Babcock International Group (LON:BAB) Stock Passes Above 200-Day Moving Average - Should You Sell?

Key Points

• Babcock International shares rose above their 200-day moving average, reaching GBX 1,212.50 before closing at GBX 1,205, compared with a 200-day average of GBX 1,186.42.
• Analysts remain broadly bullish: five firms rated the stock Buy, while recent price targets ranged from GBX 1,390 to GBX 1,500, despite several target-price reductions.
• The company reported quarterly EPS of GBX 42.10, a 31.57% return on equity and a 4.08% net margin. Insider David Mellors sold 24,804 shares for approximately £283,758, while insiders own 1.10% of the company.

Babcock International Group PLC (LON:BAB - Get Free Report) shares crossed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of GBX 1,186.42 and traded as high as GBX 1,212.50. Babcock International Group shares last traded at GBX 1,205, with a volume of 985,719 shares trading hands.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on BAB. Royal Bank Of Canada lowered their target price on Babcock International Group from GBX 1,400 to GBX 1,390 and set an "outperform" rating on the stock in a research note on Monday, July 20th. JPMorgan Chase & Co. cut their price target on Babcock International Group from GBX 1,700 to GBX 1,500 and set an "overweight" rating for the company in a research note on Thursday, May 14th. Berenberg Bank reduced their price target on Babcock International Group from GBX 1,675 to GBX 1,430 and set a "buy" rating for the company in a report on Monday, August 3rd. Citigroup boosted their price target on Babcock International Group from £155.40 to £155.60 and gave the company a "buy" rating in a research note on Wednesday, June 24th. Finally, Jefferies Financial Group restated a "buy" rating and issued a GBX 1,400 price objective on shares of Babcock International Group in a report on Wednesday, July 1st. Five research analysts have rated the stock with a Buy rating, According to MarketBeat, the stock currently has an average rating of "Buy" and an average price target of GBX 4,256.

Babcock International Group Price Performance

The stock has a market capitalization of £5.93 billion, a P/E ratio of 29.18, a PEG ratio of 1.35 and a beta of 0.87. The stock's fifty day moving average is GBX 1,064.76 and its 200-day moving average is GBX 1,186.42. The company has a debt-to-equity ratio of 178.86, a current ratio of 0.80 and a quick ratio of 0.76.

Babcock International Group (LON:BAB - Get Free Report) last released its quarterly earnings results on Monday, June 22nd. The company reported GBX 42.10 earnings per share (EPS) for the quarter. Babcock International Group had a return on equity of 31.57% and a net margin of 4.08%.The company had revenue of GBX 517.77 billion during the quarter. On average, equities analysts anticipate that Babcock International Group PLC will post 41.4298019 earnings per share for the current year.

Insider Buying and Selling

In other Babcock International Group news, insider David Mellors sold 24,804 shares of the business's stock in a transaction on Monday, August 3rd. The shares were sold at an average price of GBX 1,144, for a total transaction of £283,757.76. 1.10% of the stock is owned by company insiders.

Babcock International Group Company Profile

Babcock International Group PLC, together with its subsidiaries, provides value-add services for aerospace, defense, and security in the United Kingdom, rest of Europe, Africa, North America, Australasia, and internationally. The company operates through four segments: Marine, Nuclear, Land, and Aviation. It designs, procures, operates, and manages critical utility and process equipment; offers asset management, defense and maritime training, information and intelligence, equipment and system, and facilities and infrastructure services, as well as naval platforms; and designs, manufactures, and provides through-life support for mechanical and electrical systems and equipment.

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