Sage Group shares nearing support

Sage Group, an enterprise software company, posted underlying operating profit down 6.7% to 411 million pounds that missed estimates.

Trader 1

Sage Group, an enterprise software company, said full-year underlying EPS fell 1.6% on year to 27.43p on organic recurring revenue of 1.59 billion pounds, up 8.5%. Underlying operating profit dropped 6.7% to 411 million pounds and missed estimates. The company proposed a dividend of 17.25p per share, up 2.0%. Regarding the outlook, the company said: "Against the uncertain economic backdrop, we currently expect organic recurring revenue growth for FY21 to be in the region of 3% to 5%, weighted towards the second half of the year. We also expect other revenue (SSRS and processing) to continue to decline, in line with our strategy."

From a chartist’s point of view, the stock price is under pressure below the resistance level at 701p. A long term trading range takes place between 826p and 515p, indicating that the downward trend could be limited by the key support at 515p. In addition, a potential continuation Head & Shoulders pattern is taking shape. Readers may want to consider the potential for opening long positions above the support threshold at 515 with 701p and 775p as targets. Caution: a break below 515p would call for a long term reversal down trend with 378p as first target.

Source: GAIN Capital, TradingView

More from Equities


This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit for the complete Risk Disclosure Statement.