UK stock alert

UK

CLOSING UPDATE: Prudential lifts 2.2% on firm volume 20 September 2018 21:28 BST

NEWS BITES - EUROPE

This is an end of day Alert, produced after today's United Kingdom market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

Prudential, the largest life insurance company by market capitalisation in the United Kingdom, traded on heavy volume of 1.2 times average today while the price lifted GBX38.0 (or 2.2%) to trade at GBX1,763.50. Compared with the FTSE 100 Index which rose 36.2 points (or 0.5%) in the day, this represented a relative price increase of 1.7%.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

+ Return on Equity 14.9% [12.1%]

+ Return on Assets 0.5% [0.4%]

Bullish Signals:

+ Interest cover is less leveraged at 10.3 times.

+ As per the Du Pont analysis, Return on Equity of 14.9% is better than sector average of 12.1%.

Note

Prudential today is at a discount of 9.3% to the 12-month high of GBX1,944.44 on 22 May, 2018. It is at a premium of 6.4% to the 12-month low of GBX1,658.0 on 11 Sep, 2018.

The stock has underperformed 67% of the United Kingdom market over the past 6 months.

Bearish Signals:

The negative 7.72 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

In the last three months the stock has hit a new 52-week low once.

Net profit margin has averaged 4.4% in the last 3 years. This suggests the company is less profitable with a low margin of safety.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

Price/Earnings of 19.0 [14.5]

Price to Book of 12.7 [1.8]

Dividend yield of 2.7% [5.5%]

TODAY'S ALERT

Afternoon Alert: Prudential up 5.5% in 2 days

20 September 2018 15:51 BST

Prudential PLC (L:PRU) extended its gains on Thursday, rising an additional GBX30.0 (or 1.7%) to trade at GBX1,755.50. Trading volume was 1.1 times average so far today. The shares have risen GBX91.50 (or 5.5%) over the past two trading days vs. the FTSE 100 Index which has risen 0.8% in the same period.

RECENT ALERTS

CLOSING UPDATE: Prudential lifts 3.7% on robust volume

19 September 2018 21:22 BST

Prudential, the largest life insurance company by market capitalisation in the United Kingdom, traded on heavy volume of 1.5 times average today while the price lifted GBX61.50 (or 3.7%) to trade at GBX1,725.50. Compared with the FTSE 100 Index which rose 30.9 points (or 0.4%) in the day, this represented a relative price increase of 3.3%.

Afternoon Alert: Prudential lifts 3.1%, leads Life insurance sector higher

19 September 2018 15:49 BST

Prudential PLC (L:PRU) has lifted 3.1% to trade at GBX1,716.0 vs. the Life insurance sector which strengthened 127.6 points (or 1.6%) to 8,010.6. Representing a weighting of about 40.7% of the sector, the stock accounted for 78.5% of today's gain. Trading volume was 1.5 times average so far today.

Prudential PLC (L:PRU; LON:PRU; LN:PRU)

ISIN: GB0007099541

PermID: 8589934227

Source: www.BuySellSignals.com