Market's view on Pollen Street
Published on April 2024
- Stock watchers have noted the company’s significant share buyback, acquiring almost 0.2% of outstanding shares in a single day, suggesting the company is serious about this strategy.
- Concerns were voiced about director sales coinciding with share buybacks, which some see as potentially dubious.
- There are discussions about the dividend being paid in two parts instead of four, enhancing its value due to the buyback.
- Positive views were expressed on the results, highlighting the company’s growth in difficult market conditions and potential for future gains, comparing its trajectory to that of Intermediate Capital.
- The company is nearing eligibility for inclusion in the FTSE 350, indicating its growth and stability.
- The company’s assertive buyback strategy was praised, with a particular emphasis on its sensible nature given current valuations.
- Criticism was directed at Quilter for their decision to sell shares just as the company begins to recover and profit per share increases.
- Speculation exists around Quilter potentially unloading a significant portion of their shares, which could exceed the volume the buyback can absorb, hence affecting the stock price.
- Ambitious targets were set by the company aiming for £10 billion AUM within 4-5 years and a return on investment assets of low double digits within 2-3 years.
- Financial metrics were highlighted, such as a P/E ratio of 8.5 and an FCF yield of 11.7%, alongside a progressive dividend yield of approximately 9.5%.