Scottish Mortgage Share Price Analysis and Impact of Unlisted Holdings

Scottish Mortgage’s share price is down by 9 per cent this month. It also dropped in May by 11 per cent and has been in freefall throughout the year, losing 43 per cent year-to-date. 

Scottish Mortgage Buy Considerations

The current Scottish Mortgage share drop has been partly contributed to by the current market sell-off that has plagued the entire economy. The fear of a looming recession, political uncertainty across Europe and the rising interest rates by the Bank of England’s monetary policy committee have also contributed greatly to the current downward trend of the stock market. 

Investors looking to buy into Scottish Morgage also have to consider their unlisted holdings. Reports indicate that these holdings have suffered more losses than the currently listed holdings, which have suffered 70-80 per cent markdowns. Reports also indicate the unquoted exposure has crept above the company’s investment policy limit after its larger listed holdings, which are currently undergoing a sell-off. 

The revelations spell doom for the Scottish Mortgage share and indicate the company may be headed for a rough second half of the year. There is a high likelihood that the unlisted holdings will impact the share price throughout the year, which could mean further price drops in the markets.

Scottish Mortgage Share Price Analysis

The Scottish Mortgage share price recently set a new yearly price low of 670p before having an aggressive bull run that has lasted for two weeks. However, in the past few days, the bull run has slowed down, and in today’s trading session, the markets are down by 2 per cent. 

The drop may be part of a bigger trend setting up, that is likely to continue for the next few trading sessions. With unlisted holdings suffering losses, the company’s shares are looking likely to be affected by these holdings, and the likelihood that they might trigger a further sell-off is high.

This is why I expect the current bearish trend to continue and the prices to trade below the recent yearly low of 670p. On the flip side, long-term investors may see the drop as an opportunity to buy Scottish Mortgage shares at a discount. Catching the falling knife may guarantee high future returns.

Scottish Mortgage Daily Chart