Gamma Communications (LON:GAMA) Reaches New 1-Year Low - Should You Sell?

Key Points

• 52-week low: Gamma Communications fell to an intra-day low of GBX 743 and last traded at GBX 745.60 (previous close GBX 832) on volume of 1,985,784 shares.
• Analysts remain upbeat with a consensus Buy rating (four Buy ratings) and an average target of GBX 1,572.50; Citigroup trimmed its target to GBX 1,400 while Berenberg reaffirmed GBX 1,570.
• Key fundamentals: market cap £683.05m, P/E 10.74, 50-/200-day SMAs at GBX 887.80/GBX 932.78, and most recent quarterly EPS GBX 69.50 with ROE 13.77% and net margin 11.03%.

Gamma Communications plc (LON:GAMA - Get Free Report)'s stock price reached a new 52-week low during mid-day trading on Wednesday . The company traded as low as GBX 743 and last traded at GBX 745.60, with a volume of 1985784 shares changing hands. The stock had previously closed at GBX 832.

Analysts Set New Price Targets

Several brokerages have weighed in on GAMA. Citigroup dropped their target price on Gamma Communications from GBX 1,420 to GBX 1,400 and set a "buy" rating on the stock in a research report on Thursday, January 15th. Berenberg Bank reissued a "buy" rating and set a GBX 1,570 price target on shares of Gamma Communications in a report on Tuesday. Four investment analysts have rated the stock with a Buy rating, Based on data from MarketBeat, the stock presently has a consensus rating of "Buy" and an average target price of GBX 1,572.50.

Gamma Communications Stock Up 1.7%

The firm's 50 day simple moving average is GBX 887.80 and its 200 day simple moving average is GBX 932.78. The company has a market cap of £683.05 million, a price-to-earnings ratio of 10.74, a price-to-earnings-growth ratio of 2.79 and a beta of 0.65. The company has a quick ratio of 2.45, a current ratio of 1.22 and a debt-to-equity ratio of 17.72.

Gamma Communications (LON:GAMA - Get Free Report) last issued its quarterly earnings data on Tuesday, March 24th. The company reported GBX 69.50 earnings per share (EPS) for the quarter. Gamma Communications had a return on equity of 13.77% and a net margin of 11.03%. Sell-side analysts anticipate that Gamma Communications plc will post 89.6398892 EPS for the current fiscal year.

Gamma Communications Company Profile

Gamma Communications plc, together with its subsidiaries, engages in the provision of technology-based communications and software services for small, medium, and large sized to businesses in Western Europe. The company offers Unified Communications as a Service products for enabling businesses to raise productivity, boost agility, and increase collaboration; Contact Centre as a Service, through a software platform that allows contact centres to operate over the internet for SMEs and Enterprise; and Direct Routing and Operator Connect services, designed to enable seamless and integrated calling between Teams and the local telephony infrastructure.

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