Centrica (LON:CNA) Shares Down 10% - Should You Sell?

Key Points

• Centrica shares fell 10% on Thursday, trading as low as GBX 160.95 after closing at GBX 179.80, with volume running well above average.
• Despite the drop, analysts remain broadly positive: Centrica has a “Moderate Buy” consensus, with five Buy ratings and one Hold, and an average target price of GBX 221.33.
• The company reported quarterly earnings of GBX 6.80 per share, while insiders recently bought shares; however, Centrica still shows a very high debt-to-equity ratio of 92.58 and weak liquidity metrics.

Centrica plc (LON:CNA - Get Free Report)'s stock price traded down 10% during trading on Thursday . The company traded as low as GBX 160.95 and last traded at GBX 161.75. Approximately 54,590,605 shares traded hands during trading, an increase of 52% from the average session volume of 35,814,695 shares. The stock had previously closed at GBX 179.80.

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on CNA shares. JPMorgan Chase & Co. cut their price target on Centrica from GBX 245 to GBX 235 and set an "overweight" rating for the company in a research note on Friday, May 15th. Royal Bank Of Canada reissued an "outperform" rating and issued a GBX 225 price objective on shares of Centrica in a report on Monday, May 11th. Berenberg Bank boosted their price objective on Centrica from GBX 190 to GBX 230 and gave the company a "buy" rating in a research report on Monday, May 18th. Finally, Jefferies Financial Group reaffirmed a "hold" rating and set a GBX 210 target price on shares of Centrica in a research note on Friday, May 8th. Five investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat, Centrica presently has an average rating of "Moderate Buy" and a consensus target price of GBX 221.33.

Centrica Stock Down 10.0%

The company has a debt-to-equity ratio of 92.58, a current ratio of 1.45 and a quick ratio of 0.40. The business's 50 day moving average price is GBX 181.94 and its 200 day moving average price is GBX 192.11. The firm has a market cap of £7.33 billion, a PE ratio of -107.83, a PEG ratio of 0.45 and a beta of 0.34.

Centrica (LON:CNA - Get Free Report) last issued its quarterly earnings results on Thursday, July 23rd. The integrated energy company reported GBX 6.80 earnings per share for the quarter. Centrica had a net margin of 0.37% and a return on equity of 1.68%.

Insider Transactions at Centrica

In other news, insider Sue Whalley purchased 490 shares of the company's stock in a transaction that occurred on Tuesday, May 26th. The stock was purchased at an average cost of GBX 199 per share, for a total transaction of £975.10. Also, insider Chris O’Shea acquired 456 shares of Centrica stock in a transaction that occurred on Thursday, May 14th. The stock was purchased at an average cost of GBX 202 per share, with a total value of £921.12. Over the last three months, insiders acquired 81,703 shares of company stock valued at $16,192,642. Insiders own 0.39% of the company's stock.

About Centrica

Centrica is energising a greener, fairer future for our colleagues, customers and communities. Our integrated business operates across the energy value chain, with over ten million Retail customers, leading brands such as British Gas and Bord Gáis Energy, and the UK's largest energy services workforce. Our Infrastructure businesses bring gas and electricity to the market every day and provide more than half of the UK's gas storage capacity, while our Optimisation business delivers world-class procurement and route-to-market capabilities to the Group and third parties, supporting energy security and our customers' decarbonisation journeys.

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