How to buy and short The Hut Group shares

How to buy The Hut Group shares

You can buy shares in The Hut Group (THG) using derivatives like CFDs. Here, you won’t own the stocks outright but you will be able to profit if the company’s share price rises. This is called ‘going long’. Derivatives enable you to trade on margin, meaning you’d only need to put down a small deposit to get full market exposure.

To buy The Hut Group’s shares, follow these easy steps:

Trading The Hut Group shares

1. Create or log in to your trading account and go to our trading platform
2. Search for ‘THG Holdings Ltd’
3. Choose your position size
4. Select ‘buy’ and monitor your trade

With CFDs, you can speculate on its share price, which will allow you to:

• Get full exposure with a 20%-25% deposit on almost all of our tier-one shares¹
• Hedge your positions and offset losses against profits for tax purposes²

How to short-sell The Hut Group shares

You can also short-sell The Hut Group’s shares with CFDs if you think the share price is going to fall. If you predict this correctly, you’ll make a profit.

Follow these steps to sell The Hut Group shares:

Shorting The Hut Group shares

1. Create or log in to your trading account and go to our trading platform
2. Search for ‘THG Holdings Ltd’
3. Choose your position size
4. Click 'sell' in the deal ticket
5. Confirm and monitor your short position

The Hut Group’s live market prices

The Hut Group shares: the basics

Established in 2004 and headquartered in Manchester, UK, The Hut Group is listed on the London Stock Exchange (LSE) with the ticker symbol ‘THG’.

The company went public in September 2020 after a successful initial public offering (IPO) valued at £5.4 billion – the largest in the UK for the year. Concerns were, however, raised over the company’s corporate governance structure ahead of its listing.

Co-founder Matthew Moulding serves as both company chief executive officer (CEO) and chairman – vesting him with superior voting powers compared to executives at most other LSE-listed companies. Despite these concerns, THG’s shares rose by 30% on its first day of trading.

What is The Hut Group’s business model?

The Hut Group specialises in ecommerce, selling its own range of beauty and nutrition products. The company also licenses its platforms to third parties, and provides data analysis and product development to thousands of other brands across the globe.

The Hut Group is divided into four business units:

• Beauty: consists of seven premium brands in the skincare, haircare and makeup segments, as well as Glossybox, its burgeoning subscription box service
• Nutrition: products include vitamins and minerals, protein bars and shakes under the well-known Myprotein brand
• Ingenuity: end-to-end solutions including product development, marketing, content creation and customer service
• Other: comprises lifestyle brands from home décor and luxury fashion, to gadgets and gaming

The Hut Group key personnel: who manages the company?

There are six people on The Hut Group board of directors:

How to analyse The Hut Group’s share price

To analyse The Hut Group’s share price accurately, you need to consider both fundamental and technical analysis.

Fundamental analysis looks at macroeconomic factors and helps you determine if shares are over- or underpriced. These factors include the cost of production as well as supply and demand.

You can use the following metrics to conduct fundamental analysis on THG's shares:

• Price-to-earnings ratio (P/E ratio)
• Return on equity (ROE)
• Earnings per share (EPS)

Technical analysis uses historical price data and technical indicators to determine what the market will do in the future. The following indicators are popular with traders:

• Parabolic stop and reverse (SAR)
• Moving averages
• Relative strength index (RSI)

It’s important to use both types of analysis when making a decision to go long or short on The Hut Group’s shares.

Buying The Hut Group shares summed up

• If you think The Hut Group share price will increase, buy shares with derivatives
• If you think the company’s share price will decrease, short-sell shares with derivatives
• Using derivatives like CFDs enables you to take a position without owning any underlying assets
• Use fundamental and technical analysis to determine whether you should go long or short when opening a position on The Hut Group

Footnotes:

¹ Deposit on leveraged trades are 20%-25% for 99.14% of tier-one shares (correct as of 1 June 2020). For more information, view our share trading margin rates.