Canaccord Genuity Group Has Lowered Expectations for The Sage Group (LON:SGE) Stock Price

Key Points

• Canaccord Genuity Group has reduced its target price for The Sage Group's stock from GBX 1,090 to GBX 1,080, indicating a potential downside of 11.98% from the previous close.
• JPMorgan Chase & Co. maintains an "overweight" rating with a price objective of GBX 1,500, while the average consensus price target for the stock is significantly higher at GBX 3,904.
• Insider Steve Hare bought 3,076 shares at an average price of GBX 1,206, suggesting confidence from company leadership in the stock's potential value.

The Sage Group (LON:SGE - Get Free Report) had its price objective lowered by research analysts at Canaccord Genuity Group from GBX 1,090 ($14.47) to GBX 1,080 ($14.34) in a research note issued to investors on Thursday, Marketbeat.com reports. The firm presently has a "sell" rating on the stock. Canaccord Genuity Group's price target indicates a potential downside of 10.12% from the stock's current price.

Other research analysts have also recently issued reports about the stock. JPMorgan Chase & Co. restated an "overweight" rating and issued a GBX 1,500 ($19.91) price objective on shares of The Sage Group in a research report on Wednesday, July 2nd. Shore Capital restated a "hold" rating on shares of The Sage Group in a research report on Wednesday. Two analysts have rated the stock with a sell rating, two have given a hold rating and three have issued a buy rating to the company's stock. Based on data from MarketBeat.com, The Sage Group currently has an average rating of "Hold" and an average price target of GBX 3,500 ($46.46).

The Sage Group Stock Performance

The Sage Group stock traded down GBX 18.37 ($0.24) during mid-day trading on Thursday, reaching GBX 1,201.63 ($15.95). The company's stock had a trading volume of 1,270,099 shares, compared to its average volume of 8,205,709. The firm's fifty day moving average price is GBX 1,242.57 and its two-hundred day moving average price is GBX 1,243.67. The company has a debt-to-equity ratio of 114.00, a quick ratio of 0.58 and a current ratio of 0.76. The Sage Group has a 12-month low of GBX 960 ($12.74) and a 12-month high of GBX 1,349 ($17.91). The company has a market capitalization of £11.89 billion, a P/E ratio of 46.71, a PEG ratio of 1.22 and a beta of 0.53.

The Sage Group (LON:SGE - Get Free Report) last announced its quarterly earnings results on Thursday, May 15th. The company reported GBX 20.80 ($0.28) earnings per share (EPS) for the quarter. The Sage Group had a net margin of 11.87% and a return on equity of 24.48%. Sell-side analysts predict that The Sage Group will post 42.1496095 EPS for the current fiscal year.

The Sage Group announced that its board has initiated a stock repurchase plan on Thursday, May 15th that allows the company to buyback 0 shares. This buyback authorization allows the company to repurchase shares of its stock through open market purchases. Stock buyback plans are typically an indication that the company's leadership believes its stock is undervalued.

Insider Buying and Selling at The Sage Group

In related news, insider Steve Hare purchased 3,076 shares of the firm's stock in a transaction on Thursday, July 3rd. The shares were acquired at an average cost of GBX 1,206 ($16.01) per share, with a total value of £37,096.56 ($49,238.86). Company insiders own 1.08% of the company's stock.

About The Sage Group

The Sage Group plc, together with its subsidiaries, provides technology solutions and services for small and medium businesses in the United States, the United Kingdom, France, and internationally. It offers cloud native solutions, such as Sage Intacct, a cloud accounting software product and financial management software; Sage People, a HR and people management solution; Sage 200, a finance and business management solution; Sage X3, a business management solution; Sage Accounting, a solution for small businesses, accountants, and bookkeepers to manage customer data, accounts, and people; Sage Payroll for small businesses manage their payroll; and Sage HR for small and mid-sized businesses for record management, leave management, staff scheduling, and expenses services.