Inchcape (LON:INCH) Shares Down 11.7% - Time to Sell?

Key Points

• Inchcape plc shares fell by 11.7% to GBX 706.50 ($9.44) during mid-day trading, with a significant increase in volume observed.
• Analysts at Berenberg Bank maintained a "buy" rating and a target price of GBX 1,120 ($14.96), while Citigroup revised their target down to GBX 1,101 ($14.70) but also recommended a "buy" rating.
• Inchcape reported quarterly earnings of GBX 35.50 ($0.47) per share, with a net margin of 2.45% and a return on equity of 17.60%.

Inchcape plc (LON:INCH - Get Free Report)'s share price fell 11.7% during mid-day trading on Tuesday . The company traded as low as GBX 706.50 ($9.38) and last traded at GBX 706.50 ($9.38). 1,858,581 shares were traded during mid-day trading, an increase of 40% from the average session volume of 1,330,989 shares. The stock had previously closed at GBX 800 ($10.62).

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on INCH. JPMorgan Chase & Co. reaffirmed a "neutral" rating on shares of Inchcape in a research note on Thursday. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and issued a GBX 800 ($10.62) target price on shares of Inchcape in a report on Wednesday. Citigroup cut their target price on Inchcape from GBX 1,161 ($15.41) to GBX 1,101 ($14.61) and set a "buy" rating on the stock in a research note on Wednesday. Finally, Berenberg Bank reaffirmed a "buy" rating and set a GBX 1,120 ($14.87) price objective on shares of Inchcape in a research report on Tuesday.

Inchcape Trading Down 2.3%

The company has a debt-to-equity ratio of 206.10, a current ratio of 1.10 and a quick ratio of 0.51. The company has a market cap of £2.70 billion, a PE ratio of 10.96, a price-to-earnings-growth ratio of 2.06 and a beta of 1.19. The company's 50 day simple moving average is GBX 725.29 and its two-hundred day simple moving average is GBX 698.92.

Inchcape (LON:INCH - Get Free Report) last released its quarterly earnings results on Tuesday, July 29th. The company reported GBX 35.50 ($0.47) earnings per share (EPS) for the quarter. Inchcape had a return on equity of 17.60% and a net margin of 2.45%. As a group, sell-side analysts anticipate that Inchcape plc will post 85.9639233 EPS for the current fiscal year.

Insider Transactions at Inchcape

In other news, insider Byron Elmer Grote acquired 5,000 shares of the business's stock in a transaction on Tuesday, July 29th. The shares were purchased at an average price of GBX 725 ($9.62) per share, for a total transaction of £36,250 ($48,115.21). Also, insider Adrian Lewis acquired 150 shares of the firm's stock in a transaction on Monday, June 16th. The stock was acquired at an average cost of GBX 684 ($9.08) per share, with a total value of £1,026 ($1,361.83). Insiders own 14.84% of the company's stock.

Inchcape Company Profile

Inchcape is the leading global automotive distributor, with operations across six continents. By combining our in-market expertise with our unique technology and advanced data analytics, we create innovative customer experiences that deliver outstanding performance for our partners – building stronger automotive brands and creating sustainable growth.