AO World (LON:AO) Share Price Crosses Below 200 Day Moving Average - Time to Sell?

Key Points

• AO World plc's stock has fallen below its 200-day moving average, with shares trading as low as GBX 85.50 ($1.15) amidst a volume of 353,955 shares.
• Deutsche Bank has downgraded their rating for AO World to a "hold" and decreased the price target from GBX 135 to GBX 105.
• Insider selling has been notable, with a total of 3,147,090 shares sold by company insiders worth approximately £300,620,640 over the past three months.

Shares of AO World plc (LON:AO - Get Free Report) passed below its two hundred day moving average during trading on Friday . The stock has a two hundred day moving average of GBX 95.84 ($1.30) and traded as low as GBX 85 ($1.15). AO World shares last traded at GBX 85.50 ($1.16), with a volume of 353,955 shares.

Analyst Ratings Changes

Separately, Deutsche Bank Aktiengesellschaft cut AO World to a "hold" rating and cut their target price for the stock from GBX 135 to GBX 105 in a research note on Monday, August 4th. One equities research analyst has rated the stock with a Hold rating, Based on data from MarketBeat.com, AO World presently has a consensus rating of "Hold" and an average target price of GBX 105.

AO World Price Performance

The company has a debt-to-equity ratio of 43.05, a current ratio of 0.95 and a quick ratio of 0.48. The company has a market capitalization of £504.19 million, a PE ratio of 19.77, a PEG ratio of -2.13 and a beta of 1.06. The firm has a 50-day moving average of GBX 92.11 and a 200 day moving average of GBX 95.67.

AO World (LON:AO - Get Free Report) last released its quarterly earnings data on Wednesday, June 18th. The company reported GBX 1.70 EPS for the quarter. AO World had a return on equity of 18.96% and a net margin of 2.48%. As a group, research analysts anticipate that AO World plc will post 4.8263419 earnings per share for the current fiscal year.

Insider Activity at AO World

In related news, insider John Roberts sold 500,000 shares of the stock in a transaction on Thursday, July 3rd. The stock was sold at an average price of GBX 97, for a total transaction of £485,000. Also, insider Chris Hopkinson sold 500,000 shares of the stock in a transaction on Wednesday, August 27th. The shares were sold at an average price of GBX 88, for a total value of £440,000. Insiders have sold 3,147,090 shares of company stock valued at $300,620,640 over the last ninety days. Insiders own 47.09% of the company's stock.

About AO World

AO World plc, together with its subsidiaries, engages in the online retailing of domestic appliances the United Kingdom and Germany. It retails fridge and freezers; laundry products; dishwashers; and audiovisual equipment, as well as computing, mobile, gaming, and smart home technology products. The company provides logistics and transport services.