Capita's (CPI) Buy Rating Reiterated at Shore Capital Group

Key Points

• Shore Capital reiterated a "Buy" rating on Capita and the stock has a consensus "Moderate Buy" from analysts with an average target price of GBX 489, versus the recent price around GBX 274.60.
• Key financial risks include an extremely high debt-to-equity ratio of 964.14, a negative return on equity of -142.88% and a negative net margin of -7.45%, signalling material profitability and leverage concerns.
• Company insiders have been buying shares recently (total 58,718 shares in the last 90 days, including purchases by Adolfo Hernandez and Pablo Andres), and insiders now own 13.40% of the company.

Capita (LON:CPI - Get Free Report)'s stock had its "buy" rating reissued by equities research analysts at Shore Capital Group in a report released on Thursday, Marketbeat reports.

Other research analysts have also issued research reports about the company. Canaccord Genuity Group reiterated a "buy" rating and set a GBX 900 target price on shares of Capita in a research report on Wednesday, March 11th. Berenberg Bank cut their price target on shares of Capita to GBX 330 and set a "hold" rating for the company in a report on Wednesday, March 11th. Four investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of GBX 489.

Capita Price Performance

LON:CPI opened at GBX 274.60 on Thursday. Capita has a 52 week low of GBX 168 and a 52 week high of GBX 415.50. The company has a quick ratio of 0.53, a current ratio of 0.54 and a debt-to-equity ratio of 964.14. The stock has a market capitalization of £312.35 million, a PE ratio of 20.25, a price-to-earnings-growth ratio of 0.18 and a beta of 0.66. The stock's 50-day moving average price is GBX 343.09 and its 200-day moving average price is GBX 337.58.

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

Insider Buying and Selling

In related news, insider Adolfo Hernandez acquired 34,540 shares of Capita stock in a transaction that occurred on Friday, March 13th. The shares were purchased at an average price of GBX 279 per share, for a total transaction of £96,366.60. Also, insider Pablo Andres acquired 12,178 shares of the stock in a transaction on Wednesday, March 11th. The shares were bought at an average cost of GBX 280 per share, for a total transaction of £34,098.40. Insiders bought 58,718 shares of company stock valued at $16,346,500 over the last 90 days. Company insiders own 13.40% of the company's stock.

Capita Company Profile

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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