Why is the Beacon Lighting (ASX:BLX) share price jumping 7% to record highs?

Beacon turned on the party lights to end the week with a record high share price…

| More on:
Happy woman stringing lights at an outside party.

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

What better way to end the week than to set an all-time high. That is exactly what the Beacon Lighting Group Ltd (ASX: BLX) share price ended up doing today.

At the end of Friday's session, shares in the lighting retailer were 6.82% higher to $2.35. However, the surging share price reached an intraday high of $2.41 around lunchtime — cementing a new record high price for the company. Prior to this, we would have to go all the way back to 2015 to see a share price close to this.

While the achievement is notable, the catalyst for the rise is somewhat a mystery. Though, there are a couple of points that could be worth looking at.

Stability brought to management

This afternoon, an announcement was released relating to performance rights and options in the company. According to the release, a total of 215,352 performance rights with a zero exercise price have been issued to Beacon Lighting executives.

Furthermore, these options have an expiration date of 24 June 2031. Though, the important detail is that two-thirds of these options will be subject to terms of employment. Namely, the executives will need to still be employed on 19 August 2022 and 19 August 2023 to exercise these issued options.

Perhaps investors were optimistic about this news, as it incentivises the current management team to stay right where they are, rather than suddenly upending themselves. Hence, the options incentive can help reduce volatility inside the company, which would be good for the Beacon Lighting share price.

Additionally, the results of the company's annual general meeting were decided on Tuesday. The outcomes included the re-election of deputy chair Eric Barr; adoption of the remuneration report; and the issuing of performance rights to CEO Glen Robinson.

Beacon Lighting share price snapshot

Shareholders of the lighting retailer have far exceeded benchmark returns over the 12 months. Specifically, the Beacon Lighting share price has returned 80.8% in the past year. For context, the S&P/ASX 200 Index (ASX: XJO) gained 20% during the same timeframe.

In addition, the company not only kept paying shareholders dividends but also increased the payments in 2021. Total dividends paid this year are 8.8 cents per share — representing a 76% increase on 2020.

Motley Fool contributor Mitchell Lawler 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 52-Week Highs

Five happy friends enjoying a party.
52-Week Highs

5 ASX 200 shares smashing new 52-week highs today

The Trump tariff relief rally has helped send these five ASX 200 shares to new 52-week highs.

Read more »

Arrows pointing upwards with a man pointing his finger at one.
52-Week Highs

3 ASX All Ords shares at new 52-week highs this Friday

These shares are proving to be a safe harbour this Friday.

Read more »

An excited man stretches his arms out above his head as he reaches a mountain peak representing two ASX 200 shares reaching multi-year high prices today
52-Week Highs

These 4 ASX 200 shares just clocked new 52-week highs today

These shares are standing out from the crowd today.

Read more »

Ecstatic woman looking at her phone outside with her fist pumped.
52-Week Highs

8 ASX 300 shares hitting new price highs today

New share price records were set despite the broader market trading in the red.

Read more »

Three people jumping cheerfully in clear sunny weather.
52-Week Highs

5 ASX 200 stocks hitting new 52-week highs today

These stocks are pushing higher today despite the shaky market...

Read more »

Piggy bank rocketing.
52-Week Highs

ASX shares lifting to 52-week highs on Friday

Do you own any of today's winners?

Read more »

Man raising both his arms in the air with a piggy bank on his lap, symbolising a record high.
52-Week Highs

These 9 ASX 200 shares just hit new 52-week highs

Let's check them out.

Read more »

Man on a ladder drawing an increasing line on a chalk board symbolising a rising share price.
52-Week Highs

6 ASX 200 shares hitting new 52-week highs today

These shares are defying today's market sell-off.

Read more »