Is it Smart to Invest in Smart Metering Systems PLC (LON:SMS) Stock?

scottishstocks.com - price_SMSThe stock of Smart Metering Systems PLC (LON:SMS) went green today with a delay of few trading sessions to close with a decline. Seems that the strong buying signals from the last weeks has not been able to convince investors to initiate an upward move of the share price.

One of possible reasons for the recent, almost not expected performance of SMS could just be seen in its year to date trading range and profits earned on the company’s stock.

Almost at the end of the trading day today, the stock of Smart Metering Systems has been worth GBX 553.50. In a weak trading activity, the share price increased slightly to close with 0.63% decrease, making a promise for a possible upward move this week.

Although the generally positive trading session today, the stock performance these days is not in unison with the expectations of many investors.

Most recent news and the lately announced by Smart Metering Systems PLC Annual Report and Accounts 2016 leave the impression that company’s stock has a potential to grow immediately. As of now, this is not a fact.

Some brokers raised the price target of SMS to 1,068 pence at the beginning of April. This was a good signal for plans to buy SMS.

In confirmation of the positive mood, not only managers of the company invested in SMS at the end of last month. Directors’ wives also acquired company’s stock like to suggest that now it is a good time to invest in it.

Last Thursday, the metering services company publicised its Report and Accounts for the twelve months ended 31 December 2016 (the “Annual Report”) together with the Notice of Annual General Meeting.

Without any doubts, the basic financial highlights of Smart Metering Systems are fuelling only confidence and buoyancy in SMS. The company reported:

  • 25% increase in revenues, up to £67.2 million
  • 21% increase in the Underlying EBITDA (£31.9 million)
  • 10% increase in the Underlying Earnings per Share (19.2p).

Although all potential buying signals the share price of Smart Metering Systems keeps red with only hopes to start a green, upward move.

As mentioned earlier, one of possible explanations for this stock performance could be the wide trading fluctuation of SMS.

The stock was worth GBX 396.25 on May 13, 2016, oscillating within the range of its recent 52-week low. This would make 40 % profit for those who acquired the stock then.

On today’s date last year, SMS closed the market at GBX 404.25. Holders of company’s stock has been able to record return on investment of 37% for one year.

All these simple calculations make some investors to be watchful, while for others, they are just a trigger of speculative mood to bank gains.

 


 

Smart Metering Systems is a Glasgow headquartered business. The company installs, owns and manages utility metering assets and provides energy management solutions.

 

All content is for informational purposes only and the information herein should not be accepted as a financial advice or recommendation to buy or sell shares and or any financial products.

The content herein expresses the views of the author and Do Not Intend to inspire special attitudes towards any of the companies, share prices and teams or persons mentioned here.

Author: Ekaterina Zelenkova

Both, my economics background and over 12 years’ experience in the fields of finances, financial online journalism and management provide me with an exhaustive ground for passionate work in the fields like new markets development, financial content writing and analyses. Recently I’m dedicated to interpreting, translation services, web design, financial content writing and digital consultancy.

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