This assignment covers contemporary theoretical concepts with practical accounting task application based on the topics from the subject. Task Details:. Students are then required to select an asx...

ANALYSIS OF SHARE PRICE MOVEMENTS
ANALYSIS OF SHARE PRICE MOVEMENTS    3
FROM:
DATE:
SUBJECT: ANALYSIS OF SHARE PRICE MOVEMENTS
Brief Introduction about Company:
Qantas Airways Limited was formed in the Queensland in 1920 and the company has become the largest domestic and international airline of the Australia. It was originally registered as the Queensland and Northern Te
itory Aerial Services Limited (QANTAS). The company is widely considered as the world largest and leading long-distance airline and among the best and strongest
and in Australia. The Company has built a reputation for having excellent safety, reliability and customer service. The company is having main business of the transportation of the customers through its two complementary airline
ands which includes Qantas and Jetstar. The Company also operates its various subsidiary businesses such as catering. The airline
and of the company operates regional, domestic and international services. The
oad portfolio of the subsidiary businesses of the company ranges from Freight Enterprise to Qantas Frequent Flyer.
Analysis of the share price movement of the company for the last two years:
The price of the company increased by huge margin on 04th May 2018 from 5.69 AUD to 6.31 AUD due to announcement made by the company on ASX regarding Q3 results. The company announced that the quarter three revenue went up by 7.5% comparing with preceding period. The company also ordered 6 additional dreamliners for replacement of 747s Boeings. The CEO presented a strong future outlook of the company which resulted increase in share price tremendously. On 15th May 2017, the company issued an announcement of ASX regarding rating upgrade by Moody’s investor service from Baa3 to Baa2 (Stable credit rating). The credit rating issuer upgraded the unsecured debt and backed senior unsecured bank credit facility rating which resulted increase in share price of the company. The share price started rised and reached at 5.72 AUD per share on 30th June 2017 from 3.94 AUD on dated 21st April 2017.The rating improvement impacted the company positively and the share price increased by huge margin in almost two months only. On May 9, 2019 the share price of the company decreased by huge margin because the company issued the results of Q3 FY 19 and the revenue was increased with very slow margin in comparison to previous year and it resulted decreased in share price from 6.15 AUD to 5.41 AUD. The share price over a period of 2-3 years can be understood from below chart and table:
    Date of share price
    Share price (AUD)
    21-Apr-17
    3.94
    30-Jun-17
    5.72
    23-Feb-18
    5.73
    27-Apr-18
    5.69
    04-May-18
    6.31
    29-Jun-18
    6.16
    20-Jul-18
    6.81
    26-Oct-18
    5.23
    18-Jan-19
    6.15
    10-May-19
    5.41

In the above table and graph, we can see that the share price of the Qantas Airways Limited has shown volatile fluctuations as well as stable over the period of two year. The share price in April 2017 started to rise and it was stable from the period July 2017 to April 2018. In July 2018 the share price increased by huge margin and again in Oct 2018 it declined by huge margin. The more...