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4 shares the pros are buying and selling

Our regular roundup of trades by professional investors, featuring Jupiter, Boohoo, AB Dynamics and Integrated Diagnostics.

by David Campbell on Oct 02, 2017 at 05:00

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Key stats
Market capitalisation£2,525m
No. of shares out458m
No. of shares floating403m
No. of common shareholdersnot stated
No. of employees463
Trading volume (10 day avg.)1m
Turnover£402m
Profit before tax£136m
Earnings per share29.64p
Cashflow per share30.84p
Cash per share72.23p

Jupiter Fund Management

Citywire A-rated value investor Roland Arnold has upped his stake in asset manager Jupiter Fund Management (JUP) as its shares climb back to approach the record high they hit earlier this year.

Arnold increased his holding in the business from below a disclosable level to 5% or just over 20 million shares worth £110 million at the current record share price of 550p.

Reuters shareholder data lists the stake as being held via the £700 million BlackRock UK Special Situations fund, which Arnold runs alongside co-manager Luke Chappell.

Jupiter previously peaked at 546p in July ahead of an update showing assets under management rose 16% over the first six months of the year to £46.9 billion with profit 8% higher at £93.9 million. The shares are up almost 25% over the year to date.

Analysts remain cautious on the stock with the universe of opinion tracked by Reuters offering a median target price of 525p.

Key stats
Market capitalisation£111m
No. of shares out19m
No. of shares floating10m
No. of common shareholdersnot stated
No. of employees78
Trading volume (10 day avg.)m
Turnover£20m
Profit before tax£4m
Earnings per share22.25p
Cashflow per share23.84p
Cash per share58.57p

AB Dynamics

Keith Ashworth-Lord, the Citywire AA-rated value investor, has upped his stake in AB Dynamics (ABDP) as shares in the car testing and simulation business stall after two years of acceleration.

The fund manager increased his holding in the company from 4.9% to 5.2%. That gives him a stake of just over one million shares, worth £5.8 million at Friday’s closing share price of 580p. The stock is down from a peak above 600p in April.

The shares are held in his £183 million CFP SDL UK Buffetology fund, the largest outside investor in the business, which holds the company as a top-ten position.

AB Dynamic has effectively traded sideways over the last six months following an 18-month joyride in which it soared over 200% on explosive demand for its autonomous vehicle services.

In half-year results to the end of February the business reported profits 9% higher at £2.5 million. House broker Cantor Fitzgerald rates the company a ‘hold’ on a price target of 625p.

Key stats
Market capitalisation£2,432m
No. of shares out1,148m
No. of shares floating688m
No. of common shareholdersnot stated
No. of employees1301
Trading volume (10 day avg.)22m
Turnover£295m
Profit before tax£24m
Earnings per share2.16p
Cashflow per share2.59p
Cash per share6.26p

Boohoo.com

Old Mutual trimmed exposure to Boohoo.com (BOO) just before Carol Kane, the co-founder and chief executive of the online fast fashion retailer, dumped £10.7 million of shares on the market last week.

The South African financial services giant pared its stake Boohoo from 15% to 14.9%, giving it just over 170 million shares. As Boohoo’s largest external investor it may wish it sold more as Kane subsequently jettisoned 4.65 million shares, around a tenth of her holding, at 230.1p. She retains about 46.3 million shares, or 4% of the chain.

From 260p on Wednesday night the shares dropped 46p or nearly 18% to 211.5p, reducing the group’s position to £359 million.

Star mid-cap stock investor Richard Watts is among those in the group with a holding in his £2.9 billion Old Mutual UK Mid Cap fund, with a small position in fellow Citywire AAA-rated colleague Luke Kerr’s Dynamic Equity fund.

The company has seen explosive sales growth for its discount high street clothing among a target market of cash-strapped 16-30 year olds.

Panmure Gordon this week upgraded its guidance on the stock to a buy, on a price target of 290p, after the company reported a 42% leap in half-year operating profits to £20 million.

Key stats
Market capitalisation£588m
No. of shares out150m
No. of shares floating112m
No. of common shareholdersnot stated
No. of employees4323
Trading volume (10 day avg.)m
Turnover66
Profit before tax14
Earnings per share0.10 EGP
Cashflow per share0.12 EGP
Cash per share0.29 EGP

Integrated Diagnostics

Citywire A-rated international small cap veteran Jed Weiss has pared his stake in London-listed, emerging market medical services provider Integrated Diagnostics (IDHC) as its shares dip from a year high.

Weiss trimmed his stake in the company from 10% to 9.6% or 14.4 million worth $54.7 million at a share price of $3.80 (£280p), down from a late August high of $4.12.

The shares are primarily held in his $3.4 billion Fidelity Series International Small Cap with a smaller holding in the $1.1 billion International Small Cap Opportunities fund, which Weiss co-manages.

Investors appear to have booked some profits on Integrated Diagnostics after its shares spiked following an upbeat outlook, reporting revenue 24% higher over the first half of the year and earnings per share up 27%.

Analysts remain sceptical of the stock with EFG Hermes only slightly below consensus, downgrading its guidance to neutral this month on a price target of $3.40.

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  • Ab Dynamics PLC (ABDP.L)
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  • Boohoo.Com PLC (BOOH.L)
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  • Jupiter Fund Management PLC (JUP.L)
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  • Integrated Diagnostics Holdings PLC (IDHC.L)
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