of sector-wide pressures.

Should You Buy WIN Shares?

Before an investor decides to invest in a share, it is important to consider the risk and reward points. WIN share prices consistently went up during the first half of 2021, reaching their highest high on July 6. However, the prices started dropping after that. Moreover, a strong buy signal is not noticed from the technical information. Some of the Moving Averages are pointing towards buying and the rest are pointing towards selling. Oscillators are either pointing towards a sell action or being neutral. So, it is not quite the right time to purchase WIN shares. Observe the market for a bit more before making a move.

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