Pagegroup (LSE: PAGE) stock is on my watchlist. So, I noticed when its share price had slid 7.1% so far today. The UK stocks markets are up today, except for the AIM All Share Index. In particular the FTSE 250 is up, and Page is a member of this index.
The next thing to look at is the company’s investor website in particular its regulatory news page. Nothing there. The last item was an announcement of an interactive investor event to be held in the afternoon of 6 June, 2023.
Perhaps analysts that had attended the even had heard something they didn’t like and had only just made their thoughts public. But, if they had I can can’t see where. I was stumped. How about other decliners. The five biggest decliners in the FTSE All Share Index today are Robert Walters, Entain, Pagegroup, Hays and De La Rue.
The job market
Ah. There’s something. Pagegroup is a UK based specialist recruitment consultancy company. Robert Walters is a UK based global recruitment consultancy. Hays is another UK based recruitment company.
So, it’s something industry specific then. Since the Robert Walters share price fell the most, it might have released something. And it did. A trading update came out today. It was bleak. Management said that its full year profit is likely to be below what the market expects. Net fee income fell in the last quarter because it is taking longer to place candidates because employers are freezing hiring due to recession fears, high inflation, and the impact of the Ukraine conflict. But, have these concerns not been present for at least a year?
The report also highlights how wage inflation (perhaps better expressed as growth) remains solid, candidates are still in short supply compared to openings, and people are still moving between jobs. I see mixed messages here. But, the market has punished Pagegroup and Hays, figuring that they will, sooner or later, release reports that also warn on profits.
DISCLAIMER: James J. McCombie does not own any of the shares mentioned. The Storied Investor has no beneficial ownership position in any of the stocks or securities mentioned. No comment in this article should be construed as a recommendation of, or opinion regarding the future performance of, any stock or security or collection of them mentioned herein. Opinions expressed are the author’s and do not represent the views of The Storied Investor.
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