Inchcape (LON:INCH) Shares Down 11.7% - Here's Why

Key Points

• Inchcape plc shares experienced a significant decline of 11.7%, closing at GBX 706.50 ($9.44), with trading volumes up 40% from the average.
• Analysts have set new target prices, with Citigroup lowering its target from GBX 1,163 to GBX 1,161, while Berenberg Bank maintained a buy rating and set a target of GBX 1,120.
• Insider Adrian Lewis purchased 150 shares at GBX 684 ($9.13), indicating confidence in the stock, which is currently 14.84% owned by insiders.

Inchcape plc (LON:INCH - Get Free Report) shares traded down 11.7% on Tuesday . The stock traded as low as GBX 706.50 ($9.38) and last traded at GBX 706.50 ($9.38). 1,858,581 shares traded hands during 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).

Analysts Set New Price Targets

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

Inchcape Stock Performance

The company has a debt-to-equity ratio of 206.10, a quick ratio of 0.51 and a current ratio of 1.10. The stock has a market cap of £2.70 billion, a P/E ratio of 10.96, a price-to-earnings-growth ratio of 2.06 and a beta of 1.19. The company's 50 day moving average price is GBX 725.29 and its 200-day moving average price is GBX 698.92.

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

Insider Buying and Selling

In related news, insider Byron Elmer Grote bought 5,000 shares of the stock in a transaction that occurred on Tuesday, July 29th. The shares were acquired at an average cost of GBX 725 ($9.62) per share, with a total value of £36,250 ($48,115.21). Also, insider Adrian Lewis bought 150 shares of the stock in a transaction that occurred on Monday, June 16th. The stock was bought at an average cost of GBX 684 ($9.08) per share, for a total transaction of £1,026 ($1,361.83). Company 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.