CVS Group (LON:CVSG) Share Price Crosses Below 200 Day Moving Average - Here's What Happened

Key Points

• CVS Group shares slipped below their 200-day moving average on Wednesday, trading as low as GBX 1,218.83 before last changing hands at GBX 1,236. The stock also saw heavy volume, with more than 20.4 million shares traded.
• Despite the recent weakness, Berenberg Bank reaffirmed a Buy rating and kept a GBX 2,000 price target on the stock. MarketBeat data shows an overall Moderate Buy consensus with an average target of GBX 1,724.
• CVS Group’s board launched a share repurchase plan, a move often seen as a sign management believes the stock may be undervalued. Insider buying also continued, with Scott Morrison purchasing 987 shares at GBX 1,270 each.

CVS Group plc (LON:CVSG - Get Free Report)'s stock price passed below its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of GBX 1,247.82 and traded as low as GBX 1,218.83. CVS Group shares last traded at GBX 1,236, with a volume of 20,419,254 shares traded.

Analyst Upgrades and Downgrades

Separately, Berenberg Bank reaffirmed a "buy" rating and issued a GBX 2,000 price objective on shares of CVS Group in a research note on Tuesday, May 26th. Four research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat.com, CVS Group has an average rating of "Moderate Buy" and an average price target of GBX 1,724.

CVS Group Stock Performance

The company's fifty day moving average price is GBX 1,195.82 and its two-hundred day moving average price is GBX 1,247.82. The company has a debt-to-equity ratio of 92.34, a quick ratio of 0.90 and a current ratio of 1.07. The firm has a market capitalization of £856.00 million, a PE ratio of 17.95, a price-to-earnings-growth ratio of 1.77 and a beta of 1.06.

CVS Group announced that its Board of Directors has initiated a stock repurchase plan on Tuesday, May 26th that authorizes the company to repurchase 0 shares. This repurchase authorization authorizes the company to repurchase shares of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's management believes its shares are undervalued.

Insider Activity at CVS Group

In other CVS Group news, insider Scott Morrison bought 987 shares of the company's stock in a transaction dated Wednesday, May 27th. The shares were acquired at an average cost of GBX 1,270 per share, with a total value of £12,534.90. Insiders own 1.43% of the company's stock.

CVS Group Company Profile

CVS Group is a leading provider of veterinary services, operating in the UK and Australia, listed on the Main Market of the London Stock Exchange. CVS is focused on providing high-quality clinical services to its clients and their animals, with outstanding and dedicated clinical teams and support colleagues at the core of its strategy. The Group operates from over 475 veterinary practices across its two territories, including specialist referral hospitals and dedicated out-of-hours sites. Alongside the core Veterinary Practices division, CVS operates Laboratories (providing diagnostic services to CVS and third-parties) and an online retail business ("Animed Direct"). The Group employs c.8,900 personnel, including c.2,400 veterinary surgeons and c.3,300 nurses.

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