Plus500 Shares Crash in Two Days
What goes up must come down. After gaining outstanding momentum earlier in the year, Plus500 starts getting used to the bear market.
The firm purchased more of its own ordinary shares on Thursday after it saw a continued decline. The purchase, in total, cost around £294 thousand.
As per its regulatory filling, the firm said it purchased 23,000 of its own ordinary shares. It took place in Credit Suisse Securities (Europe) Limited.
The average volume-weighted price pair per share was £12.79, bringing its total to exactly £294,170 on Thursday. It had £12.92 as its highest price while £12.5 was the lowest.
Unfortunately for the firm, markets paid close attention to how much its value dropped since the last purchase. There was a difference between the share prices between Wednesday and Thursday alone.
Like on Thursday, the firm bought 23,000 of its own shares on Wednesday. It had paid £29,967.30 in total with an average price per share coming in at £12.96.
The drop meant that it had to pay about £3,790 less than the same amount of shares in two days.
The Plus500 Q1 Momentum
By the end of March, the London-based broker held its buyback program with a purchase of 16,280 shares. Its volume-weighted average per share was at £12.33 at the time, which Plus500 paid £200,732.4 for.
Its lowest price paid per share was at £12.39. It’s important to note that this was lower than the recent lowest prices.
Before this program, the firm had claimed that it expects its revenue and profitability to surpass consensus expectations. This was as per its first quarter trading update on April 7th.
At the time, Plus500 also said it will see strong gains from customer trading performance for the second quarter.
Now that the broker started the said quarter with lower EPS, investors might lose the faith they once had.
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