How to buy Redrow (RDW) shares

Learn how to easily invest in Redrow shares.

Redrow plc
LSE: RDW - GBX
RESIDENTIAL CONSTRUCTION
p681.20
+ p4.00 ( + 0.59%)

Redrow plc (RDW) is a leading residential construction business based in the UK. In the week up to 3 October Redrow shares plunged 8.43% to a closing position of 636.2p. However, over the last 12 months, Redrow's share price has risen by an impressive 52.94% from 445.4p. Redrow is listed on the London Stock Exchange (LSE) and employs 2,161 staff. All prices are listed in pence sterling.

How to buy shares in Redrow

  1. Choose a platform. If you're a beginner, our share-dealing table below can help you choose.
  2. Open your account. You'll need your ID, bank details and national insurance number.
  3. Confirm your payment details. You'll need to fund your account with a bank transfer, debit card or credit card.
  4. Search the platform for stock code: RDW in this case.
  5. Research Redrow shares. The platform should provide the latest information available.
  6. Buy your Redrow shares. It's that simple.
The whole process can take as little as 15 minutes.

How has coronavirus impacted Redrow's share price?

Since the stock market crash that started in February 2020, Redrow's share price has had significant negative movement.

Its last market close was 681.2p, which is 19.29% down on its pre-crash value of 844p and 132.49% up on the lowest point reached during the March 2020 crash when the shares fell as low as 293p.

If you had bought £1,000 worth of Redrow shares at the start of February 2020, those shares would have been worth £417.91 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth £841.01.

Redrow share price (LSE:RDW)

Use our graph to track the performance of RDW stocks over time.

Redrow shares at a glance

Information last updated 2021-10-15.
Open675.6p
High681.4p
Low675.6p
Close681.2p
Previous close677.2p
Change4p
Change %0.5907%
Volume897,195
Information last updated 2021-10-10.
52-week range393.8566p - 743.4083p
50-day moving average689.1486p
200-day moving average664.77p
Wall St. target price873.07p
PE ratio8.7527
Dividend yield24.5p (3.81%)
Earnings per share (TTM)73.6p
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Invest in Redrow shares with 0% commission

Other fees apply. Your capital is at risk.

  • Unlimited trades, with no dealing charges or management fees
  • Pay no stamp duty on UK shares (saving 0.5%)
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Capital at risk

Fees for buying 100x Redrow shares with popular platforms

Share prices fluctuate in real time, so the costs presented here should be considered as a guide only. They do not incorporate stamp duty. Always refer to the platform itself for availability and pricing – which may differ from our information.

Platform Platform fee Min. initial deposit Trading fee estimate
Freetrade logo £0 No minimum £0.00
£681.20 total
Capital at risk
eToro Free Stocks logo £0 $50 £0.00
£681.20 total
Capital at risk
Fineco logo £0 No minimum £0.00
£681.20 total
Capital at risk
Degiro Share Dealing logo £0 £0.01 £1.85
£683.05 total
Capital at risk
Hargreaves Lansdown Fund and Share Account logo £0 £1 £11.95
£693.15 total
Capital at risk
interactive investor Trading Account logo £9.99 per month No minimum £7.99
£689.19 total
Capital at risk
Halifax Share Dealing Account logo £36 per year £20 £9.50
£690.70 total
Capital at risk

Full comparison of share dealing platforms

All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.

Is it a good time to buy Redrow stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

Redrow price performance over time

Historical closes compared with the last close of 681.2p

3 months (2021-07-16) 9.80%
6 months (2021-04-16) 0.86%
1 year (2020-10-16) 52.94%
2 years (2019-10-17) 5.61%
3 years (2018-10-17) 22.64%
5 years (2016-10-17) 71.18%

Is Redrow under- or over-valued?

Valuing a stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of overall performance. However, analysts commonly use some key metrics to help gauge value.

P/E ratio

Redrow's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 9x. In other words, Redrow shares trade at around 9x recent earnings.

That's relatively low compared to, say, the trailing 12-month P/E ratio for the FTSE 250 at the end of September 2019 (19.71). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.

EBITDA

Redrow's EBITDA (earnings before interest, taxes, depreciation and amortisation) is £328 million.

The EBITDA is a measure of a Redrow's overall financial performance and is widely used to measure a its profitability.

Financials

Revenue TTM £1.9 billion
Operating margin TTM 16.81%
Gross profit TTM £419 million
Return on assets TTM 7.31%
Return on equity TTM 14.52%
Profit margin 13.1%
Book value 5.452p
Market capitalisation £2.3 billion

TTM: trailing 12 months

Redrow share dividends

3.8%

Dividend yield: 3.81% of stock value

3.8%

Forward annual dividend yield: 3.8% of stock value

39.5%

Dividend payout ratio: 39.52% of net profits

Redrow has recently paid out dividends equivalent to 3.81% of its share value annually.

Redrow has paid out, on average, around 39.52% of recent net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 3.8% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), shareholders could enjoy a 3.8% return on their shares, in the form of dividend payments. In Redrow's case, that would currently equate to about 24.5p per share.

While Redrow's payout ratio might seem fairly standard, it's worth remembering that it may be investing much of the rest of its net profits in future growth.

The latest dividend was paid out to all shareholders who bought their shares by 22 September 2021 (the "ex-dividend date").

Have Redrow's shares ever split?

Redrow's shares were split on a 20:21 basis on 7 April 2019. So if you had owned 21 shares the day before before the split, the next day you'd have owned 20 shares. This wouldn't directly have changed the overall worth of your Redrow shares – just the quantity. However, indirectly, the new 5% higher share price could have impacted the market appetite for Redrow shares which in turn could have impacted Redrow's share price.

Share price volatility

Over the last 12 months, Redrow's shares have ranged in value from as little as 393.8566p up to 743.4083p. A popular way to gauge a stock's volatility is its "beta".

RDW.LSE volatility(beta: 1.76)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share's volatility in relation to the market. The market (LSE average) beta is 1, while Redrow's is 1.7631. This would suggest that Redrow's shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).

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