Mirvac Shares Look To Breakout As Financials Improve

Mirvac shares (ASX: MGR) added 6.32% on Wednesday to close at $1.85, on what was a heavy trading day for the stock (35.85 million shares changing hands). MGR breaking above the stubborn A$1.80-1.82 resistance zone, on a day in which 4.82x the average daily volume was traded, suggests there is plenty of reason for bulls to be optimistic into today’s open, even if the longer term trend suggests a cautious approach.

Looking at the FT26 earnings results, NPAT of $508 million reflected a tidy 7% Y/Y growth rate, whilst gearing of 24.1% was also a substantial improvement on the 27.6% previously reported. Occupancy of 98% across the investment portfolio was strong, and gross margins improved to 24%.

A buyback of $200 million, and earnings per share of ~13.3cents as a target for FY27 helped round out a solid print for MGR bulls, who continue to nurse declines of 20.26% over the past 12 months.

From a technical standpoint, the session produced a clean breakout to the upper Bollinger Band, which sits at $1.85 against a mid-band of $1.77 and a lower band of $1.69. Band width of around 8.8% suggests the stock had been in a relatively compressed range before today’s expansion. Closing above the upper band on heavy volume is the kind of signal that can attract momentum buyers into the stock, with a breakout above stubborn resistance will also be of interest to the same cohort.

We would be looking for the reaction in today’s session for clues about what comes next, as ideally there would be continuation of the break, with supportive volume.

With the Mirvac share price now 14% up from the lows of two months ago, the longer-term downtrend is now facing a real test. Expect bulls and bears to battle for control around the breakout level.