Sell Alert: let’s bank a 125% gain in Ashtead Technology in less than ten months
9th May 2024 |
We’ve decided to sell subsea equipment specialist Ashtead Technology Holdings (AIM: AT) to bank a superb 125% return in less than ten months.
The stock has risen from 687p on 16 April to 840.46p now, putting it around 125% up – a fantastic return on a stock that only entered the model portfolio at the end of July 2023.
As you’ll recall, the firm serves both the offshore renewables and oil and gas sectors, but also provides equipment for infrastructure decommissioning.
The majority of its rental fleet can be seamlessly deployed across oil and gas projects and the wind sector, thereby maintaining consistently high utilisation rates.
The company is certainly on an ambitious growth journey and making ongoing investments in its subsea equipment rental fleet that has in excess of 23,000 assets.
But it is now trading on a forward price-to-earnings multiple of 23 – which is starting to look a little toppy and which certainly doesn’t give it much room for error.
With some insiders starting to dispose some stock, I think it’s now prudent to protect profits and SELL.
Action to take: SELL Ashtead Technology Holdings
Ticker: AIM: AT
Current price: 840.46p
Our buy price: 374p
% gain/loss: 124.72%
James Allen
Co-editor, Southbank Growth Advantage
