FDM Group (LON:FDM) Shares Down 36.3% - Here's Why

Key Points

• FDM Group shares experienced a significant drop of 36.3%, trading as low as GBX 124.20 ($1.65) after closing previously at GBX 195 ($2.59).
• Despite the drop in stock price, Shore Capital reaffirmed a "house stock" rating for FDM Group, indicating potential for recovery.
• Insiders have been active, with one selling 13,699 shares valued at £30,959.74 and another purchasing 453 shares, highlighting mixed sentiment within the company.

FDM Group (Holdings) plc (LON:FDM - Get Free Report) dropped 36.3% on Wednesday . The stock traded as low as GBX 124.20 ($1.65) and last traded at GBX 124.20 ($1.65). Approximately 8,409,954 shares traded hands during mid-day trading, an increase of 1,612% from the average daily volume of 491,205 shares. The stock had previously closed at GBX 195 ($2.59).

Wall Street Analysts Forecast Growth

Separately, Shore Capital reiterated a "house stock" rating on shares of FDM Group in a research note on Wednesday.

FDM Group Price Performance

The company has a debt-to-equity ratio of 28.75, a current ratio of 2.31 and a quick ratio of 2.24. The stock has a market cap of £129.91 million, a PE ratio of 4.27 and a beta of 0.97. The business has a fifty day moving average of GBX 207.75 and a 200 day moving average of GBX 226.89.

FDM Group (LON:FDM - Get Free Report) last released its quarterly earnings data on Wednesday, July 30th. The company reported GBX 6.30 ($0.08) earnings per share (EPS) for the quarter. FDM Group had a return on equity of 42.26% and a net margin of 10.34%. Sell-side analysts anticipate that FDM Group will post 3132.5302111 earnings per share for the current year.

Insiders Place Their Bets

In other news, insider Andrew (Andy) Brown sold 13,699 shares of the company's stock in a transaction on Tuesday, June 3rd. The stock was sold at an average price of GBX 226 ($3.00), for a total value of £30,959.74 ($41,093.36). Also, insider Sheila Flavell sold 13,116 shares of FDM Group stock in a transaction dated Tuesday, June 3rd. The stock was sold at an average price of GBX 226 ($3.00), for a total value of £29,642.16 ($39,344.52). Over the last 90 days, insiders bought 1,769 shares of company stock worth $399,136 and sold 40,514 shares worth $9,156,164. Corporate insiders own 17.79% of the company's stock.

FDM Group Company Profile

FDM Group (Holdings) plc provides information technology (IT) services in the United Kingdom, North America, Europe, the Middle East, Africa, rest of Europe, and the Asia Pacific. It is involved in recruiting, training, and deploying its IT and business consultants to clients. The company was formerly known as Astra Topco Limited and changed its name to FDM Group (Holdings) plc.