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Ashtead Group Share Discussion Threads
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|Yeterday's Market Report:
Positive read across lifts Ashtead to a one-year high
Equipment rental group Ashtead climbed to its highest level in more than a year after its larger US rival United Rentals posted better-than-expected second quarter results.
On Wednesday night, United Rentals reported earnings before interest, tax, depreciation of $679m, more than 1pc ahead of consensus forecasts. The trading update also showed the first month-on-month rental rate rise in 16 months. In its wake, the US-listed stock rallied and triggered positive read across for Ashtead.
Analysts at Stifel said the key takeaway from the United Rentals trading update is “improved confidence” in the direction of rental rates in the US market. Hector Forsythe, of Stifel, said: “This has been a bear concern covering both United Rentals and Ashtead".
Meanwhile, after speaking to Ashtead, US investment bank Jefferies said the group North American brand Sunbelt remains on track to deliver its volume growth target of 10 to 15pc in 2017 thanks to US macroeconomic data supporting “continued non-residential growth” in 2016 and 2017.
The share prices of United Rentals and Ashtead are very highly correlated. In April, when United Rental lowered its revenue outlook for the year, it weighed heavily on Ashtead, despite its own positive trading update.
The FTSE 100 stock jumped to the top of the blue chip index, up 57p, or 5.1pc, to £11.85. (21/07/16)|
|Quite agree bracke, although disclosed shorts remain unchanged at 4.04% at present. I would have though it was long past time for shorters to bale out!
In the meantime, from the Tele-graph: "The key takeaway from the [United Rentals] release is improved confidence in the direction of rental rates in the US market."
Hector Forsythe, of Stifel, comments as shares in Ashtead jump to their highest level in over a year on the back of a positive read across from its larger peer United Rentals.
(see post 52457 below)|
|This "old dog" can be very vicious. Yesterday shorters were well and truly mauled. If they are still holding they will be praying for a gap fill.|
|UK equipment rental company Ashtead was the biggest riser on the FTSE 100 after a positive read-across from major US rival United Rentals which reported slightly improved quarterly results overnight.
Ashtead Group (AHT) 1,185.00p 5.05%
Glencore (GLEN) 183.65p 4.23%
Antofagasta (ANTO) 495.20p 2.55%
Burberry Group (BRBY) 1,316.00p 1.86%
..... still life in the old dog yet!|
|Good day Disco
Although AHT appear to draw the line at £11 to-day's price action shows that others do not. Nice to have a safety net at £11.
"Poor old Deutsche !!."
Indeed. They obviously don't know that AHT likes to make shorters and naysayers look silly. I have previous personal experience of that!|
|Hello bracke,Will have the latter please.Does look like the share buyback was limited to £11, so end of?.Noticed that URI was up about 15% earlier, not far off matching their underlying eps beat against forecast.Poor old Deutsche !!.DD|
|1200 provided resistance....nice round figure.
What next? Retrace to test 1155 or push on to the all time high at 1234.|
|Shares in Ashtead topped the FTSE 100 on Thursday morning as investors read across from the results of US-based sector peer United Rentals, which reported slightly improved quarterly results overnight.
With Ashtead's US-focused Sunbelt providing the bulk of group sales, it was significant that Connecticut-headquartered United Rentals retained its full year outlook, with management reaffirming revenue, operating profit, capital spending and free cash flow guidance for 2016.
Market leader United also said it was solid growth on both the east and west Coasts of the US, though conditions remain challenging in Canada.
"Based on what we saw through the mid-year, and what we hear from the field, we continue to expect our business to improve both seasonally and cyclically," United chief executive Michael Kneeland said, although acknowledging the "elevated uncertainty" about the global economy.
Analysts at Peel Hunt in London said the key observation for Ashtead was the continued momentum in its key US regions, with demand for speciality and improved rental rate guidance.
The broker confidently retained its 2017 pre-tax profit forecast of £750m, ahead of consensus £720m to reflect currency moves, with earnings per share of 97.1p.
JP Morgan Cazenove also commented on the impact for the UK group: "We would expect the commentary on the sequentially improving rental rate to be taken positively by Ashtead, reinforcing some of the more positive data points seen in recent months."
At 0945 BST Ashtead shares were up 3.9% at 1,172p, close to last year's all-time high|
|Todays rise takes the share price above the last major swing high of 1155 reached on 17/12/15.
The probability is for a retrace back to test 1155.|
|United rentals quarterly figures a bit better than expected?|
|Any ideas on what caused that big jump at open???|
It will be interesting to see how long the coil continues for. The buybacks help to limit the probability of the share price dropping very far.|
|bracke, Could the break be in either direction?|
|Dipped below £11 but immediately bought up to continue the 'coil'.
The longer the coil the bigger the break.|
|Hi Laird-if you were looking at the same article- the recommendation was to look at earning upgrades- i assumed htis meant looking at eps - but that also a forecast- if anyone knows please explain|
|If you are around Fingersxxd, could you give us your latest thoughts..Thanks|
|Peel Hunt reiterates buy and increases target from 1250 to 1350.How can Deutsche be so wrong, mind you that said I read yesterday that analysts forecasts are wrong 40% of the time (personally think it's more!), let's hope PH and the majority are in the 60% correct bracket!.DD|
|dcarn/brackeDon't know if there is a limit of £11 on the buyback. On the 30th June they only bought about 69k @ 1048, the highest price paid was only 1050.Perhaps it's the 105% spread limit on the buyback that was the limit rather than £11?.DD|
|It's interesting that Tuesday and Wednesday the share price stayed reasonably well above £11 and the volume both days was approx 1.3 million. Today the share price dropped below £11 and in came the volume to take it back above £11 for a day total volume of 2.1 million.
I posted previously that 1090 was first resistance to the 'South' and that appears the situation.
So some want to hold above £11 but AHT does not want to buy above £11....need to think about that one.|
|As things stand it appears as if they may have a ceiling of £11 on buy back shares.
That was the highest price they paid today and Monday when the last bought.
There were no purchases over the two days when i don't think the price dropped below £11.|
|SDY market cap £168m and seems to be turning the corner, expects to beat year end forecasts.Given how switched on the BoD are just don't think this buyback was one of their better moves.......but wtfdik!.On the flip side at least they are doing it when the PE is a lot lower than its average.DD|
|If UK, a previous target; Lavendon (LVD) is capitalised at £209 million. I suspect that they would have to pay more than that.
But I take your point.
I am wary of share buybacks. Seems to suggest that they do not know what to do with the money so go for an easy option. The success of buybacks is usually difficult to assess.|
|Hello bracke,Another acquisition.DD|