How to trade Persimmon stock: a complete guide

Learn all about Persimmon, including its company history, share price performance, trading hours, and how to trade Persimmon share CFDs with Capital.com.

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What is Persimmon?

Persimmon is one of the UK’s largest housebuilding companies, specialising in the construction of residential properties. Founded in 1972, the company operates across the UK, developing new homes under brands like Persimmon Homes, Charles Church, and Westbury Partnerships. As a key player in the property sector, Persimmon's financial performance is closely tied to the UK housing market, mortgage rates, and broader economic conditions.

Persimmon stock: key points for CFD traders

• Stock information: Persimmon is listed on the London Stock Exchange (LSE) and you can trade the Persimmon share price under the ticker PSN.
• Business model: the company generates revenue through the sale of newly built residential properties, with a focus on affordability and large-scale developments.
• Market factors: Persimmon’s stock performance is influenced by housing demand, government policies on homeownership, interest rates, and economic conditions.
• Competitors: it competes with other major housebuilders, including Barratt Developments, Taylor Wimpey, and Bellway.
• Recent challenges: Persimmon has faced headwinds from rising construction costs, mortgage affordability concerns, and fluctuations in housing demand – all contributing to stock price volatility and potential trading opportunities.

What is Persimmon’s share price history?

Persimmon’s share price has experienced significant fluctuations over the years, reflecting changes in the UK housing market and broader economic cycles. The company has been publicly traded since 1985, with its stock price rising and falling in response to trends in homeownership, mortgage availability, and government incentives.

Housing boom and strong growth

During the early 2000s, Persimmon’s share price benefited from a booming UK property market. Low interest rates by historical standards, rising house prices, and strong demand for new homes drove the stock higher. By 2007, shares reached an all-time high of over £15, reflecting optimism about the UK housing sector.

Financial crisis and recovery

However, the 2008 financial crisis hit the housing market hard, leading to a sharp drop in Persimmon’s stock. As property prices collapsed and mortgage availability tightened, shares fell below £3. The company rebounded in the years that followed, as government schemes like Help to Buy boosted demand for new homes.

Post-pandemic surge and inflation pressures

During the COVID-19 pandemic, record-low interest rates and increased demand for suburban housing led to a surge in homebuilding stocks, with Persimmon’s share price climbing back above £30 by 2021. However, rising inflation and higher mortgage rates in 2022 and 2023 put pressure on the housing market, causing shares to retreat.

Current outlook

Persimmon continues to navigate market challenges, including affordability concerns and material cost inflation. Investors remain focused on mortgage trends, government policies, and homebuyer demand as key drivers of Persimmon’s stock performance.

Past performance is not a reliable indicator of future results.

What factors might affect the Persimmon live share price?

Persimmon’s share price is influenced by a range of factors, including housing market conditions, economic trends, and company performance.

Housing demand and mortgage availability

As one of the UK’s largest housebuilders, Persimmon’s revenue is closely tied to the availability and affordability of mortgages. Higher interest rates can make borrowing more expensive, reducing demand for new homes, while government schemes supporting first-time buyers can have the opposite effect. A slowdown in home sales due to affordability concerns can weigh on Persimmon’s stock price.

Construction costs and supply chain challenges

The cost of materials and labour directly affects Persimmon’s profit margins. Rising prices for essential building materials such as timber, steel, and concrete can increase costs, while supply chain disruptions may delay project completion. If the company struggles to pass these costs onto homebuyers, it could impact profitability and investor confidence.

Financial performance and earnings reports

Quarterly earnings reports provide insights into Persimmon’s home sales, revenue growth, and profitability. Strong results and positive forward guidance can drive the share price higher, while weaker-than-expected earnings, declining margins, or reduced dividend payouts may lead to stock declines. Investors also watch order books for signs of future demand. Financial guidance along with market analysis during earnings can help you understand progress and future outlook. 

Government policies and regulations

Changes in housing policies, planning regulations, and taxation can significantly impact Persimmon’s operations. Planning restrictions that slow the development of new sites or policies requiring more affordable housing within projects can affect profitability. Government incentives, such as stamp duty reductions, can boost homebuyer demand and support stock performance.

Macroeconomic conditions and inflation

Economic factors like inflation, GDP growth, and employment levels influence consumer confidence and home-buying activity. Rising inflation can increase the cost of living, making it harder for buyers to afford new homes. If the economy weakens, demand for new housing may decline, negatively impacting Persimmon’s stock.

Competitor performance and sector trends

Persimmon competes with other major housebuilders like Barratt Developments and Taylor Wimpey. If competitors report stronger sales, lower costs, or better land acquisition strategies, Persimmon’s stock may face downward pressure. Broader trends in the construction and real estate sectors also influence investor sentiment.

By tracking these factors, traders can gain a better understanding of what may drive Persimmon’s share price movements and identify potential trading opportunities.

What are Persimmon’s stock trading hours?

If you trade CFDs, you can monitor Persimmon’s stock performance in real time using our interactive share price chart. Keeping track of market activity and housing sector updates can help identify potential trading opportunities.

How to trade Persimmon shares with CFDs

If you want to take a position on Persimmon shares, you have two options:

1. Buying shares: you can purchase Persimmon stock through a stockbroker, taking direct ownership and benefiting if the price rises.
2. Trading CFDs: contracts for difference (CFDs) allow you to speculate on Persimmon’s stock price movements without owning the shares. CFDs provide the flexibility to take both long and short positions, enabling traders to respond to market fluctuations.

Using leverage

A key difference between buying Persimmon shares outright and trading CFDs is leverage. CFDs are typically traded on margin, meaning you can gain larger exposure with a smaller initial outlay. This amplifies both potential profits and losses, making leveraged trading a high-risk approach.

To start trading Persimmon stock CFDs with us, sign up for a Capital.com account. Once verified, you can trade via our advanced web platform or intuitive mobile app.

Learn more about contracts for difference in our CFDs trading guide.

Trading Persimmon with fundamental analysis

Persimmon is one of the UK’s largest housebuilders, meaning its share price is influenced by both company-specific and broader economic factors. Some key fundamental analysis factors to be mindful of when trading Persimmon CFDs include:

• UK housing market trends – house prices, mortgage rates, and demand for new-build homes can all affect Persimmon’s performance.
• Interest rates and inflation – as a property developer, Persimmon is sensitive to changes in borrowing costs and consumer affordability. Lower interest rates typically support housebuilders, while higher rates can weigh on demand.
• Company earnings and updates – regular trading statements and financial results provide insights into Persimmon’s sales, profit margins, and forward guidance.
• Government policies and incentives – schemes like Help to Buy or changes to property taxes can impact housing demand and Persimmon’s sales outlook.

Trading Persimmon with technical analysis

Additionally, you might want to use technical analysis to identify key market levels, such as support and resistance zones, moving averages, and price patterns. These tools can help determine potential entry and exit points when trading Persimmon CFDs.

You can use basic strategies like trend, breakout, and range trading to navigate Persimmon share price movements. Trend trading follows Persimmon’s broader direction, such as long-term declines driven by shifting consumer spending or upswings after strong earnings. Breakout trading targets price moves beyond key resistance or support, often seen after major company updates. Range trading focuses on Persimmon’s repeated price fluctuations, common when the stock stabilises between earnings reports.

Technical indicators like RSI and MACD help identify trends, while fundamental factors such as earnings results, retail sector performance, and consumer sentiment shifts play a key role. Stay updated on the wider fundamentals with our news and analysis, and learn more about technical analysis.

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Why trade Persimmon CFDs with Capital.com?

Trading Persimmon CFDs with Capital.com means you’ll enjoy an intuitive, friendly-to-use platform, 24/7 support, fair and transparent pricing, along with award-winning education to help build your experience in the markets.* You can seamlessly integrate our smart platform with elite third-party software TradingView and MT4, and refine your strategies with our risk-free demo. 

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