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- 1 BDEV PLC stock price: The stock price has been in a consolidation since April 2022.
- 2 The management is focused on cash rather than growth, as the income statement and balance sheet reveal.
- 3 The current price has broken the resistance level, see whether it will sustain above it.
The UK-based housebuilding company has declared an increased dividend of £0.23, which will be paid on 3rd November. This value has increased by more than two-fold compared to the previous payout in September, which was £0.10.
Furthermore, the BDEV stock has seen a 52-week low of £313 and a high of £515. The company is a small-cap stock with a market capitalization of £4.57 billion with a price-to-earnings (P/E) ratio of 8.89.
Where is the focus of management
Looking at the income statement, the company is more focused on acquiring cash than investing in its growth. Barratt Developments PLC has made a revenue growth of just 1.02% in 2022 by keeping the net profit positive. However, being in an asset-heavy industry, the company has high debts. The balance sheet shows a high debt-to-equity ratio of 4.4, while the current ratio is 4.6.
Technical Analysis and Prediction of the BDEV Stock Price
At the time of writing, the BDEV stock price has risen after bouncing off its immediate support level of £421 and crossing past the EMAs, which is a positive sign for investors. The stock price is currently trading at the level of £474, which is just above the resistance level of £468. It suggests that the BDWEV stock price could continue its upward trend and move towards the next resistance level of £511.
The indicators and prediction
On the other hand, The Relative Strength Index (RSI) graph indicates a bullish strength. In mid-August, the RSI line rebounded after touching its oversold level of 30. It is currently at 65 and moving towards the overbought level of 70. That is a positive indication for bullish investors, as it suggests that the stock has strong bullish momentum and could continue to rise till it reaches 70.
The MACD (Moving Average Convergence Divergence) line has recently surged above its neutral zone of zero, indicating a bullish trend. In early September, the MACD line had a bullish crossover with its EMA (Exponential Moving Average) line. They are currently at levels of 6.95 and 3.704, respectively.
The price prediction for BDEV stock will be bullish as it has already made it past the immediate resistance after crossing the EMAs. As the RSI still has some points to move before the fall can occur, the price will likely sustain past the level of £468.
Conclusion
The UK-based housebuilding company has declared an increase in dividends. Following that news, the stock price reached a new high just over its resistance level. The price prediction for the stock is bullish.
Technical Levels
Support: £421, and £396
Resistance: £468, and £511
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
