Ibstock (LON:IBST) Shares Pass Below Fifty Day Moving Average - Should You Sell?

Key Points

• Ibstock shares fell below their 50-day moving average (50‑day MA GBX 110.98), trading as low as GBX 103 and last at GBX 104.40 on a volume of 759,876 shares.
• Several brokers trimmed price targets (Jefferies to GBX 127, Berenberg to GBX 135, Deutsche Bank to GBX 110), leaving a consensus rating of Moderate Buy and a consensus price target of GBX 135.50.
• The company has a market cap of £410.69m and a high P/E of 130 with a low net margin (0.83%), and insider activity was mixed—one insider sold 64,484 shares at GBX 103 while another bought 20,000 shares at GBX 108.

Ibstock plc (LON:IBST - Get Free Report) crossed below its 50-day moving average during trading on Tuesday . The stock has a 50-day moving average of GBX 110.98 and traded as low as GBX 103. Ibstock shares last traded at GBX 104.40, with a volume of 759,876 shares changing hands.

Analysts Set New Price Targets

A number of brokerages recently issued reports on IBST. Jefferies Financial Group decreased their price objective on shares of Ibstock from GBX 133 to GBX 127 and set a "buy" rating for the company in a report on Monday, April 20th. Berenberg Bank decreased their price objective on shares of Ibstock from GBX 150 to GBX 135 and set a "hold" rating for the company in a report on Wednesday, January 21st. Finally, Deutsche Bank Aktiengesellschaft decreased their price objective on shares of Ibstock from GBX 144 to GBX 110 and set a "hold" rating for the company in a report on Tuesday, March 24th. Two research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of GBX 135.50.

Ibstock Price Performance

The company has a market cap of £410.69 million, a price-to-earnings ratio of 130.00, a PEG ratio of 0.47 and a beta of 0.88. The company has a quick ratio of 1.19, a current ratio of 1.33 and a debt-to-equity ratio of 44.59. The company's fifty day moving average price is GBX 110.98 and its two-hundred day moving average price is GBX 125.51.

Ibstock (LON:IBST - Get Free Report) last released its quarterly earnings results on Thursday, March 5th. The company reported GBX 5.70 earnings per share for the quarter. Ibstock had a net margin of 0.83% and a return on equity of 0.79%. On average, equities research analysts forecast that Ibstock plc will post 11.0089552 EPS for the current fiscal year.

Insider Activity at Ibstock

In other news, insider Joe Hudson sold 64,484 shares of the company's stock in a transaction that occurred on Monday, March 23rd. The shares were sold at an average price of GBX 103, for a total value of £66,418.52. Also, insider Martin Payne purchased 20,000 shares of Ibstock stock in a transaction dated Friday, April 17th. The stock was bought at an average price of GBX 108 per share, with a total value of £21,600. 2.26% of the stock is owned by corporate insiders.

About Ibstock

Ibstock plc manufactures and sells clay and concrete building products and solutions to customers in the residential construction sector in the United Kingdom. The company offers bricks and masonry, which includes facing and engineering bricks, brick slips, special shaped bricks, walling stone, architectural masonry, prefabricated components, eco-habitats, and padstones and lintels, as well as façade systems; roofing products comprising roof tiles and accessories, and chimneys; and flooring and lintels, such as beam and block flooring, insulated flooring, hollowcore, and screed rails.

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