ASOS (LON:ASC) Shares Up 15.9% - Here's Why

Key Points

• Shares jumped 15.9% to GBX 245.66 on Wednesday, but trading was very thin at ~327,141 shares—about a 97% drop from the average daily volume (~12.94 million).
• Analysts remain constructive: Shore Capital reiterated a Buy with a GBX 400 target, and the consensus rating is a Moderate Buy with an average target of GBX 383.33.
• The company has a small market cap (£289.6m), a negative PE and a very high debt-to-equity ratio (342.8), yet insiders have been buying stock—William Barker purchased 132,455 shares at GBX 381 and insiders now own 18.4%.

Shares of ASOS Plc (LON:ASC - Get Free Report) were up 15.9% on Wednesday . The company traded as high as GBX 248.50 and last traded at GBX 245.66. Approximately 327,141 shares changed hands during trading, a decline of 97% from the average daily volume of 12,943,890 shares. The stock had previously closed at GBX 212.

Wall Street Analyst Weigh In

Separately, Shore Capital Group reiterated a "buy" rating and issued a GBX 400 target price on shares of ASOS in a research note on Thursday, December 4th. Four analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, ASOS has a consensus rating of "Moderate Buy" and an average target price of GBX 383.33.

ASOS Price Performance

The company has a market cap of £289.64 million, a PE ratio of -0.97, a PEG ratio of -1.26 and a beta of 2.30. The company has a debt-to-equity ratio of 342.80, a current ratio of 1.02 and a quick ratio of 0.39. The stock's 50-day moving average is GBX 279.94 and its 200 day moving average is GBX 268.44.

Insider Activity

In other ASOS news, insider William Barker acquired 132,455 shares of the firm's stock in a transaction dated Tuesday, January 20th. The stock was purchased at an average price of GBX 381 per share, for a total transaction of £504,653.55. Insiders acquired 223,531 shares of company stock worth $76,003,437 over the last 90 days. Corporate insiders own 18.40% of the company's stock.

ASOS Company Profile

ASOS Plc operates as an online fashion retailer in the United Kingdom, the United States, Australia, France, Germany, Spain, Italy, Sweden, the Netherlands, Denmark, Poland, and internationally. It offers womenswear and menswear products. The company sells its products under the ASOS Design, ASOS Edition, ASOS Luxe, ASOS 4505, Collusion, Reclaimed Vintage, Topshop, Topman, Miss Selfridge, HIIT, AsYou, Dark Future, UNRVLLD/SPPLY, Crooked Tongues, Daysocial, Actual, and Weekend Collective brands, as well as through third-party brands.

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