Capita (LON:CPI) Share Price Crosses Above 200 Day Moving Average - Time to Sell?

Key Points

• Capita plc (LON:CPI) shares have recently crossed above their 200-day moving average of GBX 175.27, reaching a trading high of GBX 247.
• Analysts have set a new average price target of GBX 405 for the stock, with one analyst rating it a Buy and another a Hold.
• Capita has reported a negative net margin of 1.64% and a significant debt-to-equity ratio of 291.56, indicating potential financial challenges.

Capita plc (LON:CPI - Get Free Report) shares passed above its 200-day moving average during trading on Friday . The stock has a 200-day moving average of GBX 175.27 ($2.38) and traded as high as GBX 247 ($3.35). Capita shares last traded at GBX 243 ($3.30), with a volume of 5,899,965 shares trading hands.

Analyst Upgrades and Downgrades

CPI has been the topic of a number of research analyst reports. Shore Capital reissued a "hold" rating on shares of Capita in a research note on Tuesday, August 5th. Deutsche Bank Aktiengesellschaft increased their target price on shares of Capita from GBX 375 to GBX 405 and gave the company a "buy" rating in a report on Friday, July 4th. One equities research analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of GBX 405.

Capita Stock Performance

The firm has a market cap of £287.22 million, a P/E ratio of 1,862.09, a price-to-earnings-growth ratio of 0.18 and a beta of 1.95. The company has a current ratio of 0.53, a quick ratio of 0.53 and a debt-to-equity ratio of 291.56. The business's fifty day simple moving average is GBX 279.58 and its 200-day simple moving average is GBX 181.70.

Capita (LON:CPI - Get Free Report) last announced its quarterly earnings results on Tuesday, August 5th. The company reported GBX 21.63 earnings per share (EPS) for the quarter. Capita had a negative net margin of 1.64% and a negative return on equity of 28.00%.

Capita Company Profile

Capita plc provides consulting, digital, and software products and services to clients in the private and public sectors in the United Kingdom and internationally. It operates in two divisions: Public Service and Capita Experience divisions. The company offers solutions for finance and accounting, procurement, property and infrastructure, travel and event, and workplace administration.