St. James’s Place Share Price (STJ) Makes 52 Wk High, Doubling Up

St. James's Place share price (LON:STJ) hit a fresh new high at 1,187.50, on a 7.81% gain during the last week of trading. The rally has now pulled STJ firmly into breakout territory, with an impressive gain of 114%, to more than double up, over the past 12 months. This morning saw a new level of 1,188.50 on the open, only for a pullback.

The story behind this resurgence is rooted in strategic decisions made over the past year. In July 2024, St. James's Place announced a significant cost-cutting initiative, targeting £100 million in annual savings by 2027 and a total of £500 million by 2030.

This move, coupled with robust half-year financial results that revealed a record £181.9 billion in funds under management and net inflows of £1.9 billion, triggered a remarkable 25% surge in the company's share price, its largest single-day jump since the 2008 financial crisis.

The strong inflows and cost-cutting measures have visibly improved market sentiment and confidence in the company’s future, pulling the stock outside of a decline that back in mid 2023. A look at the 3 year chart below with weekly candles shows St James's Place shares have broken above near term resistance, and is re-testing some old levels.

Looking back to operations, and there is added shareholder value that is filtering through into sentiment. In April this year, St. James's Place executed a share buyback program, purchasing 192,000 of its own ordinary shares with plans for cancellation, a move designed to optimize its capital structure and potentially enhance shareholder value.

However, not all analysts are entirely convinced that the upward trend is sustainable. UBS downgraded St. James's Place's stock rating from ‘Buy' to ‘Neutral' in March 2025, arguing that the company's recovery was already largely priced into its share value, setting a price target of 1,180p.

Citi also lowered its target price in April, citing weaker fund estimates and higher expected costs from ongoing fee changes, although maintaining a ‘Buy' rating due to stronger-than-expected client inflows.

At this stage, the bulls appear to have this one by the horns, although careful risk management is needed.