There are different reasons for investors deciding to sell shares in some of their UK-listed stocks. It might be because the original long-term investing thesis has changed. Perhaps it’s due to seeing better value elsewhere.
Let’s find out why these three Fools parted ways with some of their investments.
boohoo Group
What it does: boohoo Group designs, markets and sells clothing, shoes, accessories and beauty products in the UK and abroad.
By Paul Summers: As much as I hate to admit defeat, I recently dumped my shares in battered fast-fashion firm boohoo (LSE: BOO).
My timing may turn out to be spectacularly bad. A cut in interest rates this year could bring buyers back to the growth stock. The company also owns a truckload of recognisable brands, such as Debenhams, where trading may improve.
However, I misjudged just how much of the threat rivals like Chinese juggernaut Shein would become when I bought. Tellingly, younger and far more stylish members of my own family no longer visit the company’s site. Questionable corporate governance has long been an issue too.
One saving grace to all this is that I previously banked some great profits on boohoo shares. But this latest experience has served as a fresh reminder that nothing lasts forever and that staying diversified is essential as a retail investor.
Paul Summers has no position in Boohoo Group.
Rightmove
What it does: Rightmove operates the UK’s largest property search platform.
By Ben McPoland. I don’t often sell stocks but towards the end of last year I offloaded my holding in UK stalwart, Rightmove (LSE: RMV). It was just before the shares plunged in response to CoStar Group acquiring rival UK property website OnTheMarket. Obviously I had no inkling this sell-off would happen and thought it was a bizarre market overreaction.
Anyway, the share price has now rebounded and we’re back to a 1.5% dividend yield. Revenue and profits have been averaging around 6% since 2017, and I eventually found this underwhelming.
The new(ish) CEO has promised to get that ticking upwards. If so, that should help the share price, which has stagnated for the last four years.
Now, I should say that I still think Rightmove is a terrific company. It has around an 85% share of the UK property search market and boasts incredible profit margins.
Perhaps greedily, I just wanted more bang for my buck (or pound sterling). So I used the cash to invest in Ashtead Technology for faster growth and Legal & General for the ultra-high-yield dividends.
Ben McPoland owns shares of Ashtead Technology and Legal & General but has no position in CoStar Group or Rightmove.
Rolls-Royce Holdings
What it does: Rolls-Royce designs, develops and manufactures aircraft and helicopter engines, combat jet engines, large commercial aircraft, unmanned aerial vehicle engines, and nuclear reactors.
By Harvey Jones. I mostly buy dirt-cheap, high yielding UK dividend stocks that I plan to hold for years and years. My purchase of Rolls-Royce (LSE: RR.) in October 2022 was a rare exception. It was cheap, yes, but wasn’t paying a dividend (and still isn’t).
I decided that after crashing by three quarters, its stock was ripe for a recovery. People were flying again after Covid lockdowns yet the Rolls-Royce share price was still idling on the runway.
It looked risky, though, and I only bought a small stake. Sadly. One year later, I was up 179%.
I needed some ready cash in October and decided to take the win. I felt Rolls-Royce shares had flown too far.
They jumped another 30% in the month that followed, but I’m comfortable with my decision.
The group now faces headwinds as new CEO Tufan Erginbilgiç battles to drive up prices despite pushback from key customers Emirates and Thai Airways. If the stock dips, I’ll hop on board because I think the longer-term outlook is positive. It’s just overpriced today. Next time, I’ll buy it for keeps.
Harvey Jones has no position in Rolls-Royce Holdings.
