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

A man sits thoughtfully on the couch with a laptop on his lap.
Share Gainers

3 ASX 200 stocks smashing the benchmark this week

These three ASX 200 stocks are leading the charge this week. Here’s how.

Read more »

A young woman holding her phone smiles broadly and looks excited, after receiving good news.
Share Gainers

Why A2 Milk, EOS, GQG, and Mineral Resources shares are racing higher today

These shares are ending the week strongly. But why?

Read more »

A man wearing a red jacket and mountain hiking clothes stands at the top of a mountain peak and looks out over countless mountain ranges.
Share Gainers

Here are the top 10 ASX 200 shares today

It was another disappointing day for ASX investors this Thursday.

Read more »

two men smiling with a laptop in front of them, symbolising a rising share price.
Share Gainers

Why Pinnacle, PWR, Race Oncology, and Vulcan shares are flying today

These shares are having a good session on Thursday. But why?

Read more »

A beautiful woman holds up one finger with one hand and has her hand on her waist with the other as she smiles widely as though she is very pleased about something.
Share Gainers

Why Boss Energy, Emeco, Mineral Resources, and Plenti shares are pushing higher today

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

Read more »

Three small children reach up to hold a toy rocket high above their heads in a green field with a blue sky above them.
Share Gainers

3 ASX 300 shares going gangbusters on Wednesday

Investors are bidding up these three ASX 300 shares today. But why?

Read more »

Man raising both his arms in the air with a piggy bank on his lap, symbolising a record high.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a huge Tuesday for ASX shares, with the index resetting its record high.

Read more »

Woman holding gold bar and cheering.
Gold

Why are ASX gold shares rebounding today?

ASX investors are going for gold today.

Read more »