Market's view on Focusrite
Published on April 2024
- A significant trade of 552,986 shares at 300p suggests that the seller responsible for the recent price drop may have cleared their position.
- Observations include a large sell order of 75,000 shares at 340p and a nearly equivalent buy order at 310p, indicating potential price control within a daily volume of 35k shares.
- Comments on orchestrated efforts to prop up the share price following a significant fall, with further updates expected at the end of April.
- Various executives and directors, including the Managing Director and CEO, have purchased shares at low prices. Notably, Liontrust has also increased their holdings.
- Concerns are raised about Keith Ashworth Lord selling shares, referencing inconsistencies in management’s ability to forecast and manage stock issues.
- Nortrust Nominees reduced their holding from 9.97% to 4.95%, selling about 3 million shares. This reduction in a significant stakeholder’s position was notable given the total traded volume.
- A financial update highlighted struggles in the Content Creation market globally, particularly in Asia, with expectations of revenue and EBITDA for the fiscal year reflecting these challenges.
- The company’s presentations and discussions at the London Value Investing Club were noted, with questions about valuation methods like the high discount rate and terminal p/e multiple used.
- Discussions about a possible acquisition surfaced, highlighting the company as a well-run business potentially attractive to buyers.
- Concerns were noted about the company’s financial performance and stock management, with the latest financial update being viewed as disappointing despite some positives.