After Converge ICT Solutions, Inc. released its first-quarter earnings report, investors started buying its stock.

During the week from May 17 to 21, a total of 47.16 million shares, which is worth P924.87 million, changed hands on the Philippine Stock Exchange. In addition, the fiber internet service company became the seventh-most frequently traded stock last week, having just been purchased by a new owner.

It rose by 10.3% per week on the stock market, up to Friday, May 14, when it reached P20.4 per share. The stock rose by 35.3% during the start of the week.

in the first quarter of 2021. (-0.2 percent ).

A significant uptick in subscribers along with the current pandemic epidemic contributed to Converge reporting nearly triple the P1.55 billion in attributable net profits in the first quarter compared to P573.60 million in the same time last year.

In the first quarter of the year, total sales rose 83.2% to P5.55 billion from P3.03 billion in 2020.

In the first three months of the year, household coverage rose to 28.3 percent from 24.5 percent in the fourth quarter of 2020 and 14.5 percent in the first quarter of 2020.

He stated that the increase in household coverage has given investors the reassurance they need to believe the group is on track to meet its goal of providing 55% household coverage by 2025.

Converge foresees a 55% year-on-year rise in sales for the firm this year, thanks to a year-on-year topline growth of over 84%.

As for the subscription base, it went from about 1.04 million to 1.18 million during the year, up from 615,466 in the previous quarter and 1.04 million in the first quarter of 2015.

Aniceto K. Pangan, Diversified Securities, Inc. said in a text message that the current lockdowns would keep promoting demand for broadband internet, since it “dominates” the everyday way of life.

The majority of investors are on the sidelines due to the uncertainty in the market with its price near its 52-week high of P21.20, but some are still interested in investing in the stock, said the investor.

In regards to its immediate assistance and resistance rate, Mr. Pangan set the stock’s levels at P19.82 and P20.45, respectively.

PNB’s Mr. Latuja stated that the firm does not have technical analysis for stocks but that the target price of P22.6 per share “over the next six to 12 months” is the estimated value for the stock.

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