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- 1 SMT stock price: The stock has been in a slightly bullish trend since April of this year.
- 2 The company is making exponential revenue growth but is not able to keep net profit positive.
- 3 The current stock price is just above the support level and it is looking to make a high till the immediate resistance.
Scottish Mortgage Investment Trust is a listed investment company the London Stock Exchange that invests globally. The firm invests in sustainable long-term and growth-oriented businesses that can return significant wealth to SMT in the form of capital gains and dividends. The company is managed by Baillie Gifford & Co. Limited based in the United Kingdom.
A Financial Snapshot
Looking through the last year’s annual report, the company has made extraordinary revenue growth of 150% in 2022. The company is profitable since the operating income while the pre-tax incomes are negative.
In the balance sheet, there is a rise in short-term investments and debtors which have increased the current assets. However, due to the current liabilities being on the higher side, the current ratio is 0.50. Furthermore, the long-term debt seems higher than equity as the Debt-to-equity ratio is 8.3.
Stock Price and Ratios
The SMT stock has made a 52-week high of £833 and a change of -9.05% in these weeks. The 50-day moving average price is at £675 while the 150-day moving average price is at £687. The price-to-earnings ratio of the SMT stock is negative as the company is making net losses. However, despite those losses, the company has still given a dividend share of £2.5 back in July of this year.
Technical Analysis and Prediction of SMT Stock Price
At the time of this writing, the SMT stock price is trading at the level of £677 just in line with the uptrend. If the stock keeps rising, then the immediate resistance level will be at £714 while the support will be £641, which is at the bottom.
The Relative Strength Index (RSI) is currently in its neutral zone 52. It is expected that its level will reach the overbought level of 70 if the bulls make a sudden surge up to their resistance level.
The prediction for SMT stock price will be bullish until it reaches its resistance level of £714. The latter prediction will depend upon the time the stock will take to rise to that level. If the bulls make it quick, there will be pressure from the RSI as it will reach its oversold zone. To make a confirmed breakout, the investors must be patient and stay with the trend.
Conclusion
The SMT stock has been in the headlines lately due to its profit growth. However, the company is burning its funds on other non-operating expenses. Due to net negative profits and cash, the balance sheet and profitability ratios are affected. The current price is surfing a bullish trend and a breakout is near.
Technical Levels
Support: £641, and £604
Resistance: £714, and £769
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.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
