Saga plc is a British company that provides insurance, package tours, cruise holidays, and personal finance services in the United Kingdom for those aged over 50. The company was founded in 1950 and was formerly known as Saga Limited, however, in 2014 the company has officially changed its name to Saga plc. Saga has more than 2.7 million customers and has announced a total revenue of £841.50M in 2019. But is it the right time to buy Saga shares?
In this guide, we cover everything you need to know about investing in Saga. This includes some background information on the company and its share performance, reviews of the best UK share brokers, and a step-by-step walkthrough of how you can buy Saga shares today.
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3 Quick Steps to Buy Saga Shares
If you are ready to buy Saga shares but don’t have time to read our full guide, below you’ll see three quick steps that you need to follow to buy Saga shares right now:
Step 1: Find an online broker
Choose a broker that offers share trading on the London Stock Exchange.
Step 2: Deposit Money
Add funds to your brokerage account using a debit/credit card, e-wallet, or bank transfer.
Step 3: Buy Saga Shares
Search for Saga shares, enter how much you want to invest, and click ‘Buy’.
75% of retail investors lose money when trading CFDs with this provider.
Where to Buy Saga Shares
The most common way for UK investors to buy shares is to find a registered broker that connects clients to the London Stock Exchange. This way, you will be able to place an order to buy Saga shares and you will get physical securities that allow you to become a shareholder of this company. However, there are many stock brokers to choose from, so finding the right one for you isn’t always easy.
To help you out, we’ve reviewed the top UK brokers that allow you to buy Saga shares.
1. eToro - Social Broker with Over 800 Shares and No Commission
eToro is a market leading broker that made its name as a pioneering social trading platform that also offers copy trading tools. This means that you will be able to connect with other members, of which there are over 12 million, get trading ideas, and use the CopyTrader feature that allows you to copy the portfolios of other top traders in the community.
This broker offers over 800 shares from 17 different top exchanges including the London Stock Exchange. Unlike many brokers, eToro allows you to both buy Saga shares in the traditional sense and via CFDs. If you trade share CFDs, you can trade with a leverage ratio of 1:5 and you will still receive a dividend payment if you own the contract before the ex-date.
There’s no commission to pay on eToro, and it also offers very competitive spreads. You can get started with a minimum deposit of $200, and there are a range of payment methods accepted, including e-wallets such as PayPal. You can also try the platform for free with the demo account.
eToro is licensed by the FCA, as well as other leading bodies like CySEC and ASIC, so you can be sure it’s a very secure and trustworthy platform. If you want to buy Saga shares on your mobile, you can do so via eToro’s excellent app for iOS and Android devices.
- Social and copy trading
- Buy shares or trade CFDs
- 0% commission
- Accepts PayPal
- Does not support a professional trading platform
2. Capital.com - AI Trading Platform with Low Spreads
Founded in 2016, Capital.com is a well-known CFD broker that offers buying and selling of currencies, shares, indices, commodities, and cryptocurrencies. This broker takes pride in its innovative trading platform that has won numerous awards and an AI-powered trading platform that is able to detect trading ideas based on your preferences.
Capital.com offers an array of 2000 shares from various exchanges across the globe including the London Stock Exchange. This broker doesn’t charge any commissions for share trading, and the spreads are also some of the tightest on the market.
If you’re a beginner looking to learn the ropes, Capital.com is a good choice because of its many educational resources. These include guides, courses and webinars, while there are also excellent resources, such as Capital.com TV.
Another interesting feature of Capital.com is that it offers an AI-powered trading platform. This includes a AI trading robot that scans the market for trading opportunities, and you can customise the robot in line with your trading style and goals.
- Over 2,000 Shares
- Offers an AI-powered trading platform
- Low minimum deposit requirement
- Charges an overnight fee on CFDs
Why Invest in Saga?
So far, it’s been a painful journey for Saga as shares have fallen 61% in 2020 only. Investors’ confidence in the company is low and the company is facing many challenges ahead. But Saga has recently released its earnings reports that gave investors new hopes. Further, there’s no doubt that the Saga share price is relatively cheap and the company has huge growth potential, which can eventually lead to a greater increase in its share price and value for investors.
If you are still doubting about whether or not to buy Saga shares, let’s take a look at some of the reasons as to why you should invest in this company:
Saga Offers a Wide Range of Services and Products
We cannot ignore the fact that Saga plc is in a delicate financial situation. In the past, the company had a niche role in the market for clients aged over 50, but Saga’s management team has realized that the company must adapt and expanded its overall range of services and products.
As a result, Saga operates in three segments (Insurance, Travel, and Emerging Businesses) and delivers a huge range of insurance packages, tours & cruise holiday products, and personal finance solutions for all ages and purposes.
Saga also runs the UK’s best selling monthly magazine, the Saga Magazine, which has a total circulation of 627,000 and a monthly readership of over one million. This fundamental shift in Saga’s strategy can change the direction of the company.
Another reason for buying shares of Saga is that the company pays dividends to its shareholders. In 2020, investors of Saga received a dividend yield of 3.10%, and the company, so far, has shown a track record of consistent payments.
Saga plc states on its website that dividends typically paid twice a year, and these can be paid directly to investors’ bank accounts or clients can reinvest the dividends through a Dividend Reinvestment Plan (DP).
Saga insurance business has started the year well and is not expected to be negatively impacted by the coronavirus outbreak. Overall, the company has reported solid results with revenues of £797.30, almost in line with analysts’ expectations.
Although the consensus from analysts about Saga’s revenues in 2021 reflects a decline of 33% in sales, the company is expected to turn profitable in the next year, with earnings per share of £0.03. This is possible mainly due to the management efforts to reduce costs and shift the company’s income to other sources.
Looking ahead, analysts predict that the company is expected to significantly increase its sales in 2023. Having said that, time will how Saga will be affected by the COVID-19, and whether the company can prevail a second wave of the virus.
About Saga Shares
Company and Share History
Saga was founded in 1951 by Sidney de Haan who had the vision to create a travel company from a hotel in Folkestone, Kent. The initial service offered by Saga was off-peak low-budget holidays to retired people. But throughout the years, the company expanded its products and services and nowadays operates in three divisions: travel, insurance, and emerging businesses.
The Insurance business is the most profitable division of Saga Group. The company offers packages of a motor, home, travel, pet, Private Medical Insurance (‘PMI’), and many more. Saga also offers clients a wide range of holiday experiences with a focus on Saga cruises and built-in vacation packages. Lastly, the company has recently developed a new division called Emerging Businesses division which comprises Personal Finance and domiciliary Healthcare services.
In addition, Saga distributes a subscription magazine called the Saga Magazine, which has an estimated circulation of 627,000. The Saga magazine has been said to be the “United Kingdom’s biggest selling monthly subscription title”.
As of 2019, Saga has 4,120 employees and 2.7 million customers. The company went public in 2014 and is listed on the London Stock Exchange (LSE) under the ticker symbol SAGA.L. Saga has a total market capitalization of $231.581M.
Saga Share Price History and Performance
Saga plc shares trade on the London Stock Exchange since the 23 of May 2014. The share price of Saga reached its all-time high of £$225.30 back in September 2019, but the truth is that overall, the stock has been in a downtrend since its IPO, and currently trades at £20.64, a bit higher than the all-time low of £14.50.
The saga share price was highly affected by the coronavirus pandemic outbreak early on this year as the company’s main income derives from traveling and tourism. So far in 2020, the company’s Year-To-Date (YTD) return is -61.74% and its one-year return is -44%. Nevertheless, buying at the bottom can be rewarding. Saga plc is expected to turn profitable company soon with a solid balance sheet and strong operational performance. Further, most analysts predict that the share price of Saga is expected to recover by the end of the year.
How to Buy Saga Shares on eToro
Now we’ve given you some background information on Saga, you may want to invest for yourself. If you do want to buy Saga shares, we’re now going to walk you through the process of doing so with our recommended broker, eToro.
If you choose to buy Saga shares on a different platform, the process will remain similar.
Step 1: Search for Saga Shares
First, you’ll have to visit eToro’s website and sign up for a free trading account. Then, fill in your personal detail, submit the necessary documentation that verifies your identity, and deposit funds through one of the provided methods.
Once your account has been approved and the funds are visible in your account balance, simply navigate to the search bar at the top of the screen and click ‘Saga’.
Step 2: Click on ‘Trade’
You will be immediately transferred to the Saga share page where you can analyze the stock and place a buying order. Whenever you are ready to buy Saga shares, click on ‘Trade’ to open a new order.
Step 3: Buy Saga Shares
Finally, you can set an order and send it to the markets. There are several things you’ll need to set before entering a buying trade. Those include the amount of the trade, in addition to the leverage ratio, the type of order (market or limit order), and a stop-loss rate if you’re trading CFDs. When you are confident with the parameters, click on the ‘Open Trade’ button.
Should I Buy Saga Shares?
Saga plc is not only a diversified company but also a company that offers an essential service for its main target audience of those aged 50 and above. This company has been operating since 1951 and has developed a wide range of products and services that include insurance products, package tours & cruise holiday, personal finance, and many more.
True, the company is facing some major challenges, reflected by the drop in its share price, ut the company’s stability is something investors should take into consideration. The fact that Saga share is trading near its all-time low can be a concern for new and existing investors, however, it is also an investment opportunity. According to MarketBeat, the consensus price target is £40.33 and the Financial Time has a median share price forecast of £47.50, at the time of writing. That is an increase of 130.1%.
If you do want to buy Saga shares, we recommend doing so with our recommended broker, eToro. With no commission, over 800 global shares and innovative copy trading tools, eToro is a great place to invest in shares online. Simply click the link below to get started today!
eToro: Buy Shares with 0% Commission
- Buy over 800 global shares
- No commission and tight spreads
- Social and copy trading tools
- Accepts PayPal
- FCA regulated
What are the advantages of trading Saga shares through CFDs?
Some of the advantages of trading share CFDs include a high leverage ratio, low daily margin requirements, easy registration process, and the ability to buy and sell short the stock with having any restrictions.
Does Saga plc issue a dividend to shareholders?
Yes, Saga pays out a dividend to its shareholders, usually twice a year. According to Saga, an investor can receive the dividend directly to the bank account or reinvest the dividend capital through the company's Dividend Reinvestment Plan (DRIP).
Will Saga plc shares recover?
At the time of writing, Saga plc shares are trading at historically low levels. However, the coronavirus outbreak had a direct impact on the company's income and it appears that the share price has reached its bottom. Further, most analysts predict that the share price of Saga plc will recover by the end of 2020.