ALGO Update: Stay Long Ingham’s Group

Our ALGO engine triggered a buy signal for Ingham’s Group on December 18th at $3.42.

Now that Red Lea Chicken has been placed into voluntary administration, analysts estimate that ING’s 40% share of the domestic chicken market will grow by 1-2% and add 1.2% to EPS.

Based on those estimates, we see the share price rising into the $4.00 area over the medium-term.

Ingham’s Group

Inghams Group reports  1H18 Earnings

Inghams Group reported  1H18 NPAT of $65 million versus $51 million the same time last year, whilst revenue of $1.2 billon was down 1.7%.

The company announced an interim dividend of $0.095

FY19 EPS growth is forecast to increase by 5.5% and DPS will increase slightly to $0.20, placing the stock on a forward yield of 5.6%.

After buying ING at lower levels, we’ve locked-in profit as we don’t consider the stock a core portfolio holding.

Inghams Group

 

ALGO Buy Signal For Inghams Group

Our ALGO engine triggered a buy signal for Inghams Group at $3.42 into yesterday’s ASX close.

From a fundamental perspective, ING’s most recent 12-month earnings report showed the company made $59.1 million, which was 85% higher than the previous 12-month period.

The stock has traded as high as $3.90 on October 9th, and we expect to see good buying support in the $3.25 area for a move higher into Q1 2018.

Inghams Group