Domain Holdings Australia Limited [ASX:DHG] is a real estate portal that’s built up a recognisable brand across Australia. It listed on the ASX in 2017 after being separated from its previous parent company, Fairfax.
Recently, DHG has moved in price from $2.06 on 14 February to a recent high of $2.91 on 3 April. That’s a rise of 41%.
Domain Holdings has a market cap of $1.56 billion. That makes it a large company.
What’s the news behind this price move?
There have been no noticeable media reports or ASX releases which provide an obvious explanation for the move.
On 15 February, DHG released its half year results, recording a 0.3% rise in revenue to $183.9 million. That’s modest at best. It was also forced to write down the carrying value of the company because of the weak housing market. The stock has still not fully recovered from this hit to the share price at the time.
The company has obviously been forced to go through a difficult period from the slowing Australian housing market. Despite the negative headlines, it’s not unreasonable to assume the recent 40% surge in the stock is the market pricing in a more benign outcome than some extremely negative housing-related headlines suggest. DHG is a company you should continue to watch if you’re interested in the direction of Australian real estate.
This article is not an endorsement to buy or sell this stock. It’s an update only.