ME Group International (LON:MEGP) Stock Price Down 7.9% - Here's Why

Key Points

• Shares fell 7.9% on Thursday to GBX 138.03 (intraday low GBX 137.60) on abnormally high volume of about 123.6 million shares—roughly a 3,088% increase versus the average daily turnover.
• Despite the drop, the stock carries a consensus Buy rating from three analysts with an average target of GBX 248.33, and Canaccord Genuity reiterated a GBX 220 price objective.
• ME Group shows solid fundamentals (market cap £519.6M, P/E 9.26, ROE 27.72%, net margin 17.94%) after reporting GBX 15 quarterly EPS, and the board has authorized a share buyback program to repurchase stock via open-market purchases.

Shares of ME Group International plc (LON:MEGP - Get Free Report) dropped 7.9% on Thursday . The company traded as low as GBX 137.60 and last traded at GBX 138.03. Approximately 123,568,336 shares changed hands during mid-day trading, an increase of 3,088% from the average daily volume of 3,875,708 shares. The stock had previously closed at GBX 149.80.

Analyst Ratings Changes

Separately, Canaccord Genuity Group reissued a "buy" rating and set a GBX 220 price objective on shares of ME Group International in a research note on Friday, March 27th. Three investment analysts have rated the stock with a Buy rating, According to MarketBeat.com, ME Group International has a consensus rating of "Buy" and an average target price of GBX 248.33.

ME Group International Stock Performance

The stock has a market cap of £519.55 million, a price-to-earnings ratio of 9.26 and a beta of 0.50. The business has a 50-day simple moving average of GBX 140.77 and a two-hundred day simple moving average of GBX 150.30.

ME Group International (LON:MEGP - Get Free Report) last announced its quarterly earnings data on Monday, March 23rd. The company reported GBX 15 earnings per share for the quarter. ME Group International had a return on equity of 27.72% and a net margin of 17.94%. On average, analysts expect that ME Group International plc will post 15.5344418 earnings per share for the current fiscal year.

ME Group International declared that its Board of Directors has authorized a share buyback program on Monday, March 23rd that permits the company to buyback 0 outstanding shares. This buyback authorization permits the company to repurchase shares of its stock through open market purchases. Stock buyback programs are typically an indication that the company's management believes its shares are undervalued.

About ME Group International

ME Group International plc LSE: MEGP is an international market leader in automated self-service equipment aimed at the consumer market, with over 49,000 vending units currently in operation. The Group operates, sells and services a wide range of instant-service vending equipment across 16 countries in its key regions of Continental Europe, the UK & Republic of Ireland and Asia Pacific. The Group's services include: Core activities: • Photo.ME - Photobooths and integrated biometric identification solutions • Wash.ME - Unattended laundry services and launderettes Ancillary activities: • Print.ME - High-quality digital printing kiosks • Other vending - Primarily foodservice vending equipment (Feed.ME), Children's rides (Amuse.ME), Photocopier services (Copy.ME) The Group has a proven track record of innovation and diversification of its products and services, enabling it to respond to the evolving needs of its customers and consumers. The Group benefits from well-established partnerships and long-term contracts with major site owners in attractive, high-footfall locations, enabling it to offer multiple products and services onsite.

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