Grafton Group (LON:GFTU) Sets New 1-Year High - Still a Buy?

Key Points

• Grafton Group shares reached a new 52-week high, trading as high as GBX 1,019 and last changing hands at approximately GBX 1,011, up from the previous close of GBX 992.10.
• Analyst sentiment remains positive: six analysts rate the stock a Buy, with recent price targets ranging from GBX 1,100 to GBX 1,275, although Citigroup lowered its target from £115 to £110.
• Grafton has a £2.34 billion market capitalization, an 11.05 price-to-earnings ratio, and trades above both its 50-day and 200-day moving averages, indicating strong recent momentum.

Grafton Group plc (LON:GFTU - Get Free Report) shares hit a new 52-week high on Tuesday . The stock traded as high as GBX 1,019 and last traded at GBX 1,011.27, with a volume of 696961 shares. The stock had previously closed at GBX 992.10.

Analyst Upgrades and Downgrades

Several analysts have recently issued reports on the company. Citigroup reduced their price objective on Grafton Group from £115 to £110 and set a "buy" rating on the stock in a research note on Friday, June 19th. Berenberg Bank increased their price target on Grafton Group from GBX 1,000 to GBX 1,150 and gave the company a "buy" rating in a research report on Wednesday, July 8th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and issued a GBX 1,275 price objective on shares of Grafton Group in a research note on Monday, May 18th. Finally, Peel Hunt reissued a "buy" rating and set a GBX 1,160 price objective on shares of Grafton Group in a research report on Monday, July 13th. Six investment analysts have rated the stock with a Buy rating, According to MarketBeat.com, the company currently has an average rating of "Buy" and a consensus target price of GBX 2,825.

Grafton Group Price Performance

The firm has a market capitalization of £2.34 billion, a price-to-earnings ratio of 11.05, a price-to-earnings-growth ratio of 1.58 and a beta of 1.07. The stock's fifty day moving average price is GBX 892.30 and its two-hundred day moving average price is GBX 908.04. The company has a current ratio of 2.11, a quick ratio of 1.56 and a debt-to-equity ratio of 37.55.

Grafton Group declared that its board has approved a stock repurchase plan on Tuesday, June 30th that allows the company to repurchase 0 outstanding shares. This repurchase authorization allows the company to buy shares of its stock through open market purchases. Shares repurchase plans are typically a sign that the company's board of directors believes its stock is undervalued.

About Grafton Group

Grafton Group plc engages in the distribution, retailing, and manufacturing businesses in Ireland, the Netherlands, Finland, and the United Kingdom. Its Distribution segment distributes building materials, paint, tools, ironmongery, fixings, and accessories, workwear and PPE, and spare parts; materials and plant for mechanical services, heating, plumbing, and air movement; and trade, DIY, and self-build markets with building materials, timber, doors and floors, plumbing and heating, bathrooms, and landscaping products under the Selco, Leyland SDM, Chadwicks, MacBlair, Isero, Polvo, Gunters en Meuser, TG Lynes, and IKH brands.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.