Print Published 12th Sep 2017, 08:05

Whither WPP or will it wither?

WPP’s shares have lost a modest 1.49% of their value since the company announced its half year results a fortnight ago and issued a gloomy downgrade of its revenue growth expectations for 2017 to somewhere between zero and 0.2% on a like-for-like basis (see WPP downgrades revenue predictions: currencies help first half).

But since the start of the year WPP’s share price has declined by 23%, suggesting that investors have been more eager to sell shares in the company than to buy them.

WPP share price to 11 Sep 17

Perhaps more significant is the fact that the most recent price decline has occurred despite WPP making daily purchases of its own shares in the market. Since announcing the revenue downgrade on 24 August the company has been buying about 350,000 shares each day at a cumulative cost of around £60 million, and rising.