How to Buy Rightmove Shares UK – with 0% Commission

Although Rightmove (RMV) was founded as recently as 2000 – the property website has already attracted a huge multi-billion pound market cap on the London Stock Exchange. With that said, Rightmove shares are still yet to fully recover from the wider impact of the coronavirus pandemic – so there is every chance that you can still invest at a discount. In this guide, we show you how to buy Rightmove shares UK with a commission-free FCA broker.

Step 1: Find a UK Stock Broker to Buy Rightmove Shares

As noted above, Rightmove shares are listed on the London Stock Exchange. This means that you will have dozens of potential brokers to choose from when it comes to making an investment online.

To save you from having to research the best stock brokers that give you access to Rightmove shares – below you will find a selection of top-rated trading platforms to choose from.

Step 2: Research Rightmove PLC Shares

As is the case with any investment you are considering, you should research the ins and outs of Rightmove shares before making a financial commitment. This will ensure that you are investing in a company that has a good chance of making you money in the long run.

In the sections below, we offer a wealth of information that will help you decide whether or not Rightmove shares should be added to your investment portfolio.

Rightmove Share Price History & Market Capitalisation

Rightmove is the UK’s largest real estate website – with the platform listing properties that are currently available to buy and rent. The website also provides a good source of information on market trends, house prices, and wider real estate developments. Founded in 2000, Rightmove first went public in 2006 – a mere 6 years after the website was launched. This illustrates just how quickly the company has grown.

Opting for the London Stock Exchange, Rightmove shares initially floated at £3.35 per stock. However, this amounts to an actual price of 33.5p – as the firm initiated a 1-to-10 stock split in 2018. This means that for every 1 share held before the split, an additional 9 were distributed to stockholders. Taking the split into account, Rightmove shares have performed exceptionally well since the company became a PLC in 2006.

For example, Rightmove shares hit new all-time highs in early 2020 – breaching the 690p level. This means that in just 14 years of trading, early Rightmove shareholders were looking at gains of almost 2,000%. Naturally, and much like the rest of the real estate industry, Rightmove was heavily impacted by the pandemic. In terms of its share price, lows of 420p were hit in March 2020. This is a decline of 39% from the prior highs hit just two months earlier.

With that said, the recovery of Rightmove shares since the pandemic has been very good. In fact, Rightmove shares hit 683p in October 2020 – just 7p short of their previous highs. Since then, the stocks have been somewhat flat, with the shares priced at 574p at the time of writing. This means that there is a potential short-term upside of 20% – based on pre-pandemic levels. Ultimately, Rightmove was on a strong upward trajectory before the first lockdown measures – so this is the longer-term target.

Rightmove EPS and P/E Ratio

When it comes to key accounting ratios, Rightmove reported an EPS of 12.60p for its fiscal year ending 2020. This is down from the 19.57 EPS achieved in the previous year. Additionally, Rightmove shares are currently trading with a P/E ratio of 45.65.

Rightmove Shares Dividend Information

Rightmove is a dividend-paying company, so this a way of growing your money in addition to a share price increase. For the year ending 2020 – Rightmove paid a dividend of 4.5p per share. For the year ending 2019, dividends were canceled. Based on prices at the time of writing, Rightmove shares are paying a trailing dividend yield of 0.78%.

Should I Buy Rightmove Shares?

There are many factors to consider before you buy Rightmove shares UK. After all, when deciding whether or not to invest in a company, you need to ask yourself whether the shares offer value. In order to do this, you need to look at the fundamentals surrounding the firm’s performance in recent months and years.

Below you will find a number of core metrics that should be considered before buying Rightmove shares.

Pre-Pandemic Performance and Post-Recovery

It is fair to say that the impact of the coronavirus lockdown measures was no fault of Rightmove. As such, the way in which its shares capitulated in early 2020 should in many ways be overlooked. In fact, it would be more logical to evaluate how the shares were performing before the pandemic came to fruition.

So, in 12 months prior to Rightmove shares peaking in February 2020, the stocks were trading at 479p. When the shares hit all-time highs of 690p just 1-year later, this amounted to an increase of 44%. This illustrates that there was a strong upward momentum and so it remains to be seen where the stocks would have reached been without the pandemic.

Nevertheless, we should make it clear that Rightmove shares did recover very quickly after the rapid collapse in Q1 2020. In fact, the property website managed to recover most of its pandemic-related losses by October 2020.

Market Share

Rightmove holds by far the lion’s share of the UK property website arena – with recent figures putting this at 80%. During the lockdown, the platform saw a year-on-year increase of 31% in website traffic. In terms of the financials, net profit margins have averaged 58% over the past five years – which is very healthy indeed.

Crucially, the Rightmove business model is expected to continue growing in the long-term, with more and more people moving away from conventional brick and mortar real estate agents.

Rightmove Shares Buy or Sell?

The general market sentiment on Rightmove shares is positive. The firm experienced a rapid stock price loss in the midst of the pandemic last year. But, the shares have recovered well.

Furthermore, and perhaps most importantly, Rightmove shares were on a solid upward trajectory before the coronavirus came to fruition, so there is no reason to believe that this will not resume in the medium-to-long term. As always, just make sure you perform your own independent research before you buy Rightmove shares UK.

Buy Rightmove Shares With Zero Commission

This guide has explained how to buy Rightmove shares UK from the comfort of your home. When using top-rated broker,  you’ll be able to complete the investment process without paying a single penny in dealing commissions or stamp duty tax.

FAQs