Grafton Group (LON:GFTU) Stock Price Crosses Above 200-Day Moving Average - Time to Sell?

Key Points

• Grafton Group shares moved above their 200-day moving average, reaching GBX 981.80 before closing at GBX 966.75, compared with the 200-day average of GBX 906.97.
• Analysts remain broadly positive: six firms rate the stock a Buy, with recent price targets ranging from GBX 1,100 to GBX 1,275, although the article reports an inconsistent average target figure of GBX 2,825.
• Grafton Group has a £2.24 billion market capitalization and a 10.56 price-to-earnings ratio; its announced buyback authorization permits repurchases of zero shares, meaning it provides no meaningful buyback support.

Shares of Grafton Group plc (LON:GFTU - Get Free Report) passed above its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of GBX 906.97 and traded as high as GBX 981.80. Grafton Group shares last traded at GBX 966.75, with a volume of 529,489 shares.

Analyst Ratings Changes

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

Grafton Group Stock Performance

The company has a market capitalization of £2.24 billion, a PE ratio of 10.56, a PEG ratio of 1.58 and a beta of 1.07. The business's 50-day moving average is GBX 879.39 and its 200-day moving average is GBX 906.97. The company has a debt-to-equity ratio of 37.55, a quick ratio of 1.56 and a current ratio of 2.11.

Grafton Group declared that its board has initiated a stock buyback plan on Tuesday, June 30th that allows the company to buyback 0 shares. This buyback authorization allows the company to purchase shares of its stock through open market purchases. Stock buyback plans are typically a sign that the company's board believes its shares are undervalued.

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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