Inchcape (LON:INCH) Stock Rating Reaffirmed as Buy by Jefferies Financial Group

Key Points

• Jefferies reaffirmed its “buy” rating on Inchcape and set a GBX 1,050 price target, implying 71.43% upside from the prior close. Analysts overall rate the stock “Moderate Buy,” with an average target of GBX 1,041.75.
• Inchcape shares fell 11.2% to GBX 612.50, near the company’s one-year low of GBX 604.50 and well below its 50-day and 200-day moving averages.
• Insider Tracy Clarke purchased 3,029 shares at GBX 819 each, while the company reported quarterly EPS of GBX 35.50 and a 19.59% return on equity.

Inchcape (LON:INCH - Get Free Report)'s stock had its "buy" rating reissued by analysts at Jefferies Financial Group in a research note issued on Thursday, London Stock Exchange reports. They presently have a GBX 1,050 target price on the stock. Jefferies Financial Group's price objective suggests a potential upside of 71.43% from the company's previous close.

Several other research firms have also weighed in on INCH. Citigroup lifted their price objective on Inchcape from GBX 1,274 to GBX 1,277 and gave the company a "buy" rating in a research note on Wednesday, July 29th. Berenberg Bank cut their price target on shares of Inchcape from GBX 1,170 to GBX 970 and set a "buy" rating on the stock in a report on Thursday. Finally, Deutsche Bank Aktiengesellschaft lifted their price target on shares of Inchcape from GBX 830 to GBX 870 and gave the company a "hold" rating in a research report on Wednesday, July 29th. Three research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of GBX 1,041.75.

Inchcape Trading Down 11.2%

Shares of INCH stock traded down GBX 77.50 on Thursday, reaching GBX 612.50. 13,833,904 shares of the stock were exchanged, compared to its average volume of 5,283,104. The company has a quick ratio of 0.51, a current ratio of 1.03 and a debt-to-equity ratio of 125.11. The stock has a market cap of £2.08 billion, a P/E ratio of 9.66, a price-to-earnings-growth ratio of 2.06 and a beta of 0.97. The firm has a 50 day moving average of GBX 778.15 and a two-hundred day moving average of GBX 799.71. Inchcape has a 1-year low of GBX 604.50 and a 1-year high of GBX 895.

Inchcape (LON:INCH - Get Free Report) last issued its earnings results on Tuesday, July 28th. The company reported GBX 35.50 earnings per share for the quarter. Inchcape had a return on equity of 19.59% and a net margin of 2.44%. On average, research analysts anticipate that Inchcape will post 85.96 EPS for the current year.

Inchcape announced that its board has initiated a stock buyback program on Tuesday, July 28th that permits the company to buy back 0 outstanding shares. This buyback authorization permits the company to repurchase shares of its stock through open market purchases. Share buyback programs are usually an indication that the company's leadership believes its stock is undervalued.

Insider Buying and Selling

In other news, insider Tracy Clarke acquired 3,029 shares of the business's stock in a transaction on Tuesday, July 28th. The shares were purchased at an average price of GBX 819 per share, for a total transaction of £24,807.51. 13.75% of the stock is owned by corporate insiders.

Inchcape Company Profile

Inchcape is the leading global automotive distributor, with operations across six continents. By combining our in-market expertise with our unique technology and advanced data analytics, we create innovative customer experiences that deliver outstanding performance for our partners – building stronger automotive brands and creating sustainable growth. Our distribution platform connects the products of mobility company partners with customers, and our responsibilities span product planning and pricing, import and logistics, brand and marketing to operating digital sales, managing physical sales and aftermarket service channels.