What’s Happening to the Smartgroup Corporation Share Price?

Focus on Money Investing from a newspaper

What Does Smartgroup Do?

Smartgroup Corporation Limited [ASX:SIQ] is a salary packaging company that focuses on the government sector. The company listed on the ASX on 2 July, 2014.

What’s Happening to the Smartgroup Share Price?

Here is a daily chart of the stock…

Source: STEX

Yesterday the company announced to the market that the Department of Defence had signed a new contract to continue receiving salary packaging from the company. The terms of that agreement will run until the end of June 2021.

The shares spiked nearly 20% on the news. They’ve pulled back today to trade at $2.03 at the time of writing.

What Now for Smartgroup Group?

According to the Australian Financial Review today, ‘In April, management provided profit guidance of $11.5 million, up from $8.5 million for the previous corresponding period. This suggests the company could be on track to outperform analysts’ expectations, and that the 12-month consensus price target of $2.35 may be conservative.’

Let’s wait and see what the chart says. It will be interesting to see if Smartgroup can hold the gains from this recent announcement. Should the market become stronger after June as we expect over at Cycles, Trends and Forecasts, hitting all time-highs again may not be far away.
Callum Newman

Editor, The Daily Reckoning

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Callum Newman

Callum Newman

Callum Newman is the editor of The Daily Reckoning and Associate Editor of Cycles, Trends and Forecasts. He also hosts The Daily Reckoning Podcast. Originally graduating with a degree in Communications, Callum decided financial markets were far more fascinating than anything Marshall McLuhan (the ‘medium is the message’) ever came up with. Today Callum spends his day reading and researching why currencies, commodities and stocks move like they do. So far he’s discovered it’s often in a way you least expect. To have Callum’s thoughts and insights on the current state of the currency, commodities and stock markets delivered straight to your inbox, take out a free subscription to The Daily Reckoning here.

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