The Hut Group Share Price: Another Bearish Move?

The Hut Group share price continues to trade at its lowest point after hitting the 35.54 price level last week. Today, despite going up by 2 per cent in the early hours of the trading session due to a huge gap-up opening, the trend looks poised to continue with the aggressive bearish move during intraday trading. 

The current bearish move has been a persistent story for the Hut Group share price, which has lost over 80 per cent of its value year to date. Despite the market losses, recent financial data showed the company was doing better than expected. The company reported revenue growth of 12.3 per cent in the first half of the year, totalling £ 1.1 billion. The company also posted £ 32.3million of Earnings before interest, taxes, depreciation, and amortization.

However, despite posting strong revenue results, the company’s losses widened partly due to the rising cost of living, which saw material costs for some products rising and affecting its profit margins. The company has already indicated it is willing to increase its prices at a slower rate and lower rate than inflation to ensure they remain competitive. 

The Hut Group Share Price Analysis

Despite today’s trading session opening with a huge market gap-up, which has resulted in the Hut Group share price recording a 2 per cent gain, there is a high likelihood that intraday trading will see prices closing with a loss.

Looking at the chart below, it is clear that the Hut Group share price is still in an aggressive bearish trend, days after setting an all-time price low for the company. Therefore, my Hut Group price prediction expects it to break the recent price low of 35.54 in the next few trading sessions.

There is a very high likelihood that we might see it trading below the 30p price level in the next few trading sessions and possibly dropping as far back as the 25p price level. However, my bearish analysis will be invalidated if the share price trades above the 45p price level.

The Hut Group Daily Chart