Grafton Group (LON:GFTU) Stock Crosses Below 200 Day Moving Average - Here's Why

Key Points

• Grafton Group shares slipped below their 200‑day moving average, trading at GBX 913.70 versus the 200‑day MA of GBX 931.09, indicating near‑term technical weakness.
• Analysts remain broadly bullish with a consensus Buy from five analysts and an average target of GBX 1,149 (recent notes: Stifel GBX 1,175; Citi trimmed its target to GBX 1,150).
• The board has authorized a share buyback (announced March 5), while the company shows a market cap of £2.12bn, a P/E of 9.98 and a debt‑to‑equity ratio of 37.55, suggesting management sees value amid moderate leverage.

Grafton Group plc (LON:GFTU - Get Free Report) shares passed below its two hundred day moving average during trading on Thursday . The stock has a two hundred day moving average of GBX 931.09 and traded as low as GBX 910.50. Grafton Group shares last traded at GBX 913.70, with a volume of 123,915 shares.

Analyst Ratings Changes

GFTU has been the subject of several analyst reports. Stifel Nicolaus reaffirmed a "buy" rating and issued a GBX 1,175 price objective on shares of Grafton Group in a research note on Thursday, March 19th. Citigroup lowered their target price 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. Five research analysts have rated the stock with a Buy rating, According to MarketBeat.com, the company currently has a consensus rating of "Buy" and an average target price of GBX 1,149.

Grafton Group Trading Up 0.3%

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 company's 50 day moving average is GBX 942.40 and its two-hundred day moving average is GBX 931.09. The firm has a market cap of £2.12 billion, a P/E ratio of 9.98, a PEG ratio of 1.58 and a beta of 1.20.

Grafton Group announced that its board has authorized a share buyback program on Thursday, March 5th that allows the company to buyback 0 outstanding shares. This buyback authorization allows the company to reacquire shares of its stock through open market purchases. Stock buyback programs are usually a sign that the company's board of directors believes its shares are 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.