THG (LON:THG) Stock Price Up 17.3% - Here's What Happened

Key Points

• THG shares jumped 17.3% to GBX 32.28 on exceptionally heavy trading volume after the company raised its FY26 adjusted EBITDA forecast to approximately £103 million, above market expectations.
• Improving whey prices are supporting Myprotein’s margins, while Nutrition, UK Beauty and MP Activewear are showing momentum; THG expects its first full year of positive cash flow.
• Jefferies reaffirmed a “buy” rating with a GBX 60 price target, but risks remain from modest overall sales growth, weaker parts of Beauty, high leverage and competition in high-protein drinks.

THG Plc (LON:THG - Get Free Report)'s share price rose 17.3% on Thursday. The stock traded as high as GBX 32.76 and last traded at GBX 32.28. 397,915,844 shares were traded during trading, an increase of 2,763% from the average daily volume of 13,897,093 shares. The stock had previously closed at GBX 27.52.

Key Headlines Impacting THG

Here are the key news stories impacting THG this week:

• Positive Sentiment: Profit forecast raised: THG upgraded its FY26 adjusted EBITDA expectation to approximately £103 million, above market expectations. The company said Nutrition performance, particularly Myprotein, is driving the improvement despite only modest overall third-quarter revenue growth of 1.3%. THG Plc Upgrades FY26 Adjusted EBITDA Expectations
• Positive Sentiment: Lower whey prices should improve margins: Falling whey costs are benefiting the Myprotein business, helping THG expect its first full year of positive cash flow. This is particularly important for a company with a negative net margin and debt-to-equity ratio above 145%. THG Benefits as Whey Prices Fall
• Positive Sentiment: Core brands are showing momentum: Management highlighted strong UK Beauty and MP Activewear trends, while Nutrition demand is offsetting weaker performance in parts of the Beauty division. THG Upbeat as Core Business Sees Ongoing Momentum
• Positive Sentiment: Analyst support added to the catalyst: Jefferies reaffirmed its “buy” rating and set a GBX 60 price target, well above the recent trading range. THG Boosts Outlook, Shares Rocket
• Neutral Sentiment: Risks remain: Third-quarter sales growth was modest, Beauty was weaker than Nutrition, and increased competition in high-protein drinks could pressure future growth. Articles referring to Hanover Insurance Group use the same “THG” ticker but do not concern THG Plc.

Wall Street Analysts Forecast Growth

Separately, Jefferies Financial Group reiterated a "buy" rating and issued a GBX 60 price target on shares of THG in a research note on Thursday. One investment analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to MarketBeat.com, THG has an average rating of "Moderate Buy" and an average target price of GBX 57.50.

THG Trading Up 17.3%

The firm has a market cap of £512.24 million, a P/E ratio of -6.46, a price-to-earnings-growth ratio of -0.08 and a beta of 2.49. The business's 50 day moving average is GBX 30.10 and its 200-day moving average is GBX 31.24. The company has a quick ratio of 0.89, a current ratio of 0.89 and a debt-to-equity ratio of 145.47.

THG (LON:THG - Get Free Report) last issued its earnings results on Thursday, September 10th. The company reported GBX (3) EPS for the quarter. THG had a negative return on equity of 16.03% and a negative net margin of 3.73%. As a group, analysts forecast that THG Plc will post -6.72 earnings per share for the current fiscal year.

THG Company Profile

THG (www.thg.com) is a global innovator revolutionising how brands connect to a worldwide consumer base. We are transforming how consumer brands go to market in the digital age. We have built a portfolio of leading digital beauty, health, wellness, and sports nutrition brands that are capitalising on the global growth opportunities, supported by the accelerating consumer shift to the e-commerce channel. THG is home to three key divisions: Beauty, Nutrition, and Ingenuity. All brands, whether in-house or third parties are powered by our complete commerce division Ingenuity, which is a flexible and scalable offering formed of a combination of complex e-commerce technologies, physical assets, infrastructure, and brand building capabilities. THG Beauty is home to leading online pure-play retailers for prestige beauty products and brings together global online multi-brand retail subscription boxes, owned prestige brands along with production and innovation.

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