The stock price of Manchester United PLC (NYSE: MANU) continued its upward trend on Wednesday, November 23, gaining another $3.86 (25.84%) to close at $18.80 nearly climbing as high 44% in just two days of trading.

Manchester United announced on November 22 that its board had begun a process to “explore strategic alternatives” for the club. The report indicated that a strategic investigation was being conducted, which may go as far as selling the club and, in turn, is making investors enthusiastic about this stock.

“As part of this process, the Board will consider all strategic alternatives, including new investment into the club, a sale, or other transactions involving the Company,” Man U stated.

MANU chart and analysis

There are positive signs in the very recent evolution of MANU stock. A new 52-week high is currently being made, which is a good signal, especially since the S&P500 is only trading in the middle part of its 52-week range, so the stock is leading the market.

At the time of publication, MANU was trading well above all its simple moving averages (SMA), and in the last month, MANU has been trading in the $12.55 – $18.91 range and is currently trading near the high of this range.

MANU SMA lines: Source. Finviz data. See more stocks here.

Volume has also been considerably higher in the last couple of days, something investors like to see during a strong upwards move. However, Manchester United does not offer a high-quality setup at the moment. Prices have been extended to the upside lately,  so it may be a good idea to wait for a consolidation or pullback before considering an entry.

Manchester United stock technical analysis

MANU stocks technical analysis (TA) indicators on the 1-day gauges are all notably bullish. The summary gauge points to a ‘strong buy’ sentiment at 17; meanwhile, moving averages (MA) suggest a ‘strong buy’ at 14.

MANU 1-day technical analysis. Source: TradingView

In addition, the oscillators indicate a ‘buy’ sentiment at three, according to the data obtained from the market analytics platform TradingView on November 24. Meanwhile, on Wall Street, three analysts giving a year price target to MANU estimate an average price of $16.30, a 13.29% decrease from Manchester United’s current stock price.

MANU 12 month price target. Source: TradingView

The consensus rating for the stock is a ‘buy’ based on its performance over the last three months, with two analysts advocating a ‘strong buy’ and the other analyst is suggesting ‘hold.’ As part of the process, numerous projects will need to be evaluated, including reconstruction of the stadium and other infrastructure and expansion of commercial activities worldwide. 

The Executive co-Chairmen and Directors Avram Glazer and Joel Glazer have said that during this process, they would continue to focus on serving the best interests of their fans, stockholders, and other diverse stakeholders. This announcement comes after a protracted period of discontent on the part of fans with ownership. 

Earlier on Tuesday, November 22, Manchester United’s stock fell somewhat as the club announced it would part ways with star player Cristiano Ronaldo after a controversial interview he gave. Still, the most recent developments seem to be positive for both fans and investors.

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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk. 

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