Gamma Communications (LON:GAMA) Share Price Crosses Below Two Hundred Day Moving Average - Should You Sell?

Key Points

• Gamma Communications crossed below its 200‑day moving average (200‑day MA GBX 907.63) on Friday, dipping to GBX 895.60 and last trading at GBX 913 on a volume of 563,499, a potential technical warning despite a higher 50‑day MA (GBX 843.99).
• Analysts remain broadly bullish — five research houses rate the stock a Buy with a consensus price target of GBX 1,538, although several recently trimmed targets to around GBX 1,400–1,570.
• Fundamentals are mixed but respectable: market cap £831.09m, P/E 13.17, quick ratio 2.45, ROE 13.14% and last quarter EPS GBX 69.50, with analysts forecasting roughly GBX 89.64 EPS for the year, suggesting a moderate valuation versus upside in analyst targets.

Gamma Communications plc (LON:GAMA - Get Free Report) crossed below its two hundred day moving average during trading on Friday . The stock has a two hundred day moving average of GBX 907.63 and traded as low as GBX 895.60. Gamma Communications shares last traded at GBX 913, with a volume of 563,499 shares traded.

Analyst Ratings Changes

A number of equities analysts recently weighed in on the stock. Citigroup dropped their target price on shares of Gamma Communications from GBX 1,420 to GBX 1,400 and set a "buy" rating for the company in a research report on Thursday, January 15th. Deutsche Bank Aktiengesellschaft lowered their price objective on shares of Gamma Communications from GBX 1,460 to GBX 1,400 and set a "buy" rating for the company in a research report on Friday, March 27th. Shore Capital Group restated a "buy" rating on shares of Gamma Communications in a research report on Wednesday, March 25th. Finally, Berenberg Bank restated a "buy" rating and issued a GBX 1,570 price target on shares of Gamma Communications in a research report on Tuesday, March 24th. Five research analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, the stock presently has an average rating of "Buy" and a consensus price target of GBX 1,538.

Gamma Communications Trading Up 2.2%

The company has a current ratio of 1.40, a quick ratio of 2.45 and a debt-to-equity ratio of 13.12. The company has a market capitalization of £831.09 million, a price-to-earnings ratio of 13.17, a PEG ratio of 2.79 and a beta of 0.78. The company has a fifty day moving average of GBX 843.99 and a 200-day moving average of GBX 907.63.

Gamma Communications (LON:GAMA - Get Free Report) last posted 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 13.14% and a net margin of 10.01%. As a group, equities research analysts anticipate that Gamma Communications plc will post 89.6398892 earnings per share 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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