The Hut Group Share Price Continue to Fall Despite High Revenues

The Hut Group Share Price continue to struggle in the market despite recording huge revenues in the last financial year. Since September 2021, the Hut Group share prices have dropped by more than 85 per cent. The bearish trend is still in progress, and in today’s trading session, the company has lost almost 2 per cent of its value in the markets.

Usually, a price drop may be an indication that a company is struggling financially. However, that is not the case with the Hut Group share prices. This is because, in the last financial year, the company recorded a 37.9 per cent year on year revenue growth. The full-year 2021 revenue totalled over £2.2 billion. According to Matthew Moulding, THG’s CEO, this also indicated the revenue resulted from significant growth across all divisions.

When compared to the last quarterly figure of the company, when most of the drop in share price happened, the company had a 38.9 per cent growth in sales. This translated to six orders per second during its peak digital trading period. However, during the same time, the share prices dropped by 68 per cent.

The Hut Group Share Price Prediction

The Hut group Share Price has dropped by 60 per cent since the year started. The company has also been on a long-term bearish move throughout 2022. However, the company has been showing signs of resurgence in the past few days. Since March 7, the hut Group share price has risen by more than 30 per cent. The prices have also traded within an ascending channel during the entire time.

Looking at the 4-hour chart shown below, we can see the prices recently hitting the lower trend line of the channel. This resulted in the prices bouncing from the trendline. Although the prices have no momentum and appear to be trading sideways, the chart shows a bullish price action lean. Therefore I expect the prices to continue with the bullish move in the next few days. I also expect the prices to trade within the ascending channel.

THG 4-hour chart