Gamma Communications (LON:GAMA) Trading 10.2% Higher - Time to Buy?

Key Points

• Gamma Communications' shares surged 10.2% during mid-day trading, with the stock last trading at GBX 1,172 ($15.88), following a significant increase in trading volume of 341%.
• Analysts have a consensus rating of "Buy" for Gamma Communications, with a revised price target of GBX 1,500 from Shore Capital and an average target of GBX 1,933.33.
• For the latest quarter, Gamma Communications reported earnings per share of GBX 48, with expectations of approximately 89.64 earnings per share for the current fiscal year.

Shares of Gamma Communications plc (LON:GAMA - Get Free Report) traded up 10.2% during mid-day trading on Tuesday . The company traded as high as GBX 1,186 ($16.07) and last traded at GBX 1,172 ($15.88). 2,833,948 shares were traded during trading, an increase of 341% from the average session volume of 641,937 shares. The stock had previously closed at GBX 1,064 ($14.41).

Analyst Ratings Changes

Separately, Shore Capital cut their price target on Gamma Communications from GBX 1,830 to GBX 1,500 and set a "buy" rating for the company in a research note on Monday, September 1st. Three research analysts have rated the stock with a Buy rating, According to MarketBeat, Gamma Communications presently has a consensus rating of "Buy" and an average price target of GBX 1,933.33.

Gamma Communications Price Performance

The business has a 50 day moving average price of GBX 1,087.97 and a two-hundred day moving average price of GBX 1,184.11. The stock has a market cap of £1.03 billion, a PE ratio of 1,550.00, a P/E/G ratio of 2.79 and a beta of 0.82. The company has a debt-to-equity ratio of 2.08, a quick ratio of 2.45 and a current ratio of 2.78.

Gamma Communications (LON:GAMA - Get Free Report) last announced its earnings results on Tuesday, September 9th. The company reported GBX 48 earnings per share for the quarter. Gamma Communications had a return on equity of 16.09% and a net margin of 10.29%. Research analysts expect that Gamma Communications plc will post 89.6398892 earnings per share 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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