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Picture this: it’s the early quarter of 2025, and you’re glancing at your Australian stock portfolio.
You’ve seen a couple of steady risers in your diversified portfolio, and investors who’ve allocated a portion of their capital to an Australian Stock Exchange (ASX 200) equity fund will be happy to know that their investment’s value is steadily rising as a whole.
However, one supposedly blue chip stock is facing a grim decline from its all-time high: Woolworth’s.
Woolworth’s share price plummeted in November 2024, and it hasn’t so much as reestablished its footing three months later. This constant decline can be attributed to multiple reasons—from inflationary pressures to unmet worker demands to raise wages.
This reality begs the question: is there still hope for Woolworth stockholders to increase its share value in the future? Or is Woolworths’ stock price a lost cause and needs to be sold immediately?
Let’s investigate if selling your Woolworths shares is the right move and, if so, determine the ideal timing to maximise your investment return.
Let’s jump right in.
A Look Back on Woolworths Share History
Woolworths has played an integral role in providing Australians all around the country supermarket items such as food and other everyday products since its inception. It’s a company that’s well-known in its sector and similar in status to Cole’s and Aldi.
It has established itself as a mainstay in the retail sector for decades, with its first appearance in the publicly listed market being on July 12, 1993. Its price per share has increased exponentially since it became publicly listed, now sitting at shy of $30 AUD per share in early 2025.
Over the long term, the price per share of Woolworths is a net positive. Early investors (in the late 90s to early 2000s) can sell now and reap a sizeable financial cushion. However, later investors may not be in such a positive situation, as share prices have essentially remained the same or even decreased in the past 5 years.
Given that, Woolworths is not a sinking company. It has, on paper, reported a $67.9 billion revenue and a $1.7 billion profit margin. It also continues to innovate and show a commitment to sustainability practices, which can be enticing to investors.
But despite its strong financial performance, there are many economic factors at play that continue to chip away at Woolworth’s once-domineering presence. What does this all mean to current investors of the company?
When is the Best Time to Sell Woolworths Shares?
Timing the market, as a general rule, doesn’t always end well. These investors may run the risk of losing out on exponential returns, leading to them spending a longer time in the market to realise market goals.
The best time to sell Woolworth shares is ultimately something that should align with your own financial goals and set of circumstances. Finding out the opportune time will take a thorough deep dive and analysis on your part.
Talking with a financial professional can help you narrow your exit window considerably, but there are also other tells to know when’s the best time to sell these shares. Here are some factors to consider before you sell your Woolworth shares to know the right time.
1) When it Aligns With Your Investment Goals
One deciding factor in selling your Woolworth shares is gauging whether such a move fits into your overall investment plan. Before investing, you should ideally have an investment strategy in mind that fits your overall financial goals.
Do you want to retire with ample financial padding? Are you keen on buying something in the short term, like a house or a car? Get to the bottom of these answers and base your next decisions on them.
A good goal-setting principle you can follow is the SMART goal principle. This acronym stands for specific, measurable, actionable, relevant, and time-bound and it’s a concept that’s fitting to your eventual decision.
You could, for instance, target reaching a 50% stock price increase for your Woolworth share before selling 20% of your stock holdings. This benchmark gives you something to work with and allows you to reach the financial goals you’re after without necessarily disposing of all your gains.
2) When Stock Prices Remain Stagnant
The current outlook of Woolworth share prices may seem poor, and it’s understandable if this slow price movement can turn you away from investing more capital into the company.
Competitive prices and inflationary measures are some reasons why Woolworths stocks are underperforming. In such cases, looking for alternative companies to invest in, such as Coles, can be a good way to put some stake in the Australian retail industry while still riding a short-term uptrend.
That said, since you likely have existing stocks in the company, you can choose to sell it (or a portion of it) for profit. Your financial goals should include stop loss benchmarks—a predefined minimum value you’re willing to accept before deciding to exit a stock position. Look back into your preexisting goals and make an exit decision that aligns with them.
This approach helps safeguard your portfolio against significant losses and ensures that your investment decisions remain aligned with your broader financial plans.
3) When Technical Projection Looks Poor
Another way to gauge the best time to sell Woolworths shares is by looking at it from a technical point of view. This involves reading and analysing chart movements.
There are many ways you can read these technical indicators. Common forms of analyses include moving averages, MACD (Moving Average Convergence Divergence), and RSI (Relative Strength Index).
You can also analyse chart patterns and trends, like head and shoulders, double tops, and descending triangles. These patterns can help you forecast future drops or uptrends. You should also look into the stock’s support and resistance levels to reinforce your decision to sell or hold.
It takes a lot of knowledge and wisdom to accurately predict the best time to sell Woolworth shares. But generally, if the projection outlook is poor and your investment time horizon is almost up, you may consider selling your shares to liquidate your funds into something more tangible.
4) When You’ve Reaped The Yearly Dividends
The yearly dividend payouts of Woolworths are fairly stable, valued at about 2-3% each year. In 2025 and the next couple of years, it’s even expected to rise steadily from the prior years.
These realised gains help combat the decreasing stock value ever so slightly. However, to gauge whether it’s truly valuable in the grand scheme of things, it’s important to calculate your yearly dividends in conjunction with the stock price of your capital to determine its true value.
For investors who are still in the red with their investment, it may be a good idea to exit only once the dividends have rolled out. This way, you can realise a portion of the gains without having to lock yourself into another year of volatility with this company.
Of course, whether you deem Woolworths as profitable or loss-incurring, in the long run, is an analysis ultimately you decide. But if you believe that the stock’s price movements fall short of your expectations, it may be worthwhile to wait until the dividends roll around to get your fair share of the keep.
5) When You’re Changing Your Risk Tolerance
Another prudent way to know when to sell Woolworths shares is by assessing it based on your own shifting life circumstances.
It’s very possible to change your financial risk tolerance based on developments in your life. For instance, you could have scored a job with better compensation, allowing you to take on more risks to boost your financial growth.
In such cases, it may be worthwhile getting out of a disadvantageous position and park your funds into something that best aligns with your goals.
If this case is applicable to you as a past Woolworth employee, you can consider selling your employee Woolworth shares through an online brokerage service like Share Sales Direct. These brokerage services offer a straightforward platform for managing and executing stock sales.
To do so, you must fill out an online application form on their website. Then, submit an ID and your Securityholder Reference Number, or SRN. Once you’re approved and have an account, you can start selling your Woolworths shares. Just be aware that there will be platform fees and tax implications associated with the transaction.
Good luck selling your Woolies stocks!
