MANU Stock Forecast: Shares of Manchester United (NYSE:MANU) rose 10.5% during the most recent trading session and closed at $23.34 per share. The rise was accompanied by a significant increase in volume, with a greater number of shares being traded than is typical for a given session. This is in contrast to the stock’s loss of 7.5% over the course of the last four weeks.
The optimism stemming from takeover rumors emanating from a Qatari investment group is the primary force behind Manchester United’s recent surge in stock price. Despite the fact that discussions regarding a takeover have been going on for quite some time, numerous media outlets in the United Kingdom claim that an acquisition could be finalized in the very near future. It is anticipated that the transaction will clear the way for value addition to the soccer club as well as improvements to the stadium. In addition to a potential offer from Qatar, United is anticipating interest from Sir Jim Ratcliffe and the proprietor of the Ligue 1 club Nice.
The storied club has been the topic of speculation regarding potential buyers ever since the previous year, with shares skyrocketing in November after it was reported that the Glazer family, who are the club’s current owners and are based in Florida, were considering selling the franchise.
There Have Been Rumors That Qatar Is Interested in Purchasing Manu Stock
Jim Ratcliffe, a British billionaire and fan of the club, is one of the potential bidders for the team. Additionally, Saudi Arabia’s sports minister Prince Abdulaziz bin Turki Al-Faisal stated to the BBC in the previous year that his country’s government would support private sector bids for the team in addition to Liverpool FC.
The price of Manchester United’s shares has increased significantly over the past year, and the movement on Wednesday brought their gains to approximately 75%. The increase also reverses what had been a loss of 9.5% so far this year through Tuesday’s closing price and puts an end to a losing streak of seven days, which was the longest it had been in more than a year.
In the upcoming report, it is anticipated that this soccer club will report a quarterly loss of $0.01 per share, which is equivalent to a change of -116.7% when compared to the previous year. It is anticipated that revenues will total $170.8 million, representing a decrease of 31.7% from the same quarter one year ago.
Empirical research has shown that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This is true even though earnings and revenue growth expectations are important factors to consider when determining the potential strength of a stock.
Over the course of the past 30 days, the consensus earnings per share estimate for Manchester United’s upcoming quarter has remained unchanged. Furthermore, in the absence of any discernible pattern in the manner in which earnings estimates are being revised, the price of a stock will typically not continue to rise. Consequently, make it a point to keep a close eye on MANU moving forward to determine whether or not this recent surge can turn into even more strength in the future.
Featured Image: Unsplash @ Larry RW
