Diploma (LON:DPLM) Sets New 1-Year High - Should You Buy?

Key Points

• 52-week high: Diploma traded as high as GBX 7,070 and last at GBX 7,065 on volume of 2,234,421 shares, rising about 3.4%.
• Analysts have lifted price targets (notably Berenberg to GBX 7,500) and the stock holds a consensus Moderate Buy, although the average target (GBX 6,251.25) is well below the current price.
• The shares carry a premium valuation (P/E ~52.6) with a market cap of £9.67bn, and an insider purchased 500 shares at GBX 5,820 while insiders own 1.14%.

Diploma PLC (LON:DPLM - Get Free Report)'s stock price reached a new 52-week high on Wednesday . The stock traded as high as GBX 7,070 and last traded at GBX 7,065, with a volume of 2234421 shares changing hands. The stock had previously closed at GBX 6,980.

Analysts Set New Price Targets

DPLM has been the topic of several recent research reports. Royal Bank Of Canada increased their price target on Diploma from GBX 6,200 to GBX 6,600 and gave the company an "outperform" rating in a report on Thursday, March 19th. JPMorgan Chase & Co. increased their price target on Diploma from GBX 5,120 to GBX 5,760 and gave the company a "neutral" rating in a report on Friday, March 27th. Berenberg Bank increased their price target on Diploma from GBX 6,600 to GBX 7,500 and gave the company a "buy" rating in a report on Thursday, March 19th. Deutsche Bank Aktiengesellschaft increased their price target on Diploma from GBX 6,200 to GBX 6,400 and gave the company a "buy" rating in a report on Thursday, March 19th. Finally, Jefferies Financial Group increased their price target on Diploma from GBX 5,200 to GBX 5,700 and gave the company a "hold" rating in a report on Monday, March 23rd. Five equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, Diploma presently has a consensus rating of "Moderate Buy" and an average target price of GBX 6,251.25.

Diploma Stock Up 3.4%

The company has a current ratio of 2.04, a quick ratio of 0.80 and a debt-to-equity ratio of 46.97. The business has a 50-day moving average price of GBX 6,067.63 and a 200-day moving average price of GBX 5,662.52. The firm has a market cap of £9.67 billion, a P/E ratio of 52.55, a P/E/G ratio of 2.82 and a beta of 0.89.

Insider Activity

In other news, insider Ian El-Mokadem purchased 500 shares of the company's stock in a transaction dated Friday, March 20th. The shares were acquired at an average price of GBX 5,820 per share, with a total value of £29,100. Insiders own 1.14% of the company's stock.

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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