Capita (LON:CPI) Shares Cross Below Two Hundred Day Moving Average - Time to Sell?

Key Points

• Capita's shares crossed below its 200-day moving average, trading as low as GBX 259 and last at GBX 262.81 on volume of 311,910 shares, below the 200-day MA of GBX 339.52.
• Analyst sentiment is mixed but tilted positive: four Buy and two Hold ratings give a consensus target price of GBX 464.20, with individual targets ranging from GBX 320 to GBX 900.
• The company shows weak fundamentals (current ratio 0.54, debt-to-equity 964.14, negative ROE and net margin), yet insiders have been buying—58,718 shares acquired in the last three months and insiders own 13.40% of the stock.

Capita plc (LON:CPI - Get Free Report)'s share price crossed below its 200-day moving average during trading on Monday . The stock has a 200-day moving average of GBX 339.52 and traded as low as GBX 259. Capita shares last traded at GBX 262.81, with a volume of 311,910 shares changing hands.

Analyst Ratings Changes

CPI has been the subject of a number of recent analyst reports. Shore Capital Group reissued a "buy" rating on shares of Capita in a research report on Thursday, March 26th. Deutsche Bank Aktiengesellschaft increased their price objective on shares of Capita from GBX 300 to GBX 320 and gave the company a "hold" rating in a research note on Friday, March 27th. Royal Bank Of Canada reissued an "outperform" rating and set a GBX 450 price objective on shares of Capita in a report on Friday, March 27th. Canaccord Genuity Group reissued a "buy" rating and issued a GBX 900 target price on shares of Capita in a research report on Friday, March 27th. Finally, Berenberg Bank cut their target price on shares of Capita to GBX 330 and set a "hold" rating on the stock in a research note on Wednesday, March 11th. Four analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of GBX 464.20.

Capita Trading Up 1.3%

The company has a current ratio of 0.54, a quick ratio of 0.53 and a debt-to-equity ratio of 964.14. The company has a market cap of £304.67 million, a price-to-earnings ratio of -1.86, a price-to-earnings-growth ratio of 0.18 and a beta of 0.80. The firm has a 50-day moving average price of GBX 312 and a 200 day moving average price of GBX 339.52.

Capita (LON:CPI - Get Free Report) last posted its quarterly earnings results on Tuesday, March 10th. The company reported GBX 49.71 earnings per share (EPS) for the quarter. Capita had a negative return on equity of 142.88% and a negative net margin of 7.45%.

Insiders Place Their Bets

In other Capita news, insider Adolfo Hernandez bought 34,540 shares of the company's stock in a transaction on Friday, March 13th. The shares were bought at an average cost of GBX 279 per share, with a total value of £96,366.60. Also, insider Pablo Andres purchased 12,178 shares of Capita stock in a transaction dated Wednesday, March 11th. The stock was acquired at an average price of GBX 280 per share, for a total transaction of £34,098.40. Insiders have acquired 58,718 shares of company stock worth $16,346,500 over the last three months. 13.40% of the stock is owned by corporate insiders.

About Capita

Capita is a modern outsourcer, helping clients across the public and private sectors run complex business processes more efficiently, creating better consumer experiences. Operating across 8 countries, Capita's colleagues support primarily UK and European clients with people-based services underpinned by market-leading technology. We play an integral role in society - our work matters to the lives of the millions of people who rely on us every day.

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