Why have traders been selling Taylor Wimpey shares recently?

A look at why traders at trading platform Fineco have recently been selling the shares of house building company Taylor Wimpey.

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Image of person checking their shares portfolio on mobile phone and computer

Image source: Getty Images.

Housebuilding company Taylor Wimpey was the stock most traded by UK investors this past week according to the latest trading stats from Fineco. Here’s why Taylor Wimpey shares have been seeing a lot of action and a look at some other stocks that have also been hotly traded in the last week.

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What has happened with Taylor Wimpey recently?

Taylor Wimpey, one of the largest housebuilders in the UK, recently announced that it is on track to meet previously forecast profit expectations for the year after house price inflation offset building cost inflation.

In a trading update, the company said that it is set to achieve an operating profit of £820 million for the year just as it forecast in its half-yearly update earlier in the year. The company also said that it is on track to meet its medium-term operating profit margin target of 21%-22%.

This comes after the company incurred significant losses during the pandemic last year.

Why have traders been selling Taylor Wimpey shares?

According to data from Fineco, Taylor Wimpey was the top moving stock in the UK this past week, trading at 9% volume buy and 91% volume sell.

The significantly higher selling activity appears to be counterintuitive given the company’s recent positive update on profit expectations and the fact that the housing market is still experiencing a strong period of growth.

So why exactly have traders been selling the company’s stock? The negative investor sentiment that is driving the selloff could be attributed to one major factor: the prospect of higher interest rates.

The bank of England is tipped to raise interest rates soon. Higher rates will almost certainly raise the cost of new mortgages, making homes less affordable. This will have an impact on the demand for new homes, which could affect housebuilding companies like Taylor Wimpey.

What else have investors been trading?

Apart from Taylor Wimpey, UK investors have also been trading a wide host of other stocks. Here are the top 10.

Rank

Company

Volume buy

Volume sell

1

TAYLOR WIMPEY

9%

91%

2

ROYAL DUTCH SHELL A

50%

50%

3

JD SPORTS FSN

50%

50%

4

AST MRTN LGD

5%

95%

5

NOVACYT

39%

61%

6

WH SMITH

100%

7

HARBOUR ENER

8%

92%

8

BHP GRP

86%

14%

9

DE LA RUE

100%

10

PAYPOINT

59%

41%

 

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How can you start trading Taylor Wimpey shares and others?

If you are interested in trading the stocks and shares of companies like Taylor Wimpey, the easiest – and usually the cheapest – way to do it is through an online share dealing platform. These are platforms that give you access to the shares and stocks of publicly traded companies.

If you are planning to invest an amount of up to £20,000, another cheap way to do it is through a stocks and shares ISA. This is a government-approved tax wrapper that protects your investment returns from both capital gains and dividend tax.

Just remember that stocks are volatile. Your investment may fluctuate in value, and you may end up with less than you put in. So, before you put money into any investment, make sure you do your homework. If you are unsure of whether an investment is appropriate for your circumstances, seek professional advice.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be considered so you should consider taking independent financial advice.

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