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Go-Ahead Shares Surged Higher Today, Here’s Why

Simon Mugo

Shares of Go-Ahead Group plc (LON: GOG) today rose 1.55% as investors bought the company’s stock based on its strong fundamentals and yesterday’s award.

The UK passenger transport company won the Best Investor Communications Award at the PLC Awards 2020 held yesterday.

While Go-Ahead swung to a loss in its latest earnings report for the 2019 fiscal year, the company’s revenues were not as badly affected by the coronavirus lockdown measures as could be expected.

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The firm also has recurrent revenues in the form of government contracts that are not based on passenger numbers, which gives the transport operator a very solid financial base.

The company’s revenues are likely to recover significantly once transport patterns within the UK normalise, which could appeal to long-term investors.

Go-Ahead could even reinstate its dividend payment once it returns to profitability, but this remains to be seen.

Go Ahead share price

Tradingview chart of Go-Ahead share price 01102020

Go-ahead shares today rose 1.55% to trade at a high of 588.5p.

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Simon Mugo
Simon Mugo
Contributor

Simon ist Autor und Analyst für den Bereich Finanzwesen und blickt auf über sechs Jahre professionelle Erfahrung als Trader zurück. Er absolvierte einen Bachelor in Mathematik und Informatik und hat eine Leidenschaft für die Finanzmärkte. Simon handelt FX, Rohstoffe und Aktien. Er konzentriert sich auf Price Action Trading.