Capita PLC (LON: CPI) shares today fell 2.9% today despite the UK-based business process outsourcing company announcing that its contract with the Scottish government had been extended to 2023.
The company also recently won the contract to install the network infrastructure on which the Emergency Services Network being built within the London underground rail system will operate.
However, Capita’s stock is still trading near its mid-March lows despite the positive development mentioned above in a classic case of the market mispricing an excellent company.
The company’s shares had recently rallied higher on rumours that it had received a takeover offer from a London-based private equity fund.
The stock could be setting up for a major breakout in either direction and it would be prudent for both traders and investors to wait for confirmation of the same before establishing any new positions in the company.
Capita share price
Capita shares today fell 2.9% to trade at 28.86p having ended yesterday’s session trading at 29.75p.