Why the Lark (ASX:LRK) share price just jumped 26% to a new all-time high

Investors are drinking up the craft distiller’s shares on Wednesday.

| More on:
Two female friends laugh while drinking beer at a pub

Image source: Getty Images

Lark Distilling Co Ltd (ASX: LRK) shares have started this morning’s session with a bang after the company released its investor presentation to the market late yesterday. At the time of writing, the Lark share price is soaring 21.91% higher to $3.95.

At one point during early morning trade, Lark shares had jumped by almost 26% to a new all-time high of $4.08 before partially retreating.

Let’s take a closer look at what’s behind the company’s share price movement today.

Investor presentation shows fuel in the growth engine

Investors are driving up the Lark share price this morning after the company released its 10-page investor summary. The update briefly outlined sales performance for the quarter, but also provided guidance on the value of Lark Distilling’s whisky which is still maturing.

Quoting from the numbers, Lark had a total of 1,093,073 litres of whisky “under maturation”, which constitutes a 54% growth year on year.

Further, the company also achieved an average net sales value of $216/litre, 55% more than the $139/litre earned at the same time last year.

Consequently, the company stated the value of its whisky under maturation for the end of FY21 was over $236 million, up 139% from the year previous.

Lark provided FY22 guidance that called for a 55% year-on-year growth schedule, assuming a value of whisky under maturation of $388.8 million at the end of FY22.

The market seems to have welcomed these results from the company, with the Lark share price shooting to new all-time highs.

Lark shares have jumped on positive financial reports in the past, with the share price hitting a 52-week high back in March following the release of the company’s half-year accounts.

Lark share price snapshot

Today’s gains extend an impressive run for Lark shares this year to date. Since 1 January, the Lark share price has returned more than 160%, outpacing the almost 11% returns of the S&P/ASX 200 Index (ASX: XJO) over this time.

Lark shares have a 12-month return of almost 300%, again outpacing the broad index’s return of ~21% for this time period.

Over the previous 1 month, the Lark share price has remained in the green by ~33%, and has climbed by around 22% in the previous 5 trading sessions.

At the current market price, Lark Distilling has a market capitalisation of around $245 million. Its shares have a 52-week range of 96.5 cents to $4.08, hitting their 52-week high this morning.

Should you invest $1,000 in Lark Distilling right now?

Before you consider Lark Distilling, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Lark Distilling wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

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

Two workers on site discuss the next stage of this civil engineering job, one points his hands upwards.
Share Gainers

Why did this ASX nickel share surge 23% today?

Investors keep rewarding ASX listed metals and mining companies in 2022.

Read more »

Share Gainers

Why BlueScope, Firefinch, Monash IVF, and South32 shares are pushing higher

These ASX shares are on form on Wednesday...

Read more »

Five happy miners standing next to each other.
Share Gainers

3 ASX mining shares surging more than 10% today

Metals and mining stocks continue to be rewarded in 2022

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop regarding the NRW share price
Share Gainers

Why these 2 ASX All Ordinaries shares are surging more than 20% today

Two ASX technology shares are leading the charge higher today.

Read more »

Rocket powering up and symbolising a rising share price.
Share Gainers

The Galileo Mining share price has rocketed 380% in a week. But this billionaire is still buying up big

The upside continues for the Galileo today.

Read more »

A laughing woman wearing a bright yellow suit, black glasses and a black hat spins dollar bills out of her hands signifying the big dividends paid by BHP
Share Gainers

Who wants to be a millionaire? If only you’d invested $10,000 in these ASX shares 10 years ago

You won’t believe how much you would have pocketed if you had bought these shares a decade ago.

Read more »

Rising share price chart.
Share Gainers

Why BlueScope, OFX, Pilbara Minerals, and Step One shares are pushing higher

These ASX shares are pushing higher...

Read more »

Man pointing an upward line on a bar graph symbolising a rising share price.
Share Gainers

The Step One share price rocketed 35% today! Here’s why

Step One Clothing shares are on fire today. But is this move as good as it seems?

Read more »