Diploma (LON:DPLM) Stock Passes Above Two Hundred Day Moving Average - What's Next?

Key Points

• Diploma shares moved above their 200-day moving average, trading as high as GBX 6,835 and last changing hands at GBX 6,805, a technical sign that can suggest improving momentum.
• Analysts remain mostly constructive on the stock, with five Buy ratings and three Hold ratings; the consensus view is Moderate Buy and the average price target is GBX 6,788.75.
• The company recently reported quarterly earnings of GBX 74.70 per share on revenue of £851.1 million, while insider Katie Bickerstaffe also made a small purchase of 177 shares.

Shares of Diploma PLC (LON:DPLM - Get Free Report) crossed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of GBX 6,195.97 and traded as high as GBX 6,835. Diploma shares last traded at GBX 6,805, with a volume of 286,726 shares trading hands.

Analysts Set New Price Targets

Several research firms recently weighed in on DPLM. Deutsche Bank Aktiengesellschaft upped their price target on Diploma from GBX 6,400 to GBX 7,200 and gave the company a "buy" rating in a research report on Wednesday, May 20th. JPMorgan Chase & Co. raised their price objective on Diploma from GBX 5,120 to GBX 5,760 and gave the stock a "neutral" rating in a research report on Friday, March 27th. Berenberg Bank lifted their target price on Diploma from GBX 7,500 to GBX 9,000 and gave the company a "buy" rating in a research note on Tuesday, May 19th. Stifel Nicolaus upped their target price on Diploma from GBX 6,200 to GBX 6,800 and gave the company a "buy" rating in a report on Thursday, March 19th. Finally, Shore Capital Group reissued a "hold" rating on shares of Diploma in a research report on Wednesday, March 18th. Five research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of GBX 6,788.75.

Diploma Stock Up 0.1%

The business's 50 day simple moving average is GBX 6,972.83 and its 200-day simple moving average is GBX 6,195.97. The company has a debt-to-equity ratio of 47.65, a quick ratio of 0.80 and a current ratio of 2.06. The company has a market cap of £9.13 billion, a price-to-earnings ratio of 48.33, a price-to-earnings-growth ratio of 2.82 and a beta of 0.92.

Diploma (LON:DPLM - Get Free Report) last posted its quarterly earnings results on Tuesday, May 19th. The company reported GBX 74.70 earnings per share for the quarter. Diploma had a net margin of 9.42% and a return on equity of 18.55%. The business had revenue of £851.10 million for the quarter. Sell-side analysts expect that Diploma PLC will post 163.7995512 earnings per share for the current year.

Insider Buying and Selling

In other news, insider Katie Bickerstaffe  bought 177 shares of the stock in a transaction on Wednesday, May 20th. The shares were purchased at an average price of GBX 6,730 per share, for a total transaction of £11,912.10. 1.14% of the stock is owned by company insiders.

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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