Market's view on Bridgepoint
Published on April 2024
- A stock watcher has sold their shares at 263, highlighting concerns about the impact of rising interest rates on private equity profits. They consider rebuying at lower prices.
- Concerns are raised about the company’s share price falling to around 230p, with speculation about the reasons for the recent decline despite higher valuations not long ago.
- The performance of the company’s funds and dividend payouts is viewed as a positive step, although market reactions suggest some reservations.
- Share buybacks are critiqued for potentially indicating a lack of better investment opportunities for the company’s capital.
- Observations are made on the delay of a trading statement, suggesting it might be due to significant, positive developments given a recent 25% stock price increase.
- Disappointment is expressed over private equity practices of inflating IPO prices, which often subsequently decline, citing Bridgepoint as an example.
- Continuous significant director purchases are noted, suggesting insider confidence in the company’s prospects.
- Immediate market reactions to news releases appear positive, indicating approval of company strategies or announcements.
- Periods of heavy director buying are highlighted, including a substantial purchase by the Chairman, signaling potential insider confidence.
- Discussions include the effectiveness of the ongoing buyback program and its lack of significant impact on share price support.