Shares of online trading firm Plus500 Ltd (LSE: PLUS) added 15p to 438p in early trade, after retail investors took advantage of a buying opportunity when JPMorgan offloaded a tranche of shares.
In a trading update earlier this month, Plus500 reported strong EBITDA margins, underpinned by increasing average revenue per user and improvements in the effectiveness of the company’s marketing efforts.
The shares have sold off sharply since mid June, falling by over 20%, which caused the company to issue a statement on the share price weakness on Tuesday:
“The Company notes the recent weakness in its share price and wishes to confirm to the market that it doesn’t know of any operational or financial reason for such weakness.”
Revenue and profit in the second quarter are ahead of analyst forecasts and the board offered cautiously optimistic outlook for the full year.
Prior to today, City experts were expecting Plus500’s upcoming annual results to reveal earnings per share of 49p. Following this morning’s price movement the shares may therefore trade on a P/E of 9.
Mark Stones has no position in any shares mentioned. The Motley Fool has no position in any of the shares mentioned.