Friday, February 20, 2015

Xero shares rally past $20 NZD

Tom Pullar Stecker for Stuff.co.NZ  writes: Xero shares are trading above $20 for the first time in four months but analysts are scratching their heads over what has driven the price higher.

The cloud accounting software firm received a please explain letter from the NZX yesterday, asking if Xero might be holding back any material news to explain a 15 per cent rise earlier this week. Xero responded that it was not.

Such inquiries usually play out a familiar way, with the company's share price often settling back if they report they have nothing new to disclose. But Xero shares have instead resumed their upward trajectory, jumping 8.1 per cent to $20.35 in trading today.

Woodward Partners analyst Nick Lewis said he had no explanation for the rise, but the volumes traded suggested that small investors rather than institutions were behind the rally.
"Maybe one of the retail brokers either here or in the United States has suddenly got excited about Xero, but that is pure speculation," he said.

"There haven't been any big block trades or any 'new news'."
Forsyth Barr analyst Blair Galpin said yesterday that he also had no knowledge of what might be causing the movement.

Xero held its Xerocon user conference in Britain last week and chief executive Rod Drury said he thought Xero was at a tipping point in that market.

3 comments: