Funding Circle Share Discussion Threads

[qs99] 25/6/2024 07:48

Wonder what brokers will think of the £33m...seems a decent price IMO....views anyone?

[johnrxx99] 25/6/2024 07:47

Lisa Jacobs, Funding Circle CEO, said: “In March, I announced that we were simplifying the business by exiting the US and focusing on profitable growth in the UK business. Alongside the UK restructuring actions announced in May, we are continuing to execute against this plan with the sale of the US business to IBF. The UK business is on track to be profitable in H2, in line with our guidance. Over the medium term we expect net income growth of 15-20% CAGR with PBT margins of >15%.

[qs99] 25/6/2024 07:31

Indeed, adds to cash pile and more for cash buybacks! Get the squeeze going. DYOR

[johnrxx99] 25/6/2024 07:29

Excellent, 33 million squids.

[qs99] 25/6/2024 07:27

Boom, lovely job, and update on UK Business...DYOR

[thebears1] 25/6/2024 07:11

For £33 million

[bigbigdave] 25/6/2024 06:55

Details........



Edit: RNS confirmation this morning.

[johnrxx99] 25/6/2024 06:10

US operation disposed of. I assume no cash as not mentioned in RNS.

[johnrxx99] 19/6/2024 08:46

Could be kickback from Starling Bank issues even if not involved.

[donald pond] 17/6/2024 08:56

Fancy next leg up is imminent. 80p feels like support

[pre] 14/6/2024 11:11

Exactly, they have a target of 210p which way above the current share price so the gap has to close and buy backs are going to continue for a while yet. Just goes to show how irrational pi can be and panic sell without taking in the full facts. A field day yesterday for mms

[qs99] 14/6/2024 08:05

Agreed, the dip allows more shares to be bought! Great stuff!! DYOR

[hpcg] 13/6/2024 19:09

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 16:13

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 16:10

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 15:52

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 14:47

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 13:48

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 12:51

It's tanking. Interest rate woes?

[qs99] 13/6/2024 09:33

Any reason given for the cut please? Thanks

[bigbigdave] 13/6/2024 07:19

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

I'd be happy with 210 :o)

[johnrxx99] 11/6/2024 09:26

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 08:35

Paul Hill and Richard Crow discussion, FCH mentioned at 20.20

[devonlad] 05/6/2024 11:02

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 09:32

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