Bellway (LON:BWY) Share Price Passes Below 200 Day Moving Average - Should You Sell?

Key Points

• Technical breach: Bellway shares fell below their 200-day moving average (GBX 2,556.42), trading as low as GBX 1,917 and last at GBX 1,959 on a volume of 546,053 shares.
• Mixed analyst picture but moderate buy consensus: Four analysts rate Buy and four rate Hold, with a MarketBeat consensus of "Moderate Buy" and an average target of GBX 2,921.88 amid recent target cuts (e.g., BofA to GBX 2,200 and Stifel to GBX 1,900).
• Fundamentals show modest profitability: Market cap ~£2.27bn, P/E 14.89, debt-to-equity 5.39, recent quarterly EPS GBX 91.20 and net margin 5.46%, indicating limited margins despite a reasonable valuation for some investors.

Shares of Bellway p.l.c. (LON:BWY - Get Free Report) crossed below its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of GBX 2,556.42 and traded as low as GBX 1,917. Bellway shares last traded at GBX 1,959, with a volume of 546,053 shares traded.

Analyst Ratings Changes

A number of brokerages recently commented on BWY. Royal Bank Of Canada reiterated a "sector perform" rating and set a GBX 3,150 target price on shares of Bellway in a research note on Wednesday, March 25th. Bank of America lowered their target price on shares of Bellway from GBX 3,200 to GBX 2,200 and set a "buy" rating for the company in a research note on Friday, March 27th. Jefferies Financial Group lowered their target price on shares of Bellway from GBX 3,476 to GBX 3,461 and set a "buy" rating for the company in a research note on Monday, January 19th. Finally, Stifel Nicolaus lowered their target price on shares of Bellway from GBX 2,280 to GBX 1,900 and set a "hold" rating for the company in a research note on Thursday, March 26th. Four equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of GBX 2,921.88.

Bellway Stock Down 0.2%

The company has a debt-to-equity ratio of 5.39, a current ratio of 5.26 and a quick ratio of 0.50. The company has a market cap of £2.27 billion, a price-to-earnings ratio of 14.89, a P/E/G ratio of 3.40 and a beta of 1.41. The firm's 50 day simple moving average is GBX 2,341.50 and its 200-day simple moving average is GBX 2,556.42.

Bellway (LON:BWY - Get Free Report) last released its quarterly earnings data on Tuesday, March 24th. The company reported GBX 91.20 earnings per share (EPS) for the quarter. Bellway had a net margin of 5.46% and a return on equity of 4.43%. As a group, sell-side analysts anticipate that Bellway p.l.c. will post 159.0741715 earnings per share for the current year.

Bellway Company Profile

Bellway p.l.c., together with its subsidiaries, engages in the home building business in the United Kingdom. The company builds and sells homes ranging from one-bedroom apartments to six-bedroom family homes, as well as provides homes to housing associations for social housing. It offers homes under Bellway, Ashberry, and Bellway London brands. The company was founded in 1946 and is headquartered in Newcastle upon Tyne, the United Kingdom.

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