Gamma Communications (LON:GAMA) Stock Price Up 13.8% - Here's Why

Key Points

• Shares of Gamma Communications jumped 13.8% intraday, trading as high as GBX 846.60 and last at GBX 833 versus a prior close of GBX 732.20 on roughly 2.7 million shares (about 9% above average volume).
• Analysts maintain a consensus Buy rating with a consensus target of GBX 1,538, although Deutsche Bank and Citigroup trimmed their targets to GBX 1,400 while keeping buy ratings.
• The company has a market cap of £765 million and trades at a P/E of 12.13; it reported quarterly EPS of GBX 69.50 with a net margin of about 10%, metrics that underpin analyst upside estimates.

Gamma Communications plc (LON:GAMA - Get Free Report) shares rose 13.8% during trading on Wednesday . The stock traded as high as GBX 846.60 and last traded at GBX 833. Approximately 2,694,759 shares were traded during mid-day trading, an increase of 9% from the average daily volume of 2,469,263 shares. The stock had previously closed at GBX 732.20.

Analysts Set New Price Targets

GAMA has been the topic of several recent analyst reports. Shore Capital Group reiterated a "buy" rating on shares of Gamma Communications in a report on Wednesday, March 25th. Deutsche Bank Aktiengesellschaft dropped their target price on shares of Gamma Communications from GBX 1,460 to GBX 1,400 and set a "buy" rating on the stock in a report on Friday, March 27th. Berenberg Bank reiterated a "buy" rating and issued a GBX 1,570 target price on shares of Gamma Communications in a report on Tuesday, March 24th. Finally, Citigroup dropped their price objective on shares of Gamma Communications from GBX 1,420 to GBX 1,400 and set a "buy" rating on the stock in a report on Thursday, January 15th. Five research analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, the company has a consensus rating of "Buy" and a consensus target price of GBX 1,538.

Gamma Communications Stock Performance

The firm's fifty day moving average price is GBX 851.15 and its 200-day moving average price is GBX 912.70. 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 cap of £765.00 million, a P/E ratio of 12.13, a P/E/G ratio of 2.79 and a beta of 0.65.

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 net margin of 10.01% and a return on equity of 13.14%. As a group, research analysts forecast that Gamma Communications plc will post 89.6398892 EPS for the current fiscal year.

About Gamma Communications

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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