Why Did Speedy Hire (LON:SDY) Shares Drop 28.4%?

February 04, 2025 05:50 AM PST | By Team Kalkine Media

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Why Did Speedy Hire (LON:SDY) Shares Drop 28.4%? — Image source: Shutterstock

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Highlights:

Speedy Hire (LON:SDY) shares declined by 28.4% during trading on Tuesday.
Trading volume surged significantly compared to the average daily volume.
The company’s financial metrics reflect ongoing challenges in its market segment.

Market Performance Overview

Speedy Hire (LON:SDY) shares saw a sharp decline of 28.4% on Tuesday, trading as low as GBX 18.40 before settling at GBX 19.70. This drop came alongside a significant increase in trading volume, which reached 19,416,518 shares, far exceeding the typical daily volume of 1,299,089 shares. Prior to this downturn, the stock had closed at GBX 27.50.

Stock Trends and Metrics

The company’s stock has been trending lower, with its fifty-day simple moving average at GBX 28.54 and its 200-day simple moving average at GBX 33.33. Speedy Hire currently holds a market capitalization of approximately £92.18 million. The company’s financial ratios indicate a complex financial position, with a PE ratio of 1,996.00 and a P/E/G ratio of 0.21. Additionally, Speedy Hire has a beta value of 1.25, reflecting its sensitivity to market fluctuations.

Financial Position and Liquidity

Liquidity measures show a quick ratio of 0.90 and a current ratio of 0.94, indicating the company's ability to manage short-term obligations. However, a debt-to-equity ratio of 115.48 suggests a high level of leverage, which may impact financial flexibility. These figures provide insight into the company’s balance sheet and its capacity to navigate financial headwinds.

Recent Earnings Report

Speedy Hire last released its earnings results on November 21st. The company reported earnings per share (EPS) of GBX 0.07 for the quarter. With a return on equity of 1.50% and a net margin of 0.64%, the figures highlight ongoing challenges within the company’s operations. Looking at the fiscal year outlook, Speedy Hire is projected to maintain an EPS of 3.6102868.

Industry Context

Speedy Hire operates in the equipment rental sector, which has been experiencing various market challenges. Economic conditions, demand fluctuations, and operational costs all play a role in shaping the company's performance. Market volatility has been a factor in recent share price movements, with external influences also contributing to the stock’s decline.

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