Knowing which stocks to invest in is undoubtedly one of the biggest challenges facing UK investors. And while past performance is not an indicator of future results, it’s interesting to see which stocks are snapped up by investors, especially when it comes to stocks that have recently tumbled.
So, let’s explore the stocks that have been popular buys among UK investors over the past week.
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Which shares have UK investors been buying recently?
Here are the most popular shares among Hargreaves Lansdown clients in the UK last week, in terms of the value of deals.
|Position||Company||Industry||% of total stocks traded|
|1||Tesla Inc||Car manufacturing||3.36|
|2||Boohoo Group||Online fashion||2.94|
|3||iShares Plc||Exchange-traded funds||2.28|
|4||International Consolidated Airlines Group SA||International travel||1.88|
|5||Scottish Mortgage Investment Trust plc||Mortgage trusts||1.86|
|6||Rolls Royce Holdings Plc||Aerospace||1.85|
|7||Lloyds Banking Group plc||Banking||1.44|
|8||Glencore plc||Commodity trading||1.32|
|9||Vanguard Funds plc||Investment platforms||1.24|
What can we learn about the three most popular buys?
Tesla, Boohoo Group, and iShares Plc were the three most popular shares to buy among UK investors last week. These companies accounted for a massive 8.58% of total shares bought among Hargreaves Lansdown clients.
Let’s take a look at these shares in more detail.
Followers of this list will be unsurprised by Tesla claiming the top spot again. That’s because the electric car manufacturer – made famous by its eccentric founder, Elon Musk – is often a popular pick among Hargreaves Lansdown traders.
Aside from the fact that Tesla is involved in a growing industry, its share price is known for its wild volatility.
Over the past seven days, Tesla’s share price has gone from $958 (£713.92) to $1,088 (£810.80). That’s a healthy increase of 13.5%. However, since the turn of December, its share price has actually fallen. On 1 December, a Tesla share was valued at $1,095, compared to $1,088 today – a fall of 0.63%. Despite these recent movements, Tesla shares are up a massive 49.15% since the turn of 2021.
Because Tesla is almost always featured on a list of the most bought shares, it’s no secret that traders are attracted by its volatility. That’s because many active investors look to buy Tesla stock in order to make a quick buck from sharp movements in its share price.
2. Boohoo Group
It’s been a horrid year for the Boohoo Group share price, with its value falling 63.37% in the space of a year, and 25.6% since the beginning of December!
Reasons cited for this dismal performance include poor first-half results, reduced earnings estimates, and new competition. For example, some analysts believe Chinese retailer ‘Shein’ could continue to increase its market share in the online fashion sector, due to its ability to undercut rivals.
Another reason given for Boohoo’s poor share price performance this year is the fact that many believe the company will be hit hard by rising inflation. That’s because higher inflation increases the costs of production. This can lead to higher prices, which can reduce customer demand.
Despite a nightmarish 2021, Boohoo’s current share price of £1.26 is clearly being considered a bargain by many UK investors. Those who have recently snapped up Boohoo stock will be hoping the retailer’s share price has the ability to bounce back to £3.40, where it stood at the beginning of the year.
3. iShares Plc
iShares is a collection of exchange-traded funds (ETFs) that are managed by BlackRock. It’s another popular inclusion on the list of most bought shares, and it’s fair to say that investors in the firm have enjoyed a decent 2021.
Since the turn of the year, the iShares Plc share price is up a respectable 13.36%. That’s a tad above the FTSE 100 average of 13.12%.
Unlike Tesla and Boohoo, the iShares Plc share price hasn’t shown much volatility in 2021. Instead, it has generally headed upwards over the past year, aside from two slumps in July and September.
As a result, those buying iShares Plc over the past seven days are likely to include traders content with ‘slow and steady’ returns.
Why should we look at this data?
Taking a look at what UK investors have been buying recently can be an interesting way to determine whether Brits have an appetite for volatile or stable stocks. It can also show us whether UK investors believe certain stocks are undervalued.
That being said, new investors should always take this data with a pinch of salt, and not use it to make any investing decisions of their own. If you are new to investing and you’re keen to learn more, then The Motley Fool’s Investing Basics is a good place to start.
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