Gamma Communications (LON:GAMA) Shares Up 10.2% - Here's Why

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.

Gamma Communications plc (LON:GAMA - Get Free Report)'s share price was up 10.2% during mid-day trading on Tuesday . The stock traded as high as GBX 1,186 ($16.08) and last traded at GBX 1,172 ($15.89). Approximately 2,833,948 shares changed hands during trading, an increase of 341% from the average daily volume of 641,937 shares. The stock had previously closed at GBX 1,064 ($14.43).

Wall Street Analyst Weigh In

A number of equities analysts recently commented on GAMA shares. Shore Capital reiterated a "buy" rating and set a GBX 1,500 target price on shares of Gamma Communications in a research note on Tuesday, September 9th. Berenberg Bank reiterated a "buy" rating and issued a GBX 1,570 price objective on shares of Gamma Communications in a report on Tuesday, September 9th. Three investment analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, Gamma Communications has an average rating of "Buy" and an average target price of GBX 1,790.

Gamma Communications Price Performance

The company has a debt-to-equity ratio of 2.08, a quick ratio of 2.45 and a current ratio of 2.78. The stock's 50-day moving average is GBX 1,077.79 and its 200 day moving average is GBX 1,175.17. The stock has a market capitalization of £914.23 million, a PE ratio of 1,377.78, a P/E/G ratio of 2.79 and a beta of 0.82.

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