News

The worst that could be over for The Hut Group by Matt Molding


The worst may be over for Hut Group, which has been in a downward spiral since a debit report sent its shares crashing.










The worst may be over for The Hut Group, which has been in a downward spiral since a debit report sent its shares crashing.

The Manchester-based group, which sells clothes, makeup and protein shakes online, is worth £2.2 billion, after hitting £9.8 billion when shares peaked at nearly 800 pence in January.

Investment service The Analyst has highlighted what it believes is Ingenuity’s overvaluation of THG’s technology platform, an essential part of the business, that has sent the shares down.

In his attempt to stem losses, company founder Matt Molding only added fuel to the fire, and since September shares have fallen more than 70 percent.

Shares closed Friday at 190 pence, well below the offer price of 500 pence when it was listed in September 2020.

It’s even far from the 796.2p shot when THG was seen as a darling in the stock market. But it was reported yesterday that The Analyst has withdrawn its advice to sell or bet the stock, indicating the belief that it has no further decline.

Investors will be relieved and all eyes will be on the stock today to see if it starts a long climb again.

Ads



Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button