Grainger (LON:GRI) Stock Price Passes Above 200 Day Moving Average - Should You Sell?

Key Points

• Grainger shares rose above their 200-day moving average in Friday trading, briefly reaching GBX 177.60 before last trading at GBX 175.70. The move came on volume of about 1.18 million shares.
• Analysts remain mostly positive, but targets have been cut across several firms, including Jefferies, Deutsche Bank, Berenberg, and Citi. The stock has a consensus rating of Moderate Buy with an average price target of GBX 225.60.
• The company reported solid recent results, including GBX 4.20 EPS and £113.7 million in quarterly revenue. Grainger also posted a 54.91% net margin and 6.53% return on equity, while analysts expect full-year EPS of about 10.46.

Grainger plc (LON:GRI - Get Free Report) crossed above its two hundred day moving average during trading on Friday . The stock has a two hundred day moving average of GBX 174.15 and traded as high as GBX 177.60. Grainger shares last traded at GBX 175.70, with a volume of 1,180,589 shares changing hands.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on the company. Jefferies Financial Group lowered their target price on Grainger from GBX 232 to GBX 210 and set a "buy" rating on the stock in a research note on Friday, May 15th. Deutsche Bank Aktiengesellschaft cut their price target on Grainger from GBX 336 to GBX 238 and set a "buy" rating for the company in a research note on Friday, May 15th. Berenberg Bank decreased their price objective on Grainger from GBX 285 to GBX 227 and set a "buy" rating for the company in a report on Wednesday, May 27th. Finally, Citigroup lowered their price objective on Grainger from GBX 298 to GBX 253 and set a "buy" rating on the stock in a research note on Thursday, April 2nd. Four equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of GBX 225.60.

Grainger Stock Performance

The business has a 50 day moving average of GBX 163.36 and a 200-day moving average of GBX 174.15. The company has a market capitalization of £1.30 billion, a P/E ratio of 6.44, a price-to-earnings-growth ratio of 1.51 and a beta of 0.78. The company has a debt-to-equity ratio of 83.71, a quick ratio of 0.87 and a current ratio of 2.04.

Grainger (LON:GRI - Get Free Report) last issued its earnings results on Thursday, May 14th. The company reported GBX 4.20 EPS for the quarter. The business had revenue of £113.70 million during the quarter. Grainger had a return on equity of 6.53% and a net margin of 54.91%. On average, sell-side analysts predict that Grainger plc will post 10.4590732 EPS for the current fiscal year.

Grainger Company Profile

Founded in Newcastle upon Tyne in 1912, Grainger plc, a FTSE 250 business, is the UK's largest listed residential landlord, a Real Estate Investment Trust (REIT) and a leader in the fast-growing build-to-rent sector, providing c.11,000 rental homes to over 25,000 customers. With a pipeline of secured build-to-rent development projects totalling c.4,300 homes and £1.3bn, Grainger is creating thousands more rental homes by investing in cities across the UK. Grainger works in partnership with a large number of public sector organisations to deliver new homes to local communities, including Transport for London, Network Rail, the Ministry of Defence, Lewisham Borough Council and the Local Pensions Partnership. The Grainger team is dedicated to the common purpose of Renting Homes, Enriching Lives, backed by a set of core values.

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