- B&M European acquires 51 Wilko Outlets worth £13 Million.
- The year-to-date return of BME stock is 41.13% and the three-month return is 6.45%.
B&M European Value Retail S.A. has sealed a deal to acquire 51 Wilko stores for £13 Million. BME has filled the void left by rival Wilko with the £13 Million deal, as Wilko is in the process of shutting down its operations. BME European Value Retail S.A. operates around 1,150 stores in the United Kingdom and France under the B&M and Heron brands.
The deal by B&M elevated the BME stock price from the low of £531 to the high of £585. The recent development encourages buyers to invest more in BME stock.
B&M European Value Retail S.A. (LSE: BME) stock has been surging in an uptrend trajectory since September 5, 2023. Therefore, it surged approximately 10% in that timeframe. The stock price has followed a trendline while attaining higher highs and lows.
BME stock closed at £582.6 and gained 2.39% during the pre-market trading. However, the previous candle helped the price in rejecting the 20-day EMA. Moreover, BME stock is currently trading above the 20, 50, 100, and 200-day EMAs, indicating solid bullish momentum in the market.
B&M has placed significant emphasis on maintaining competitive pricing and providing value to its customers while also rewarding its shareholders through dividends. In 2022, the company offered a dividend yield of 3.7%, and its dividend payout has displayed consistent growth at an annual rate of 15% since 2017. However, in the current year, the dividend yield has adjusted to 2.57%. It’s worth noting that B&M distributed dividends in the form of final and special yields in 2023, rather than the regular pattern.
The year-to-date (YTD) return is 41.13% and the three-month return is 6.45%. Hence, B&M reflects sparkling performance throughout the year. The market capitalization of B&M European Value Retail SA is £5.70 Billion and the average volume is 1.91 Million shares.
Will B&M Stock Price Retest Annual High?
The Bollinger Band of BME stock contracted recently which indicates less volatility in the market. However, the current candle is hovering above the SMA line, and appears to be attempting to touch the upper band. If the stock price conquers that, then the price might retest the annual high soon.
On the contrary, if the stock does not sustain the bullish trend, and if the next candle breaks the current candle’s low, then the price might test the lower band.
The relative strength index (RSI) of BME stock has been hovering above the 50 mark since September 7, 2023. The RSI is at 59.14 which indicates strength and the rise of buyers’ participation in the market.
Conclusion
The recent developments have catalyzed the growth of the BME stock price. The stock price has been surging upwards while forming higher highs since the start of 2023. Investors should look for buying opportunities as the technical indicators and analysts’ rating suggest the same.
Technical Levels
Major resistance: £592.0 and £585.6
Major support: £448.9 and £429.6
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
