B&M European Value Retail (LON:BME) Stock Price Down 16% - Time to Sell?

Key Points

• B&M European Value Retail S.A. saw its stock price decline by 16%, trading as low as GBX 173.70 ($2.33) during a significant volume surge of 348 million shares, increasing by over 2,200% from the average daily volume.
• Analysts have set varied target prices, with Citigroup lowering theirs to GBX 290 while Deutsche Bank maintains a higher target of GBX 410, reflecting differing views on the stock's potential.
• The company has a high debt-to-equity ratio of 315.77 and a market capitalization of £1.86 billion, which raises concerns about its financial stability amidst the recent stock decline.

B&M European Value Retail S.A. (LON:BME - Get Free Report)'s share price was down 16% during trading on Monday . The stock traded as low as GBX 173.70 ($2.33) and last traded at GBX 182.71 ($2.45). Approximately 348,471,406 shares changed hands during mid-day trading, an increase of 2,265% from the average daily volume of 14,734,898 shares. The stock had previously closed at GBX 217.60 ($2.92).

Analysts Set New Price Targets

Several equities analysts have recently commented on BME shares. Citigroup decreased their target price on B&M European Value Retail from GBX 361 to GBX 290 and set a "buy" rating on the stock in a research report on Wednesday, October 8th. Shore Capital raised B&M European Value Retail to a "buy" rating and upped their target price for the company from GBX 250 to GBX 300 in a research report on Thursday, October 9th. Jefferies Financial Group decreased their target price on B&M European Value Retail from GBX 305 to GBX 265 and set a "hold" rating on the stock in a research report on Monday, October 13th. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and issued a GBX 410 target price on shares of B&M European Value Retail in a research report on Tuesday, July 15th. Finally, JPMorgan Chase & Co. decreased their target price on B&M European Value Retail from GBX 207 to GBX 205 and set an "underweight" rating on the stock in a research report on Wednesday, October 8th. Eleven research analysts have rated the stock with a Buy rating, two have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of GBX 364.44.

B&M European Value Retail Trading Down 15.0%

The company has a quick ratio of 0.38, a current ratio of 1.06 and a debt-to-equity ratio of 315.77. The firm has a market capitalization of £1.86 billion, a P/E ratio of 581.76 and a beta of 1.05. The firm has a 50 day moving average of GBX 240.63 and a 200-day moving average of GBX 271.32.

Insider Activity

In related news, insider Tjeerd Jegen purchased 50,400 shares of the business's stock in a transaction that occurred on Wednesday, September 17th. The stock was acquired at an average cost of GBX 250 per share, for a total transaction of £126,000. Insiders purchased 257,380 shares of company stock valued at $62,468,940 in the last three months. Insiders own 22.78% of the company's stock.

B&M European Value Retail Company Profile

B&M European Value Retail SA operates general merchandise and grocery stores. The company operates a chain of stores under the B&M, Heron Foods, and B&M Express in the United Kingdom; and stores under the B&M brand in France. It also provides property management services. The company was founded in 1978 and is based in Munsbach, Luxembourg.

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