The Endeavour Group Ltd (ASX: EDV) share price is trading down on Thursday and currently rests 5.35% in the red at $7.25.
The alcohol and pubs company’s shares have swung between $7.25 and $7.60 today, having already come down from a high of $7.91 on 17 May.
In wider market moves, the S&P/ASX 200 Consumer Staples Index (ASX: XSJ) has also slipped around 2.25 today, while the S&P/ASX 200 Index (ASX: XJO) is down 0.5%.
What’s up with Endeavour?
The Endeavour share price is falling on the back of the company’s investor day presentation.
The company reiterated that it sees $120 million to $230 million in growth opportunities in FY23 alongside a targeted capital expenditure (CAPEX) plan of $200 million to $260 million for the year.
It’s also targeting 20 to 30 additional retail stores, while aiming to allocate some of its CAPEX spend to the acquisition of “hotels, production assets and productivity”.
In addition, the company is also looking at a dividend payout ratio of 70–75% from free cash flow “based on current expectations”.
Investors don’t appear to have welcomed the news with open arms, and instead appear to be taking a ‘glass half empty’ approach in today’s session.
The selling pressure has occurred on a volume more than 67% of the stock’s four-week trading average at more than 2.2 million shares.
As such, Endeavour now trades back in line with its February 2022 levels.
Endeavour share price snapshot
Since listing on the ASX in June 2021, the Endeavour share price has climbed around 19% into the green. It has also gained 8% this year to date.
However, it is down around 6% over the past month.
The post Why is the Endeavour share price sliding 5% on Thursday? appeared first on The Motley Fool Australia.
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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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