FDM Group (LON:FDM) Trading Down 36.3% - Here's What Happened

Key Points

• FDM Group's stock plummeted 36.3% to GBX 124.20 ($1.66) on Wednesday, with trading volume increasing significantly to over 7.4 million shares.
• Despite the downturn, Shore Capital maintains a "house stock" rating for FDM Group, indicating some analyst confidence in the company's prospects.
• FDM Group reported a return on equity of 42.26% and a net margin of 10.34% in its latest quarterly earnings, hinting at underlying profitability even amid stock performance issues.

FDM Group (Holdings) plc (LON:FDM - Get Free Report)'s share price dropped 36.3% during mid-day trading on Wednesday . The stock traded as low as GBX 124.20 ($1.64) and last traded at GBX 124.20 ($1.64). Approximately 7,403,986 shares traded hands during trading, an increase of 1,429% from the average daily volume of 484,315 shares. The stock had previously closed at GBX 195 ($2.58).

Analyst Ratings Changes

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

FDM Group Price Performance

The company has a debt-to-equity ratio of 28.75, a quick ratio of 2.24 and a current ratio of 2.31. The company has a market capitalization of £129.91 million, a PE ratio of 4.27 and a beta of 0.97. The company's 50-day simple moving average is GBX 212.26 and its 200-day simple moving average is GBX 228.92.

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) EPS for the quarter. FDM Group had a net margin of 10.34% and a return on equity of 42.26%. As a group, sell-side analysts anticipate that FDM Group will post 3132.5302111 earnings per share for the current year.

Insider Activity

In other news, insider Michael (Mike) McLaren sold 13,699 shares of the business's stock in a transaction that occurred on Tuesday, June 3rd. The shares were sold at an average price of GBX 226 ($2.99), for a total value of £30,959.74 ($40,897.94). Also, insider Sheila Flavell sold 13,116 shares of the company's stock in a transaction that occurred on Tuesday, June 3rd. The stock was sold at an average price of GBX 226 ($2.99), for a total transaction of £29,642.16 ($39,157.41). In the last three months, insiders acquired 1,769 shares of company stock worth $399,136 and sold 40,514 shares worth $9,156,164. Insiders own 17.79% of the company's stock.

About FDM Group

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.