The ITV share price surged by more than 9 per cent during yesterday’s trading session amidst reports that it was considering selling a stake of ITV studios to help lift its depressed share price. According to reports, a London-based company had fielded expressions of interest in acquiring ITV’s studios.
Even before the company had expressed interest, Carolyn McCall, The company’s chief executive, had already expressed her openness to the idea of selling some stake in the company to shore up the share price of the company, which is down by 41 per cent year-to-date.
However, despite the positive response in the markets yesterday following the reports of a possible sale of a stake in the company, many still remain doubtful if such a sale can succeed. An ITV insider indicated such a move remained unlikely due to the company’s longstanding policy of not breaking up the group’s integrated broadcaster-producer model.
Despite yesterday’s strong bullish trend that resulted in ITV’s share price surging by almost 10 per cent, today’s trading session looks poised to close with a loss. After opening the session with a gap-up of 1.4 per cent, the intraday trading quickly changed to a bear market, which has seen ITV’s share price drop by 3.5 per cent from the session’s opening price.
With the ITV share price currently trading at 66.5p, there is a high likelihood that we might see prices continue to drop as a result of a price correction following yesterday’s 9 per cent gain. However, my ITV share price for the next few trading sessions remains aggressively bullish.
I expect the prices to resume the bullish trend, which has seen the company gain 16 per cent in October. There is also a high likelihood that we will see prices breaking the monthly price high of 69 and trading above the 70p price level in the next few trading sessions. A drop below the 60p price level will invalidate my analysis.
This post was last modified on Oct 18, 2022, 12:20 BST 12:20