Rightmove has begun trading as a FTSE 250 company after losing its place in the FTSE 100, capping a difficult period for the property portal’s share price.
The shares closed at 417.9p on Friday, down 1.35% on the day and around 2% over the week, ahead of the index reshuffle taking effect at today’s market open. Rightmove’s removal from the FTSE 100 follows a prolonged decline in its share price, which is down almost 20% since the start of the year and nearly 46% over the past 12 months.
While the demotion reflects index ranking rules rather than any immediate deterioration in the company’s trading performance, it is expected to trigger portfolio adjustments by funds that track the FTSE 100 and FTSE 250 indices.
Investor sentiment towards the business has nevertheless been tested by several developments in recent months, including the announcement of a £60m artificial intelligence investment programme, pressure from activist shareholders and a £1.5bn legal claim filed earlier this year.
Rightmove listed on the London Stock Exchange in 2006 with a market value of around £425m and grew to become one of the UK’s most valuable listed property companies. Its shares reached record highs in 2021, giving the business a market capitalisation of approximately £6.7bn.
However, the company’s valuation has come under pressure since it rejected four takeover approaches from REA Group in 2024, the highest of which valued Rightmove at £6.2bn. Following REA’s withdrawal, the share price fell sharply and has remained well below the level implied by the final offer. Rightmove’s current market value is around £3.1bn.
Despite the share price weakness, the company continues to dominate the UK property portal market. In May, Rightmove said it accounted for more than 80% of consumer time spent on UK property portals compared with its main rivals. The company has also maintained its guidance for revenue growth of 8% to 10% in 2026 and expects operating profit growth of between 3% and 5% as it increases investment in artificial intelligence and new products.
Investors are likely to focus on whether those investments can strengthen Rightmove’s market position while maintaining profitability. The company is next due to update the market when it publishes its half-year results on 31 July.
Read the orginal article: https://propertyindustryeye.com/rightmove-share-price-falls-after-ftse-100-exit/
