Mears Group (LON:MER) Shares Pass Above 200 Day Moving Average - Here's Why

Key Points

• Mears Group shares rose above their 200-day moving average, trading as high as GBX 438.50 and last changing hands at GBX 434.50, a technical signal often seen as bullish.
• Analysts remain positive on the stock, with Deutsche Bank reiterating a “buy” rating and a GBX 520 price target. MarketBeat notes a consensus “Buy” rating and an average target of GBX 506.
• The company also has a share repurchase program in place, which can signal management believes the stock is undervalued; however, recent insider sales by two executives are worth noting.

Mears Group plc (LON:MER - Get Free Report) shares passed above its two hundred day moving average during trading on Friday . The stock has a two hundred day moving average of GBX 379.08 and traded as high as GBX 438.50. Mears Group shares last traded at GBX 434.50, with a volume of 81,642 shares traded.

Wall Street Analyst Weigh In

Separately, Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and set a GBX 520 price target on shares of Mears Group in a report on Wednesday, July 1st. Four analysts have rated the stock with a Buy rating, According to MarketBeat.com, the company currently has a consensus rating of "Buy" and an average price target of GBX 506.

Mears Group Stock Performance

The firm's fifty day moving average price is GBX 414.72 and its 200-day moving average price is GBX 379.08. The company has a market cap of £345.81 million, a P/E ratio of 8.07, a P/E/G ratio of 0.68 and a beta of 0.48. The company has a current ratio of 0.79, a quick ratio of 0.92 and a debt-to-equity ratio of 157.98.

Mears Group announced that its board has authorized a share repurchase program on Wednesday, April 1st 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. Shares buyback programs are typically an indication that the company's leadership believes its shares are undervalued.

Insider Activity

In other Mears Group news, insider Andrew C. M. Smith sold 108,303 shares of the company's stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of GBX 401, for a total value of £434,295.03. Also, insider Lucas Critchley sold 60,984 shares of Mears Group stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of GBX 401, for a total value of £244,545.84. Insiders own 1.79% of the company's stock.

About Mears Group

Mears Group plc, together with its subsidiaries, provides various outsourced services to the public and private sectors in the United Kingdom. The company offers rapid-response and planned maintenance services to local authorities; gas and repair services; and maintenance and repairs, capital works, energy investment, and regeneration solutions for public buildings, as well as grounds maintenance services. It provides housing management services, which include supply of affordable homes to public and private sectors; emergency and temporary accommodation services; affordable housing/social housing management; housing with care services; private rented sector; stock acquisition; mears housing solutions; and housing services to central government departments.

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