Derwent London (LON:DLN) Shares Pass Above 200 Day Moving Average - Here's Why

Key Points

• Derwent London shares moved above their 200-day moving average on Friday, trading as high as GBX 2,070 and last changing hands at GBX 2,046.
• Analysts are mixed on the stock, with an average Hold rating and a consensus target price of GBX 1,956.50, though some firms still see upside while others recommend selling.
• The company recently announced a share repurchase plan, which often signals management believes the stock may be undervalued.

Derwent London Plc (LON:DLN - Get Free Report) shares passed above its two hundred day moving average during trading on Friday . The stock has a two hundred day moving average of GBX 1,790.32 and traded as high as GBX 2,070. Derwent London shares last traded at GBX 2,046, with a volume of 231,681 shares traded.

Wall Street Analyst Weigh In

Several equities analysts have commented on the company. Jefferies Financial Group reiterated an "underperform" rating and set a GBX 1,492 price target on shares of Derwent London in a report on Wednesday, July 1st. Berenberg Bank reduced their price objective on shares of Derwent London from GBX 2,296 to GBX 2,210 and set a "buy" rating for the company in a research note on Wednesday, April 1st. UBS Group reaffirmed a "sell" rating and set a GBX 1,650 price objective on shares of Derwent London in a report on Monday, May 11th. Stifel Nicolaus decreased their price objective on shares of Derwent London from GBX 1,925 to GBX 1,650 and set a "hold" rating for the company in a report on Tuesday, March 31st. Finally, Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and issued a GBX 1,850 target price on shares of Derwent London in a research note on Wednesday, May 13th. Four research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, Derwent London has an average rating of "Hold" and a consensus target price of GBX 1,956.50.

Derwent London Stock Performance

The firm has a fifty day simple moving average of GBX 1,855.67 and a 200 day simple moving average of GBX 1,790.32. The company has a current ratio of 0.59, a quick ratio of 0.38 and a debt-to-equity ratio of 43.37. The stock has a market cap of £2.28 billion, a price-to-earnings ratio of 14.26, a PEG ratio of 23.10 and a beta of 1.19.

Derwent London announced that its board has initiated a share repurchase plan on Tuesday, May 12th that permits the company to buyback 0 outstanding shares. This buyback authorization permits the real estate investment trust to purchase shares of its stock through open market purchases. Stock buyback plans are typically an indication that the company's management believes its stock is undervalued.

Derwent London Company Profile

Derwent London plc owns 66 buildings in a commercial real estate portfolio predominantly in central London valued at £4.9 billion as at 31 December 2023, making it the largest London office-focused real estate investment trust (REIT). Our experienced team has a long track record of creating value throughout the property cycle by regenerating our buildings via development or refurbishment, effective asset management and capital recycling. We typically acquire central London properties off-market with low capital values and modest rents in improving locations, most of which are either in the West End or the Tech Belt.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.