Hiscox
Does this Upgrade present an opportunity for you?
Is it irrelevant, or will the Upgrade make the Hiscox share price more attractive?
- Numis upgrades to Add (from Hold), with a target of 1740p.
- Consensus summary: 3 Buys, 6 Holds, 4 Sell; Average target: 1486p (Source: Bloomberg).
- Current share price 1566p (at time of writing).
- Shares -5% from 2019 highs; +9.1% from 2019 lows; -3.4% year-to date
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
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Trading Hiscox – An Example
Let’s say you think that Hiscox shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Hiscox using a CFD, at the current price of 1566p. To do this, you need £2,000.
For the purpose of this example, let’s assume the Hiscox share price rises to 1723p Dec highs (+10%). Your profit would be £1000 from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Hiscox shares fall 5% and hit your stop-loss. Your loss would be £500.
This is provided for information purposes only. It should not be taken as a recommendation.