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

Key Points

• Inchcape's share price fell by 11.7% after Citigroup downgraded its price target from GBX 1,161 to GBX 1,101, despite maintaining a buy rating on the stock.
• Berenberg Bank reaffirmed a buy rating for Inchcape with a target price of GBX 1,120, indicating some analyst confidence despite the recent drop.
• Insider Adrian Lewis purchased 150 shares at GBX 684 ($9.13) recently, reflecting a modest insider confidence in the company's current valuation.

Shares of Inchcape plc (LON:INCH - Get Free Report) traded down 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 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).

Separately, Berenberg Bank restated a "buy" rating and issued a GBX 1,120 ($14.87) target price on shares of Inchcape in a report on Tuesday.

Insider Transactions at Inchcape

In other Inchcape news, insider Byron Elmer Grote purchased 5,000 shares of the firm's 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, for a total transaction of £36,250 ($48,115.21). Also, insider Adrian Lewis purchased 150 shares of the business's stock in a transaction dated 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). Insiders own 14.84% of the company's stock.

Inchcape Price Performance

The company has a market cap of £2.70 billion, a P/E ratio of 10.96, a PEG ratio of 2.06 and a beta of 1.19. The company has a fifty day moving average price of GBX 725.29 and a two-hundred day moving average price of GBX 698.92. The company has a debt-to-equity ratio of 206.10, a quick ratio of 0.51 and a current ratio of 1.10.

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

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.