SDI Group Share Price (SDI)

Won’t be long now.

Shareholder Value Beteiligungen Aktiengesellschaft, based in Frankfurt, have been buying more SDI - they now have 5.05% with 5.28m shares.

This is up from 3.94% and a prior holding of 4.12m shares, so they've bought over 1.1m more shares as of 10th April:

Https://uk.advfn.com/stock-market/london/sdi-SDI/share-news/SDI-Group-PLC-Holdings-in-Company/95830814

Ken Ford has just bought another 100,000 shares, taking his holding to just over 1.2m shares:

Https://uk.advfn.com/stock-market/london/sdi-SDI/share-news/SDI-Group-PLC-Director-PDMR-Shareholding/95787684

That's 200,000 shares in the last 3 weeks, just prior to the year end. The conclusion as to the tone of the upcoming year end trading statement would appear to be self-evident.

A nice bolt-on acquisition today, earnings-enhancing in the coming year. The acquisition multiple looks good value at slightly less than their usual multiples paid, and there's plenty of room for synergies and savings:

Https://uk.advfn.com/stock-market/london/sdi-SDI/share-news/SDI-Group-PLC-Acquisition-of-Collins-Walker/95784981

Today's news implies confidence going forward, bolstered by Ken Ford's recent share buying and the previous in-line guidance.

Cavendish this morning have left their forecast for the year ending this month at 6.2p EPS, but have raised their forecast for the year starting 1st May slightly to 6.9p EPS.

They reiterate their 135p target price, and summarise:

"Valuation:

We maintain our existing 135p target price, based on a FY26E P/E of 19.6x. This offers significant upside to current levels, with the shares trading on an attractive FY26E P/E of 7.1x. This remains a significant discount to its nearest peer Judges Scientific (trading on FY2 P/E of 18.7x). We feel the group’s value should be inherently greater than its acquisition multiples (as we have mentioned, the average acquisition EBIT multiple is 6.4x), particularly as management is now focusing on generating operational efficiencies and integration synergies between its existing group subsidiaries."

You might not be wrong, but SDI hardly have a history of placings so not sure where you came up with that. I've been a holder for about 5-6 years and they haven't done one of any size that I remember. They have always used debt or cash to pay for acquisitions. Placings are not a bad thing either if the money is used correctly. Ideally they would hold off on acquisitions, and get the debt down to strengthen the balance sheet.