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

Key Points

• Inchcape plc shares fell by 11.7% after Citigroup downgraded their price target from GBX 1,161 to GBX 1,101, although the bank still holds a buy rating on the stock.
• Despite the drop, Berenberg Bank reaffirmed a buy rating with a higher price target of GBX 1,120.
• Corporate insider Adrian Lewis purchased 150 shares at GBX 684, showing confidence in the firm as insider ownership stands at 14.84%.

Inchcape plc (LON:INCH - Get Free Report)'s stock price was 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). Approximately 1,858,581 shares changed hands during mid-day trading, an increase of 40% from the average daily volume of 1,330,989 shares. The stock had previously closed at GBX 800 ($10.62).

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

Insider Activity at Inchcape

In other Inchcape news, insider Byron Elmer Grote acquired 5,000 shares of the company's stock in a transaction that occurred on Tuesday, July 29th. The stock was bought 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 that occurred on Monday, June 16th. The stock was purchased at an average price 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 Price Performance

The company has a market capitalization 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. 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 stock has a fifty day simple moving average of GBX 725.29 and a 200-day simple moving average of GBX 698.62.

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