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Year On Year Analysis Of A2 Milk Share Price

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A2 Milk Company has listed to the Australian Stock Exchange (ASX) in the Year 2000.  The predecessor of A2 Milk Company was A2 Corporation limited. A2 comes with the formula for milk without A1 protein. This helps them to create infant milk formula which reduces the bloating effects in children. A1 protein-free milk is the intellectual property of A2 Milk Company which allows them to produce A1 free milk exclusively and able to gain a reputation of a market leader in the same category. With increasing sales numbers and remarkable financial performance, the share price for A2 milk shares asx is a safe investment.

Today the share price of A2 milk is AUD 13.85 in the Australian Stock Exchange (ASX). It has witnessed some decline in the last 2 months, coming down from 15.96 in the month of April 2019. But comparing today’s share price from the same date last year, it is still a 30% increase. The share price on 29 Jun 2018 was AUD 10.52, which fallen to AUD 8.34 in the month of October 2018. But in 2019, A2 share price has seen significant growth and it is predicted to be anchoring between the ranges of AUD 14- AUD 16 for the year 2019. This stability of the share price will be supported by company financial performance history. From the year 2016 till now, the company managed to increase its revenue up to 3 times. The first half of FY 2019 also shown a remarkable growth of 42%. These numbers can consolidate company market position and share price.

According to reports of Australian stock Exchanges, A2 milk has a market capitalization of 10.82 billion. Earnings per share are 0.322 cents per share with earnings yields of 2.32%. According to share volume traded, an average of 3.2 million shares. It fairly seems that A2 milk share is marketable share and have a strong trading tendency. Due to this volume turnover, there has been a 7% increase in share price in the Month of June only. At the start of the month, shares were trading at AUD 13.09 but on month’s closing, they are at AUD 13.85.

Currently, A2 milk price seems to be an attractive investment for shareholders. As company performance is stable and growth perspective is high. One more attractive number is 30.54%, which is a 1-year return on the share’s investment. This means a person can get a profit of 30 cents on each dollar invested, which is a very high return with minimum risk.

In long terms, when the company is spending on intellectual property and marketing, they are set to consolidate their position in this category. In the future, they have plans to launch other products in the same category to increase their product and customer base. So keeping in mind, short term investment or long term investment in A2 milk share will be a sensible financial endeavor. 

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