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.
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.
If you’re looking for the best UK stock broker to buy Rightmove shares – look no further than eToro. Home to more than 20 million investors – eToro is now the go-to platform to invest in the UK. In fact, not only does eToro allow you to buy Rightmove shares UK at the click of a button – but thousands of other equities across 17 marketplaces.
This includes exchanges in the UK, Europe, Asia, the US, and more. When it comes to fees, eToro allows you to buy shares without paying any dealing fees or commissions. Furthermore, you will not be required to pay stamp duty tax on your purchase, as this is waivered by eToro. This means that you will save an additional 0.5%.
There are no ongoing fees charged by eToro either. This means that you can keep hold of your Rightmove shares for as long as you wish and not pay a penny in fees. The minimum amount that you can invest in Rightmove at eToro is $50 – or about £37 GBP. Other asset classes supported by eToro include forex, commodities, ETFs, and indices. In other key areas of the platform, eToro is often referred to as a Social Trading site.
This is because you can communicate with other traders using the site in a similar nature to Facebook. Whether you want to follow a trader, ‘Like’ a comment, and publish your own investment ideas – this can be achieved at eToro. Plus, the broker also offers a Copy Trading tool, which allows you to invest passively. This is because you will be copying a successful eToro trader of your choosing.
Past performance is not an indication of future results.
In terms of the fundamentals, the process of opening an account and making a deposit should take you no more than 5-10 minutes. You can deposit funds with a debit card, credit card, or bank transfer. E-wallets are also supported – which is inclusive of Paypal, Skrill, and Neteller. The minimum first-time deposit for UK investors is just $200 – or about £140. Finally, eToro is authorized and regulated by the FCA, and your capital is protected by the FSCS.
67% of retail investor accounts lose money when trading CFDs with this provider.
Although eToro is likely the best option for the vast majority of you if you wish to invest in Rightmove shares in the long run, Capital.com is a great option for short-term speculators. That is to say, if you are looking to enter and exit a Rightmove stock position over the course of days or weeks, it might be worth considering the CFD and spread betting markets on offer.
Both options at Capital.com allow you to speculate on the future value of Rightmove shares without taking ownership. Instead, you will be trading a financial derivative that tracks the real-world price of the firm. In doing so, you will have access to leverage of up to 1:5. As such, a £200 account balance would allow you to enter a Rightmove stock position worth £1,000. Another benefit of using Capital.com to trade Rightmove shares is that you can attempt to profit from both rising and falling markets.
For example, if you think the price of Rightmove shares will increase, you simply need to place a buy. Alternatively, if you think the shares will go down in value, you can place a sell order. Either way, Capital.com allows you to trade without paying any commissions. In terms of the spread, this is typically very competitive. For example, at the time of writing, the platform is quoting a buy and sell price of 572p and 576p – which amounts to a spread of 0.69%.
We should also note that if you trade Rightmove shares via the Capital.com spread betting facility, all profits will be exempt from capital gains tax. When it comes to core features, Capital.com offers a free demo trading account. This allows you to try CFD trading or spread betting in a risk-free manner. If you want to start off with real money trading, the minimum deposit is just £20. Supported payment methods include debit/credit cards, e-wallets, and bank transfers – and Capital.com is regulated by the FCA.
- Educational app for new traders
- Commission-free trading
- Tight spreads
- Leverage offered
- AI assistant identifies your weak points
- Excellent charting and analysis interface
- £20 minimum deposit
- Cannot build custom investment strategies
- CFDs only
75.26% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider.
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 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 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%.
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.
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.
Step 3: Open an Account and Deposit Funds
If you have conducted plenty of research and are now ready to buy Rightmove shares UK - the next step is to open an account with an online stock broker or stock trading app. As we covered earlier in our broker reviews, eToro is by far the best share dealing platform to buy Rightmove shares. This is because the FCA-regulated broker charges no share dealing fees and it even waivers stamp duty tax.
So, visit the eToro website and open an account. You will be asked to enter your personal information, contact details, and national insurance number. You will need to verify your mobile number by entering the code that eToro sends you via SMS. You will also need to create a username and a strong password.
Next, eToro will ask you to go through a quick KYC (Know Your Customer) process. This is to ensure the platform complies with the FCA's regulations on anti-money laundering. All you need to do is upload a copy of your passport/driver's license and proof of address. The latter can be a utility bill or bank account statement issued within the last three months.
Note: You can upload the KYC documents later, as long as you are not planning to deposit more than $2,250 (about £1,600).
Now you can deposit some investment funds into your eToro account. The platform supports debit cards, credit cards, Paypal, Skrill, bank transfers, and more.
If you have followed our step-by-step instructions on how to buy Rightmove shares on eToro, then you should now have a fully-funded account. If so, you can now proceed to buy Rightmove shares UK by searching for the company. When you see Rightmove appear from the search results, click on the 'Trade' button.
Finally, you will need to complete an order form. To do this, enter the size of your investment into the 'Amount' box. This must be entered in US dollars and the minimum is $25 per trade.
Once you click on the 'Open Trade' button, your Rightmove shares will be added to your eToro portfolio!
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.
This guide has explained how to buy Rightmove shares UK from the comfort of your home. When using top-rated broker eToro, you'll be able to complete the investment process without paying a single penny in dealing commissions or stamp duty tax.
Getting started at eToro takes minutes, you can instantly deposit funds with a debit/credit card or e-wallet, and your capital is protected by the FSCS.
67% of retail investor accounts lose money when trading CFDs with this provider.
What is Rightmove?
Rightmove is a UK-based website that lists properties that are for sale or rent. You can view a wealth of information about listed properties, which allows you to find a suitable home without initially needing to go through a third-party agent. As of Q2 2021, Rightmove has an 80% market share in the UK property website arena.
What stock exchange are Rightmove shares listed on?
Rightmove shares are listed on the London Stock Exchange (LSE) - as they have been since 2006. Rightmove is also a constituent of the FTSE 100 Index.
Does Rightmove pay dividends?
Yes, Rightmove does pay dividends. Although it canceled its 2019 payment, Rightmove recently paid a 2020 year-end dividend of 4.5p per share.
How does Rightmove make money?
Rightmove makes money in several key areas. At the forefront of this is the fees it charges to real estate agents that wish to list their properties on the Rightmove website.
Has Rightmove done a stock split?
Yes, Rightmove initiated its first and only stock split in 2018. The firm opted for a split at a ratio of 1:10.
Who is the Chief Executive Director of Rightmove?
Peter Brooks-Johnson is the current CEO of Rightmove and has been in the position since May 2017.
Can I invest in Rightmove shares via an ISA or SIPP?
Yes, like all equities, Rightmove shares are eligible for both ISAs and Sipps.