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Share Price Movement in the Case of Qinetiq Company

Essay by   •  May 6, 2016  •  Case Study  •  837 Words (4 Pages)  •  1,137 Views

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Share price movement is an essential aspect in the stock market regarding the cause of price to change. It is notable that appreciations of elements that motivate the stock price change facilitate anticipation and determining the direction as well as the velocity of the price movement. In an analysis of an allocated share movement during a period it was tracked it is important to understand the relevant theories that explain the extent the share moved in response to new information in the market. In the context of QINETIQ share price (QQ.), the share price tracked from April 15th to April 25th exhibits movement of a share price with the different volume of shares traded. The share price tracked entailed the following

Date Share price

April 15th 223.7

April 18th 223.0

April 19th 223.5

April 20th 224.0

April 21st 219.9

April 22nd 224.3

April 25th 225.0

It is notable that for the ten days period the share prices showed a significant price movement attributed to the conditions and information in the stock market. In the above tracked share prices it is evident that the share price on date 15th to date 18th dropped by 0.7, on date 18th to date 20th there was an increase by 1, there was a sharp decrease on date 20th to date 21st by 4.1 followed by a sharp increase on date 22nd by 4.4 and on date 25th the share price increased by 0.6.

Taking into account the above tracked share prices, it is evident that the price movements are not totally random and it is argued by many stock market scholars that the price trend. It is also important to acknowledge that there are periods that the share prices do not trend. Therefore, analyzing the share prices during a period it is tracked needs utilization of essential information that is captured by the price to facilitate interpretation of what the market depicts with the purpose of formulating a view of the future behavior of the stock market. It is notable that QINETIQ share price movements are largely attributed to new information. According to @ new information provides the market a reason to value a stock at a specific share price. Based on the information that the public is aware of the market prices a particular stock, as new information is received in public realm the market adjust share prices based on how the market perceives the information.

Concerning QINETIQ share price the information flows from the company to the public through the issuance of news and the public learns about significant new information. The underlying provided technical analysis is essential for the investors regarding identifying the signs that any new information is being priced into the stock

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