Will Ocado's shares continue to fly in September?

By John Reynolds on Friday 3 September 2021

Will Ocado's shares continue to fly in September?
Image source: Movement of shares/ Pexels
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Shares in Just Eat Takeaway were up over seven per cent in the week, Ocado around level, while shares in Waitr nudged down.

Shares in Just Eat Takeaway were up 7.3 per cent to 6,907p in the week, despite confirmation that the company will leave the FTSE 100 on September 20, following a quarterly review of the changes to the index.

FTSE Russell, which recommends which companies should join or lose their position in London’s premier equity index, has  "reassigned" it as a Dutch firm, no longer a UK firm.

Just Eat Takeaway had been eligible for the FTSE, as the company said it would delist from Euronext Amsterdam, but subsequently backtracked on the decision.

Rules for membership in the FTSE 100 dictate that London needs to account for the majority of share volume for the stock.

Elsewhere, shares in Ocado ended up around level in the week at 2,038p but they had jumped in the first few days in September, gaining 3.6 per cent in one day.

Shares in the online supermarket had enjoyed a strong run in the second half of August, climbing over 16 per cent.

Prior to the August surge, Barclays said Ocado was “excessively high” and cut its 12-month price target to 1,575p.

Investors will be keeping a close eye to see if the August bounce continues in September.

Elsewhere, shares in Waitr, the US on-demand food ordering firm, were down 0.7 per cent to $1.28 in the week after it acquired payment processing companies ProMerchant, Flow Payments and Cape Cod Merchant Services in the US.

Waitr board chairman and CEO Carl Grimstad said: “The acquisition of these innovative payment companies are part of our growth strategy to offer a full suite of payment processing services to our current base of restaurants and any restaurant in the future.

“Our goal is to be able to offer a suite of payment services to our ecosystem partners, including loyalty programmes, gift cards, payment processing and merchant lending.

“We view these acquisitions as an important step in pursuing this strategy and we believe this could lead to significant growth for Waitr in the future.”

The financial details of the deal have not been disclosed.