FDM Group (LON:FDM) Shares Down 36.3% - What's Next?

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) was down 36.3% during trading on Wednesday . The stock traded as low as GBX 124.20 ($1.65) and last traded at GBX 124.20 ($1.65). Approximately 7,403,986 shares changed hands during mid-day trading, an increase of 1,429% from the average daily volume of 484,315 shares. The stock had previously closed at GBX 195 ($2.59).

Wall Street Analysts Forecast Growth

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

FDM Group Trading Down 2.0%

The company has a market capitalization of £129.91 million, a PE ratio of 4.27 and a beta of 0.97. The company has a current ratio of 2.31, a quick ratio of 2.24 and a debt-to-equity ratio of 28.75. The company has a fifty day simple moving average of GBX 207.75 and a 200-day simple moving average of GBX 226.61.

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

Insider Buying and Selling

In other news, insider Roderick (Rod) Flavell bought 453 shares of the firm's stock in a transaction on Friday, July 4th. The shares were bought at an average cost of GBX 220 ($2.92) per share, for a total transaction of £996.60 ($1,322.80). Also, insider Michael (Mike) McLaren sold 13,699 shares of the business'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). In the last ninety days, insiders acquired 1,769 shares of company stock worth $399,136 and sold 40,514 shares worth $9,156,164. Company 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.