Grafton Group (LON:GFTU) Share Price Passes Below Two Hundred Day Moving Average - Here's Why

Key Points

• Grafton shares slipped below their 200-day moving average (200‑day MA GBX 933), trading as low as GBX 865.40 and last at GBX 867.73 on heavy volume (~295,438 shares), a technically bearish signal.
• Analysts remain broadly positive with an average “Buy” rating and price target of GBX 1,149 (Citigroup trimmed its target to GBX 1,150 and Stifel sits at GBX 1,175), while the stock trades on a P/E of ~9.6 and market cap of ~£2.04bn.
• Board-approved share buyback and recent insider buying (Eric Born purchased 1,182 shares at GBX 915) support management confidence, with insiders owning about 9.33% of the stock.

Grafton Group plc (LON:GFTU - Get Free Report) shares passed below its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of GBX 933 and traded as low as GBX 865.40. Grafton Group shares last traded at GBX 867.73, with a volume of 295,438 shares traded.

Wall Street Analyst Weigh In

A number of equities analysts recently weighed in on GFTU shares. Citigroup lowered their price target on shares of Grafton Group from GBX 1,170 to GBX 1,150 and set a "buy" rating on the stock in a research report on Wednesday, January 14th. Stifel Nicolaus restated a "buy" rating and set a GBX 1,175 price target on shares of Grafton Group in a research report on Thursday, March 19th. Five equities research analysts have rated the stock with a Buy rating, According to MarketBeat, the stock currently has an average rating of "Buy" and an average price target of GBX 1,149.

Grafton Group Stock Up 1.2%

The company has a debt-to-equity ratio of 37.55, a current ratio of 2.11 and a quick ratio of 1.56. The business's 50 day simple moving average is GBX 918.54 and its 200 day simple moving average is GBX 933. The company has a market capitalization of £2.04 billion, a PE ratio of 9.60, a P/E/G ratio of 1.58 and a beta of 1.16.

Grafton Group declared that its Board of Directors has approved a share repurchase program on Thursday, March 5th that permits the company to buyback 0 outstanding shares. This buyback authorization permits the company to purchase shares of its stock through open market purchases. Shares buyback programs are usually a sign that the company's board of directors believes its shares are undervalued.

Insider Buying and Selling

In other news, insider Eric Born bought 1,182 shares of Grafton Group stock in a transaction on Wednesday, April 8th. The shares were bought at an average cost of GBX 915 per share, with a total value of £10,815.30. 9.33% of the stock is owned by company insiders.

Grafton Group Company Profile

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.

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