Ibstock (LON:IBST) Trading Down 7.2% - Should You Sell?

Key Points

• Ibstock plc's stock experienced a significant decline, trading down 7.2% to GBX 124.10 after closing at GBX 133.80, with a trading volume markedly above average.
• Major analysts have lowered their price targets for Ibstock, with Deutsche Bank setting a target of GBX 210 and Berenberg Bank at GBX 170, indicating a cautious outlook despite some maintaining a "buy" rating.
• The company reported earnings of GBX 3 per share for the last quarter, with expectations for a fiscal year EPS of approximately 11.01, revealing a modest return on equity of 1.83% and a net margin of 2.01%.

Ibstock plc (LON:IBST - Get Free Report) traded down 7.2% during mid-day trading on Friday . The stock traded as low as GBX 113.78 ($1.51) and last traded at GBX 124.10 ($1.65). 18,111,258 shares were traded during mid-day trading, an increase of 727% from the average session volume of 2,189,371 shares. The stock had previously closed at GBX 133.80 ($1.78).

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on the company. Deutsche Bank Aktiengesellschaft cut their price target on Ibstock from GBX 220 to GBX 210 and set a "buy" rating on the stock in a report on Thursday, August 7th. Berenberg Bank cut their target price on Ibstock from GBX 200 to GBX 170 and set a "hold" rating on the stock in a research note on Monday, September 8th. Finally, Jefferies Financial Group cut their target price on Ibstock from GBX 190 to GBX 188 and set a "buy" rating on the stock in a research note on Friday, August 8th. Two investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of GBX 189.33.

Ibstock Stock Down 6.6%

The company has a debt-to-equity ratio of 46.91, a quick ratio of 1.19 and a current ratio of 1.37. The company has a market cap of £493.35 million, a P/E ratio of 4,166.67, a P/E/G ratio of 0.47 and a beta of 1.34. The stock has a 50 day moving average price of GBX 139.37 and a 200 day moving average price of GBX 159.01.

Ibstock (LON:IBST - Get Free Report) last issued its earnings results on Wednesday, August 6th. The company reported GBX 3 earnings per share (EPS) for the quarter. Ibstock had a return on equity of 1.83% and a net margin of 2.01%. Research analysts expect that Ibstock plc will post 11.0089552 earnings per share for the current fiscal year.

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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