Inchcape (LON:INCH) Stock Price Down 11.7% on 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) shares traded down 11.7% 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 changed hands 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).

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

Insider Buying and Selling

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

Inchcape Trading Down 2.3%

The stock 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 current ratio of 1.10, a quick ratio of 0.51 and a debt-to-equity ratio of 206.10. The stock's fifty 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 (EPS) for the quarter. Inchcape had a return on equity of 17.60% and a net margin of 2.45%. Equities research analysts expect that Inchcape plc will post 85.9639233 earnings per share 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.