Interactive Investor

Is the worst over for YouGov shares?

As the UK goes to the polls, independent analyst Alistair Strang reveals whether this data and polling company is worth voting for.

4th July 2024 07:24

by Alistair Strang from Trends and Targets

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We’d suspected the rolling pandemic of elections around the world was going to provide a bumper year for the polling company, YouGov (LSE:YOU). This illusion was shattered, when the company issued a profit warning on 20 June, a point when everything went south for the share price, the market moving it from 800p to 576p in the blink of an eye.

It transpires the bread and butter of YouGov’s income actually comes from surveys carried out for companies into their customer behaviour, a business area which has seen a reduction in contracts apparently.

It’s not exactly rocket science, and doubtless quite a few organisations opted not to waste money seeking answers which were already quite clear.

We’ve a reasonable suspicion YouGov's share price may have discovered a floor at the 400p level. This scenario shall be confirmed if movement above just 435p should trigger recovery to an initial 450p with our secondary, if exceeded, at 488p.

At such a level, it becomes essential for the share to close a session above 488p to confirm bottom is “in”, effectively painting a future 559p as a viable third level target. Unfortunately, at this time, we are unable to project any recovery capable of moving the share above the Red uptrend since 2016.

Should trouble be brewing, the share price needs a vote below 400p as it risks a freefall to 182p and a probable “ultimate bottom”, a price level below which we cannot calculate.

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Source: Trends and Targets. Past performance is not a guide to future performance.

Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.

Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea. 

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