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

Key Points

• Diploma reached a new 52-week high of GBX 6,700 on Monday, with about 709,790 shares traded.
• Analysts have lifted price targets (five Buys, three Holds), giving a consensus rating of Moderate Buy and a consensus price target of GBX 6,251.25, which is below the current high.
• The stock trades at a relatively rich valuation (market cap £8.98bn; P/E 48.76) and saw modest insider activity this quarter—insiders own 1.14% with a small purchase and a larger sale reported.

Diploma PLC (LON:DPLM - Get Free Report)'s share price reached a new 52-week high during trading on Monday . The company traded as high as GBX 6,700 and last traded at GBX 6,700, with a volume of 709790 shares. The stock had previously closed at GBX 6,676.02.

Analysts Set New Price Targets

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

Diploma Price Performance

The stock's 50-day moving average price is GBX 5,639.96 and its 200 day moving average price is GBX 5,498.12. The firm has a market cap of £8.98 billion, a price-to-earnings ratio of 48.76, a price-to-earnings-growth ratio of 2.82 and a beta of 0.89. The company has a quick ratio of 0.80, a current ratio of 2.04 and a debt-to-equity ratio of 46.97.

Insider Buying and Selling

In other Diploma news, insider Ian El-Mokadem purchased 500 shares of the company's stock in a transaction that occurred on Friday, March 20th. The stock was purchased at an average price of GBX 5,820 per share, with a total value of £29,100. Also, insider Johnny Thomson sold 30,000 shares of the stock in a transaction dated Friday, January 16th. The stock was sold at an average price of GBX 5,668, for a total transaction of £1,700,400. Insiders acquired 1,352 shares of company stock valued at $7,704,540 over the last quarter. Corporate insiders own 1.14% of the company's stock.

Diploma Company Profile

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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