The Aristocrat (ASX:ALL) share price has hit 10 new record highs in the past month

Let's examine why the gaming company has been hitting all these record highs.

| More on:
Star Entertainment share price Rising ASX share price represented by casino players throwing chips in the air

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Aristocrat Leisure Limited (ASX: ALL) share price has continued its miraculous run today.

Shares in the gaming technology giant soared to a new record high today after hitting a high of $49.02.

In the past month alone, shares in Aristocrat have hit 10 new record highs.

Let's take a look at what's been fuelling the Aristocrat share price.

What's propelling the Aristocrat share price?

Shares in Aristocrat have managed to shrug off COVID-19 induced lockdowns and restrictions.

Although its traditional gaming machines have struggled, the gaming giant has maintained growth through its digital gaming business.  

Aristocrat's strong performance during turbulent times was somewhat at odds with it's recent half-year report for FY21.

For the 6 months ending 31 March 2021, the company saw its operating revenues fall 1% to $2.23 billion.

Gross profit for the half-year also decreased 3.5% to $1.13 billion.

However, Aristocrat buoyed its report by reporting an 18.4% increase in net profit after tax (NPAT) of $362.2 million.

As noted, Aristocrat cited substantial growth in its digital segment for the increase in profits.

For the first half, 54% of group revenue was generated from the company's digital gaming business.

In addition, the company highlighted that it ranks in the top 5 mobile game players across Tier 1 western markets.

The company did not provide guidance for the full-year, however Aristocrat's management plans to enhance its market-leading position in casino gaming operations. In addition, the gaming giant plans to drive further growth in its digital games business.

More on the Aristocrat share price

Since the start of the year, shares in Aristocrat have soared more than 50%.

By comparison, the S&P/ASX 200 Index (ASX: XJO) has only managed to claw 12% higher in 2021.

The gaming giant expects further investment and growth in its digital bookings.

Aristocrat's user acquisition investment is expected to be above the historic range of 25% and 28% of overall digital revenues.  

The company's growth outlook has also been supported by numerous brokers and analysts.

Recently, leading broker Citi released a bullish outlook on the company, initiating a buy rating of a $46 share price target.

Analysts noted that Aristocrat's digital business and traditional gaming segments are pulling together.

At the time of writing, shares in Aristocrat are currently up more than 3% for the day at a record high of $48.26.

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

asx share price boosted by us investment represented by hand waving US flag across winning athlete
Best Shares

Here are the best-performing ASX 200 shares since the US election result

We reveal the 10 ASX stocks that have had the highest share price gains since the US Presidential election.

Read more »

a man sits back from his laptop computer with both hands behind his head feeling happy to see the Brambles share price moving significantly higher today
Industrials Shares

Up 39% in a year, is there more growth to come for this ASX 200 share?

IML Equity Analyst Josh Freiman shares his views on a major ASX 200 industrial stock.

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Catapult, Flight Centre, Nufarm, and Xero shares are storming higher today

These shares are having a strong session on Thursday. But why? Let's find out.

Read more »

drug capsule opening up to reveal dollar signs signifying rising asx share price
Healthcare Shares

3 ASX healthcare shares going gangbusters on Thursday

Investors are sending these ASX healthcare stocks soaring today. But why?

Read more »

A young man talks tech on his phone while looking at a laptop. A financial graph is superimposed across the image.
Share Gainers

Here are the top 10 ASX 200 shares today

The ASX 200 made it three-for-three losses in a row this Wednesday.

Read more »

A young woman wearing overalls and a yellow t-shirt kicks one leg in the air showing excitement over the latest ASX 200 shares to hit 52-week highs
Share Gainers

Why Brickworks, James Hardie, Megaport, and OFX shares are charging higher today

These shares are having a good time on hump day. But why?

Read more »

Fancy font saying top ten surrounded by gold leaf set against a dark background of glittering stars.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors endured another day of selling this Tuesday.

Read more »

Man pointing at a blue rising share price graph.
Technology Shares

Guess which ASX 300 tech stock is already up 64% in November!

The ASX 300 tech stock is surging higher this month. But why?

Read more »