Funding Circle Share Discussion Threads

[hpcg] 13/6/2024 18:09

The number of shares that can be bought back was increased but there has been no announcement about increasing the cash commitment. There are still weeks worth of buy backs in the existing facility anyway.

[pre] 13/6/2024 15:13

they just got robbed as mm's took those stops; remember the company is cash rich and buy back authority was incresaed at the recent AGM so they can buy back much more (I believe an extra 50%) so that will reduce the free float and they may even throw in a special dividend with the level of cash being generated

[hpcg] 13/6/2024 15:10

Its just the (London) market. There seem to be a disproportionate number of cretinous investors, hence every week a company is taken over. On the other hand the price has moved up rapidly and pull backs towards moving averages, unwinding of overboughtness are technically useful 79, 75.75 and 70.9 are successive degrees of support, though I would be surprised if any move back into the 70s wasn't bought handily.

If we look at the move up, 80p is only a doubling; the period below 40p was short lived and low volume, even if much higher than in 2023 when there was hardly any trading. That two month period was the flush out of those that couldn't wait. April and May, and to date June, have seen decent turnover and thus a more reliable price guide.

There is some sign on level 2 that supply at 82p has dried up, but it will take a few days or more to work through those that now want out in the 80s. US news could come at any time though.

[pre] 13/6/2024 14:52

seems like a complete over reaction, some stops taken - strategic realignment of business. No doubt the buybacks will continue and growth of flexipay is a big positive, US sale in progress.

[triktrak] 13/6/2024 13:47

On Thursday, Deutsche Bank (ETR:DBKGn) adjusted its price target on Funding Circle Holdings Plc (FCH:LN) (OTC: FDCHF) shares to GBP2.10 from GBP2.50, while maintaining a Buy rating on the stock.

The revision reflects anticipated changes in the company's operations, including the transition of its U.S. segment to discontinued operations net of tax for the fiscal year 2024, ahead of a projected sale.

The firm's analyst pointed out that alongside the reclassification of the U.S. business, the estimates for Funding Circle's ongoing ventures have been updated to account for more conservative projections for UK small and medium-sized enterprise (SME) lending in the future. The analyst noted that due to the operational shift, comparisons of new and old estimates above the net profit level would not be meaningful.

The bank highlighted that Funding Circle's continued investments and the resulting high operating leverage mean that even minor adjustments in loan volumes and total income can lead to significant percentage changes in net profit and earnings per share (EPS).

Despite these adjustments, the analyst confirmed that the forecasts for fiscal years 2024 and the medium-term outlook for 2026 remain aligned with the company's own guidance for its two continuing divisions, UK loans and FlexiPay, as well as at the group level.

Funding Circle, which specializes in lending to SMEs, is undergoing strategic changes with the anticipated sale of its U.S. operations. The company's focus is shifting towards its UK loan services and FlexiPay, a payment solution designed to provide flexible financing options for businesses. The revised price target from Deutsche Bank reflects the impact of these strategic adjustments on the company's financial projections.

hxxps://uk.investing.com/news/company-news/funding-circle-target-lowered-by-deutsche-bank-reflects-us-exit-strategy-93CH-3546502

[pre] 13/6/2024 12:48

DB target 210p and look where we stand- plenty of upside from here, plenty of buybacks to come and cash rich business too. I like the fact that management are buying back stock daily and eating up the free floating shares.

[edmate] 13/6/2024 11:51

It's tanking. Interest rate woes?

[qs99] 13/6/2024 08:33

Any reason given for the cut please? Thanks

[bigbigdave] 13/6/2024 06:19

DEUTSCHE BANK RESEARCH CUTS FUNDING CIRCLE PRICE TARGET TO 210 (250) P - 'BUY'

I'd be happy with 210 :o)

[johnrxx99] 11/6/2024 08:26

Thanks BBD. The share price has held up after the markets recent sell off/profit taking.

Today's wages/employment figures neutral - I'm looking at September rate cut although we all want August.

GLA

[bigbigdave] 08/6/2024 07:35

Paul Hill and Richard Crow discussion, FCH mentioned at 20.20

[devonlad] 05/6/2024 10:02

I think hpcg wasn't quite understanding the point that you were making in htat buybacks reduce the available supply of stock thus making them in short supply rahter than having shorts on. Looks primed now for the next leg imho, over bought indicators winding out. There has been a persistent morning seller but not today in volume. Just waiting for this USA sale to go through.

[qs99] 05/6/2024 08:32

I didn't say anyone was short, more that there would be less stock around given all the buy-backs etc.

Good to see a bounce following profit taking no doubt yesterday....

DYOR

[hpcg] 01/6/2024 09:53

Squeeze of what? No one can conceivably be short.

[qs99] 01/6/2024 09:19

they said discussions progressing well. As you say, stemming losses and getting any cash is a bonus IMO....

share buybacks continuing, hoovering up smaller numbers it seems, so more & more tightly held maybe? Means any squeeze could be greater?

Roll on next week and news in "due course" about the US sale.

DYOR

[devonlad] 31/5/2024 08:22

There could be a lot of value in the USA business, especially the licence, I think they will get something more than nothing for it, possibly anyway. My guess is that a sale is priced in at zero value and removes a £10m loss, anything more than zero would be very welcome.

[johnrxx99] 31/5/2024 04:21

I suspect the US disposal will be a game of chicken as they need to get out as soon as they can to stem the flow of losses. Could the threat of closure speed it up?

[bigbigdave] 30/5/2024 16:23

Still buying back 92,652 at 88.7

[qs99] 30/5/2024 15:50

Lovely job, let's finish end of week with breaking through a quid instead....

[bigbigdave] 30/5/2024 15:42

+7.8%, what a close :o)

[devonlad] 30/5/2024 13:52

possibly, someone buying chunks, 20k 25k etc

[qs99] 30/5/2024 13:50

Well could see a quid today IMO....just spiked....DYOR

[liam1om] 30/5/2024 13:27

If they get anything for the US business it's a bonus, just need to get that loss making unit off the books.

[devonlad] 30/5/2024 13:00

Chart is a cracker QS99. Thought we would make a move for £1 yesterday but we have had a weak general market, sometimes these things get delayed but that test is on its way. A sale of the USA business will take it through that imho.

[qs99] 30/5/2024 12:49

Boom through 90p