Close Brothers Group (LON:CBG) Shares Up 21.3% - What's Next?

Key Points

• Close Brothers Group shares were up 21.3% on Wednesday, trading as high as GBX 479.80 and finishing around GBX 472.48 on volume of 6.01 million shares, about 46% above the average session volume.
• Several brokers (UBS, Shore Capital, Deutsche Bank, RBC) have upgraded the stock, leaving a consensus rating of Moderate Buy and an average price target of GBX 505.
• Despite the upgrades, the company shows weak profitability metrics (PE -12.87, negative ROE and net margin); however insiders bought shares and analysts expect roughly GBX 66 EPS for the current fiscal year.

Close Brothers Group plc (LON:CBG - Get Free Report) shot up 21.3% on Wednesday . The company traded as high as GBX 479.80 and last traded at GBX 472.48. 6,008,954 shares changed hands during trading, an increase of 46% from the average session volume of 4,125,316 shares. The stock had previously closed at GBX 389.60.

Analyst Ratings Changes

A number of research firms have weighed in on CBG. UBS Group raised Close Brothers Group to a "buy" rating and set a GBX 555 price objective on the stock in a research note on Friday, March 27th. Shore Capital Group raised Close Brothers Group to a "buy" rating in a research note on Friday, March 20th. Deutsche Bank Aktiengesellschaft boosted their price objective on Close Brothers Group from GBX 550 to GBX 570 and gave the stock a "buy" rating in a research note on Friday, January 23rd. Finally, Royal Bank Of Canada upgraded Close Brothers Group to an "outperform" rating and increased their price target for the stock from GBX 475 to GBX 625 in a report on Friday, January 16th. Seven analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of GBX 505.

Close Brothers Group Trading Up 16.6%

The firm has a market capitalization of £684.09 million, a PE ratio of -12.87, a PEG ratio of 1.87 and a beta of 1.23. The business has a fifty day moving average price of GBX 446.23 and a two-hundred day moving average price of GBX 461.71.

Close Brothers Group (LON:CBG - Get Free Report) last released its quarterly earnings results on Tuesday, March 17th. The company reported GBX 27.10 earnings per share for the quarter. Close Brothers Group had a negative return on equity of 2.03% and a negative net margin of 4.66%. On average, equities analysts forecast that Close Brothers Group plc will post 66.0070671 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, insider Mike Morgan bought 2,841 shares of the company's stock in a transaction that occurred on Monday, January 12th. The stock was purchased at an average price of GBX 507 per share, for a total transaction of £14,403.87. Company insiders own 2.19% of the company's stock.

Close Brothers Group Company Profile

Close Brothers Group plc, a merchant banking company, engages in the provision of financial services to small businesses and individuals in the United Kingdom. It operates through five segments: Commercial, Retail, Property, Asset Management, and Securities. The company offers banking services comprising of debt factoring, invoice discounting, asset-based lending; financing for SMEs, residential housing, transport, industrial equipment, renewable energy, motorcycle, used car, and commercial vehicle financing; insurance, refurbishment, and bridging financing, savings products for individuals and corporates, hire purchase, lease, and loan related services.

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