HCA Market Close: 23.11.22
HCA Market Close 23.11.22 – Scandinavian Medical Solutions gains on insider purchases, while Penneo announced its Q3 22 earnings, declining on slower growth.
Market Movements:
Denmark: OMX:C25 (+0.44%) ; Sweden: OMX:S30 (+0.63%) ; Norway: OBX:OSL (+0.71%) ; S&P 500 (+0.23%) ; Nasdaq (+0.41%); Stoxx 600 (+0.60%)
Market Drivers:
Markets gained today as treasury yields and the dollar fell on weak economic data, as bad news is good news.
The recent market rally has been driven in large part by falling treasury yields and a weaker dollar. Today’s move was no different, as weaker-than-expected US PMI data (46.3) showed that US business activity contracted for the month of November. The weaker economic data suggests the Fed’s rate hikes are taking effect and bringing down inflation; in turn, expectations of a Fed pivot increased, sending markets higher.
In Germany, the PMI data surprised to the upside, actually increasing for the month of November, increasing to 46.4 from 45.1 in October. A number above 50 suggests that manufacturing and services are expanding.
Snacks from the HCA Platform:
Following the announcement of Scandinavian Medical Solutions’ annual report for 2021/2022 this Monday, Scandinavian Medical Solutions has reported new insider transactions. Today, the company announced that the board member Morten Rasmussen has acquired 47.796 shares for a total value of DKK 261.878, corresponding to an average share price of approx. DKK 5.48. Moreover, Scandinavian Medical Solutions’ largest shareholder and CEO, Jens Krohn, has acquired 50,000 shares for DKK 5.50 per share from Head of Sales Martin Lind. Earlier this week, it was also announced that Jens Krohn sold 10% of the share capital (total value of DKK 12,698,500 to the institutional investor, Nordic Compound Invest (managed by Jakob Have) at DKK 4.66 per share. Jakob Have is also on selection to become a new board member at the upcoming general meeting on 8 December 2022. The transaction date was Monday (21 November) after the announcement of the annual report. The share gained 9.2% in today’s trading.
This morning, Penneo announced its Q3 report. Total ARR increased to DKK 65.0m by the end of the quarter, corresponding to a growth rate of 29% YoY. Penneo maintains its recent ARR guidance (downgraded in October) and EBITDA guidance for 2022. In Q3 2022, Penneo’s growth has been lower than the previous quarters due to uncertain market conditions. Consequently, Penneo has gained a lower number of new customers and delivered a lower ARR uplift (15%) on existing customers compared to recent quarters. However, Average Revenue Per Account (ARPA) was stable at DKK 25,288, and the churn rate is still low at approx. 3%. With ARR uplift of 15% and churn rate of 3%, the net ARR retention rate was 112%. The share declined 5.1% in today's trading.
Disclaimer: HC Andersen Capital receives payment from the companies for a #DigitalIR agreement./ Philip Coombes 18:10