Shares of Vistry Group PLC (LON: VTY) today surged 14.3% despite the lack of major releases from the British homebuilding company that was once known as Bovis Homes.
The company’s shares have been rising for the past six days after hitting a major support level where buyers stepped in and kept pushing its share price higher.
Vistry Group’s last major announcement was on October 25 when it revealed that its ts partnerships division had secured “significant” contracts and joint venture developments with housing providers with a gross development value of £165 million.
The company’s management hasn’t said much since then, which implies that Vistry’s recent rally could be driven by sustained institutional buying over the past week.
Institutional investors usually accumulate a large position in a company over several days since they usually do not want to trigger a surge in the underlying stock’s price with one large purchase.
I would not be surprised to see a major investor announce a significant stake on Vistry Group in the near future if that’s the catalyst behind the latest rally.
Other reasons behind the rally could be an influx of individual traders coupled with short covering as investors with short positions by shares to minimise their losses.
Vistry Group share price
Vistry Group shares today surged 14.3% to trade at 701p having rallied from Friday’s closing price of 613p.