Diploma (LON:DPLM) Reaches New 52-Week High - Should You Buy?

Key Points

• Diploma PLC reached a new 52-week high of GBX 6,965 (last traded GBX 6,960) on Wednesday, with about 578,314 shares changing hands.
• Analysts have been raising targets—Berenberg to GBX 7,500—with five Buy and three Hold ratings, leaving a consensus rating of Moderate Buy and a consensus target of GBX 6,251.25.
• The stock trades at a premium (market cap £9.29 billion; PE 50.47) and an insider, Ian El-Mokadem, bought 500 shares at GBX 5,820, with insiders owning 1.14% of the company.

Shares of Diploma PLC (LON:DPLM - Get Free Report) reached a new 52-week high during mid-day trading on Wednesday . The company traded as high as GBX 6,965 and last traded at GBX 6,960, with a volume of 578314 shares. The stock had previously closed at GBX 6,917.29.

Analysts Set New Price Targets

Several equities analysts recently weighed in on the company. Berenberg Bank lifted their target price on Diploma from GBX 6,600 to GBX 7,500 and gave the company a "buy" rating in a research report on Thursday, March 19th. Stifel Nicolaus lifted their target price on Diploma from GBX 6,200 to GBX 6,800 and gave the stock a "buy" rating in a report on Thursday, March 19th. JPMorgan Chase & Co. boosted their price objective on Diploma from GBX 5,120 to GBX 5,760 and gave the stock a "neutral" rating in a research note on Friday, March 27th. Jefferies Financial Group boosted their price objective on Diploma from GBX 5,200 to GBX 5,700 and gave the stock a "hold" rating in a research note on Monday, March 23rd. Finally, Royal Bank Of Canada upped their target price on Diploma from GBX 6,200 to GBX 6,600 and gave the company an "outperform" rating in a research note on Thursday, March 19th. Five equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of GBX 6,251.25.

Diploma Stock Performance

The business has a fifty day simple moving average of GBX 5,836.31 and a two-hundred day simple moving average of GBX 5,572.35. The company has a debt-to-equity ratio of 46.97, a current ratio of 2.04 and a quick ratio of 0.80. The company has a market cap of £9.29 billion, a PE ratio of 50.47, a price-to-earnings-growth ratio of 2.82 and a beta of 0.89.

Insiders Place Their Bets

In related news, insider Ian El-Mokadem bought 500 shares of the stock in a transaction on Friday, March 20th. The stock was bought at an average price of GBX 5,820 per share, for a total transaction of £29,100. 1.14% of the stock is currently owned by corporate insiders.

About Diploma

Diploma PLC, together with its subsidiaries, supplies specialized technical products and services in the United Kingdom, Continental Europe, North America, and internationally. It operates through three business sectors: Life Sciences, Seals, and Controls. The Life Sciences sector supplies technology-enabled products used in surgical procedures in operating theatres and endoscopy; testing equipment and services for clinical laboratories; and bio-pharma, food safety and testing, and other research-oriented products.

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