UK stock alert

UK

CLOSING UPDATE: Prudential lifts 2.9% on high volume 21 September 2018 21:20 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 2.4 times average today while the price lifted GBX51.0 (or 2.9%) to trade at GBX1,814.50. Compared with the FTSE 100 Index which rose 122.9 points (or 1.7%) in the day, this represented a relative price increase of 1.2%.

Technical indicators complementing today's significant uptrend:

+ The positive 1.23 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ The price jumped 6.4% in the last week and climbed 5.1% in the last month.

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%]

Other Bullish Signals include:

+ 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 6.7% to the 12-month high of GBX1,944.44 on 22 May, 2018. It is at a premium of 9.4% to the 12-month low of GBX1,658.0 on 11 Sep, 2018.

The stock has underperformed 63% of the United Kingdom market over the past 6 months.

Bearish Signals:

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 19.5 [14.8]

Price to Book of 13.1 [1.9]

Dividend yield of 2.6% [5.2%]

TODAY'S ALERTS

Afternoon Alert: Prudential lifts 2.6% - outperforming 92% of stocks

21 September 2018 15:51 BST

Prudential PLC (L:PRU) has lifted GBX46.0 (or 2.6%) today to trade at GBX1,809.50 and has outperformed 92% of the market in the past week. A price rise combined with a high relative strength is a bullish signal.

Morning Alert: Prudential lifts 2.1%, leads Life insurance sector higher

21 September 2018 11:02 BST

Prudential PLC (L:PRU) has lifted 2.1% to trade at GBX1,800.0 vs. the Life insurance sector which strengthened 119.1 points (or 1.5%) to 8,281.7. Representing a weighting of about 41.3% of the sector, the stock accounted for 58.5% of today's gain. The shares have outperformed 90% of the market in the past week. Trading volume was 1.5 times average so far today.

RECENT ALERTS

CLOSING UPDATE: Prudential lifts 2.2% on firm volume

20 September 2018 21:28 BST

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%.

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.

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

ISIN: GB0007099541

PermID: 8589934227

Source: www.BuySellSignals.com