United Capital is up 31% since July, holds tight to third best-performing stock this year 

United Capital’s share price increased by 31% as of the trading day ending August 21, 2024, from its closing price in July, reaching N17.

The stock is now the third best-performing this year, after only Geregu Power and Presco.

After closing at a high of N13 on July 19, 2024, the stock experienced strong sell-side pressure for eight trading days, causing its share price to decline to a low of N10 on July 31.

However, the stock returned to a strong buy-side trajectory in August, closing at N17 on the trading day ending August 21, 2024. It rode a market volume of 8 million shares to rise.

In terms of year-to-date performance, United Capital is the third best-performing stock, with its share price rising by 121% since the first trading day of the year. Geregu Power (150% YTD) and Presco (151% YTD) are in the second and first spots, respectively.

Q2 Performance:

• Total revenue increased by 37.52% year-over-year for the period ending June 30, 2024, from N11 billion in 2023 to N15 billion.

• Although total expenses climbed by 16% year-over-year compared to 2023, the company still recorded pre-tax profits in 2024.

• Pre-tax profit for the period ending June 30, 2024, stood at N9 billion, ascending by 63% year-over-year compared to the same period in 2024, as earnings per share climbed to N2.58 from N1.56 reported the previous year.

• The company’s cash and cash equivalents grew by 240% year-over-year to N494 billion, as total assets in 2024 climbed by 27% year-over-year compared to the same period the previous year.

Dividend payment: 

In the first half of 2024, shareholders of the company announced an interim dividend of N0.91 per share for registered members. This amounted to N5.4 billion in dividend distribution.

According to shareholders of the company, only members who had registered before the 31st of July were paid dividends.

In the annual general report of the company for 2023, the chairman of the company, Chika Mordi, stated: “For 2024, we will relentlessly continue to pursue our set goals and are optimistic that we will deliver higher performance.”

In continuation, he assured shareholders that the company would continue to strive towards generating high returns through efficient business operations. Also, he reiterated the company’s ability to storm through whatever challenge that 2024 might come with.

Meanwhile, United Capital is very bullish and may undergo shallow retracements that investors might take advantage of.