Inchcape (LON:INCH) Shares Down 11.7% After Analyst Downgrade

Key Points

• Inchcape plc shares dropped by 11.7% after Citigroup downgraded its price target from GBX 1,161 to GBX 1,101, although they maintain a buy rating on the stock.
• Insider Adrian Lewis purchased 150 shares at GBX 684 each, indicating confidence in the company's prospects, as insiders hold 14.84% of the company's stock.
• Berenberg Bank has reiterated a "buy" rating on Inchcape, setting a target price of GBX 1,120, which is higher than Citigroup's revised target.

Inchcape plc (LON:INCH - Get Free Report)'s share price fell 11.7% during mid-day trading on Wednesday after Citigroup lowered their price target on the stock from GBX 1,161 to GBX 1,101. Citigroup currently has a buy rating on the stock. Inchcape 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 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).

Separately, Berenberg Bank reaffirmed a "buy" rating and set a GBX 1,120 ($14.87) target price on shares of Inchcape in a research report on Tuesday, July 29th.

Insiders Place Their Bets

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

Inchcape Price Performance

The company has a 50 day moving average of GBX 725.29 and a 200 day moving average of GBX 698.62. The company has a current ratio of 1.10, a quick ratio of 0.51 and a debt-to-equity ratio of 206.10. The firm has a market cap of £2.70 billion, a price-to-earnings ratio of 10.96, a P/E/G ratio of 2.06 and a beta of 1.19.

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

About Inchcape

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.