Persimmon stock: robust order book and higher completions prompt 2.19% decline

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Persimmon drops 2.19% to GBX 1,383.50

Highlights

Persimmon delivered 11,905 homes for 2025, marking a 12% year-on-year increase and exceeding market expectations for completions.
The company projects underlying profit before tax at the upper end of previous forecasts, driven by a stronger order book and more outlet openings.
Persimmon invested about £60 million in building safety remediation and declared no dividend this period to conserve cash amid ongoing housing market volatility.

Profit forecast lifted and no dividend as cash conservation takes priority

Persimmon reported a 12% year-on-year rise in total home completions for 2025, delivering 11,905 homes and surpassing market expectations. The company expects its underlying profit before tax to be at the upper end of prior forecasts, reflecting a stronger order book and more outlet openings, while it also invested about £60 million in building safety remediation for the year. No dividend was declared this period to conserve cash amid continued housing market volatility.

Mixed momentum and overbought signals as price tests key supports

From a technical perspective, PSN is well-supported above key moving averages, with the Ichimoku Kijun (GBX 1,352.09) acting as dynamic support and immediate resistance at the MA-50 and the recent high near GBX 1,453. Momentum signals are mixed but lean bullish: both ADX and MACD generate a Buy, while the RSI at 73.73 and overbought readings from the Stochastic RSI and CCI suggest short-term caution. Bull/Bear Power remains positive, and the Awesome Oscillator also confirms buying pressure. After a positive open with a small gap up (GBX 1,414.50 previous close to GBX 1,431.50 open), the price has moved lower and is now near the daily low (GBX 1,379.34), signaling increased volatility and possible profit-taking despite the overall bullish context.

Consolidation favored barring breakout as volatility guides outlook

Short-term, PSN is likely to remain within a typical volatility band of GBX 1,370 to GBX 1,400, with a strong likelihood (over 80%) of maintaining or building on current levels. Sideways consolidation around GBX 1,380 – 1,390 is the base case. A clear upside break above resistance near GBX 1,450 would suggest renewed gains, while a decisive close below GBX 1,350 could trigger a deeper retracement toward medium-term averages.

Anton Kharitonov, expert at Traders Union, sees PSN holding near key supports despite today’s drop. He notes the technical setup leans bullish, but overbought oscillators and absent dividend keep him cautious. Strength in completions and order book is positive, yet price action signals potential for near-term consolidation or a pullback if GBX 1,350 breaks. "Base case remains a sideways range near GBX 1,380 – 1,390; I stay defensive here unless the stock firmly reclaims momentum above GBX 1,450."

Previously it was reported that Persimmon Plc is trading firmly above all major moving averages with strong bullish momentum, as confirmed by MACD and ADX, though key oscillators indicate overbought conditions. Despite elevated price levels and buyer dominance, consolidation near current levels is expected, with further gains likely if resistance is breached and downside risks rising only if support is broken.

Source of Data: PSN Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.