Mears Group (LON:MER) Stock Price Crosses Above Two Hundred Day Moving Average - Here's What Happened

Key Points

• Mears Group’s share price crossed above its 200-day moving average on Thursday, trading as high as GBX 446.13 and last changing hands at GBX 443.
• Analysts remain bullish on the stock: Berenberg and Deutsche Bank both reiterated buy ratings, and MarketBeat shows a consensus Buy with a GBX 506 price target.
• The company also has a share buyback plan in place, which can signal management believes the stock is undervalued, while recent insider trading was mixed with one buy and one larger sale.

Mears Group plc (LON:MER - Get Free Report)'s share price crossed above its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of GBX 375.94 and traded as high as GBX 446.13. Mears Group shares last traded at GBX 443, with a volume of 304,041 shares traded.

Analyst Upgrades and Downgrades

MER has been the topic of several analyst reports. Berenberg Bank reaffirmed a "buy" rating and issued a GBX 565 target price on shares of Mears Group in a report on Thursday, March 26th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and set a GBX 520 price target on shares of Mears Group in a research note on Wednesday, July 1st. Four investment analysts have rated the stock with a Buy rating, According to MarketBeat, the stock has a consensus rating of "Buy" and a consensus price target of GBX 506.

Mears Group Stock Up 2.4%

The company has a market capitalization of £352.58 million, a PE ratio of 8.23, a price-to-earnings-growth ratio of 0.68 and a beta of 0.48. The firm's 50-day simple moving average is GBX 410.55 and its 200 day simple moving average is GBX 375.94. The company has a debt-to-equity ratio of 157.98, a quick ratio of 0.92 and a current ratio of 0.79.

Mears Group declared that its Board of Directors has initiated a share buyback plan on Wednesday, April 1st that authorizes the company to repurchase 0 shares. This repurchase authorization authorizes the company to reacquire shares of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's leadership believes its stock is undervalued.

Insider Activity

In related news, insider Lucas Critchley bought 9,217 shares of the stock in a transaction on Friday, May 22nd. The shares were bought at an average cost of GBX 416 per share, for a total transaction of £38,342.72. Also, insider Andrew C. M. Smith sold 108,303 shares of the stock in a transaction dated Friday, May 8th. The shares were sold at an average price of GBX 401, for a total transaction of £434,295.03. 1.79% of the stock is owned by company insiders.

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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