Elementis (LON:ELM) Shares Pass Above 200 Day Moving Average - Time to Sell?

Key Points

• Elementis shares moved above their 200-day moving average, reaching GBX 187.60 before closing at GBX 179.10, compared with the average of GBX 158.90.
• Analysts remain broadly positive: four rate the stock Buy and one Hold, producing a Moderate Buy consensus and an average price target of GBX 205. Recent targets range from GBX 190 to GBX 220.
• The company reported quarterly earnings of GBX 8.60 per share, with a 12.16% net margin and 11.29% return on equity; however, the announced buyback authorization permits repurchases of zero shares.

Elementis plc (LON:ELM - Get Free Report)'s stock price passed above its two hundred day moving average during trading on Wednesday . The stock has a two hundred day moving average of GBX 158.90 and traded as high as GBX 187.60. Elementis shares last traded at GBX 179.10, with a volume of 48,930,566 shares traded.

Analysts Set New Price Targets

Several research firms recently commented on ELM. JPMorgan Chase & Co. increased their target price on shares of Elementis from GBX 186 to GBX 190 and gave the company a "neutral" rating in a report on Wednesday, August 12th. Deutsche Bank Aktiengesellschaft raised their price target on Elementis from GBX 200 to GBX 215 and gave the stock a "buy" rating in a research note on Friday, July 31st. Jefferies Financial Group restated a "buy" rating and issued a GBX 210 price objective on shares of Elementis in a report on Thursday, July 30th. Finally, Berenberg Bank boosted their target price on shares of Elementis from GBX 195 to GBX 220 and gave the company a "buy" rating in a report on Friday, July 31st. Four research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat.com, Elementis presently has a consensus rating of "Moderate Buy" and a consensus price target of GBX 205.

Elementis Price Performance

The firm has a 50-day moving average of GBX 165.77 and a 200 day moving average of GBX 158.90. The company has a market capitalization of £1.02 billion, a PE ratio of 14.21, a PEG ratio of 3.05 and a beta of 0.93. The company has a debt-to-equity ratio of 39.91, a current ratio of 2.27 and a quick ratio of 1.16.

Elementis (LON:ELM - Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The company reported GBX 8.60 earnings per share for the quarter. Elementis had a net margin of 12.16% and a return on equity of 11.29%. As a group, research analysts anticipate that Elementis plc will post 9.4993582 earnings per share for the current fiscal year.

Elementis announced that its board has approved a stock buyback plan on Wednesday, June 3rd that allows the company to buyback 0 shares. This buyback authorization allows the company to buy shares of its stock through open market purchases. Shares buyback plans are generally a sign that the company's leadership believes its shares are undervalued.

About Elementis

Elementis is a global specialty chemicals company listed on the London Stock Exchange. The Group employs c.1,000 across 20 global locations. As recognised innovation leaders with deep expertise in rheology (the science of flow), and formulation solutions, we develop distinctive solutions and products to improve performance, achieve smoother production, and enhance sustainability credentials for customers across a range of industries. The Group also owns and operates the largest high-quality hectorite mine in the world.

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