Why did the Meggitt share price surge last week?
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2020 was a tough year for the
Meggitt(LSE:MGGT) share price. As the aerospace sector ground to a halt, the engineering group saw its stock plummet by nearly 60% in the early months of the pandemic. And within six months, its underlying profits were slashed by 37%.
As the vaccine rollout continued, along with new contracts being signed, the company started recovering. But last week it jumped by 14% in a day. What caused this sudden growth? And should I be adding this stock to my portfolio?
US$12.3 TRILLION out of thin air…
The Meggitt share price has doubled in 12 months. Here’s what I’m doing now
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Both the past week and past 12 months have been interesting times for
Meggitt(LSE:MGGT). The Meggitt share price has experienced some interesting growth in these time periods. Rumours of a takeover caused the spike in share price last week. Based on current levels and takeover rumours, is the Meggitt share price an opportunity right now?
An aerospace firm that isn’t suffering too badly
Meggitt Group is one aerospace firm that isn’t faring too badly in the current economic climate. The impact of the Covid-19 pandemic on the aviation and aerospace industry has been well documented. The Meggitt share price, though, hasn’t fared badly, in my opinion.
H C Slingsby a tad lower after listing expected post-pandemic issues
A look at Friday s major share movers on the London Stock Exchange
H C Slingsby PLC (LON:SLNG) shed 4% to 225p after expressing caution on this year’s outlook as the market remains competitive.
Whilst the manufacturer s sales grew in 2020 due to demand for Coronavirus-related products, it noted that this will not necessarily continue to be the case, with many orders not repeating.
It has also incurred in significant cost increases for steel, plastic and timber products as well as for shipping, alongside delays in receiving goods, which are expected to remain for the rest of the year and hit margins.
As the Meggitt share price soars, have I left it too late to buy?
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Aerospace engineering group
Meggitt (LSE: MGGT) has been one of my favourite choices to play the recovery I expect to see in airline travel. But the Meggitt share price has risen by 115% over the last year and is up by 14% today on bid rumours.
I like Meggitt because many of its products are embedded in modern airliners and require repeat purchases. I think the business has a strong future. But after such big gains, have I left it too late to buy? I’ve been taking a fresh look at this situation.