Mears Group (LON:MER) Stock Price Passes Above 200-Day Moving Average - Here's Why

Key Points

• Passed above its 200-day moving average: Mears Group's stock moved above its 200-day MA of GBX 356.30, trading as high as GBX 399 and last at GBX 396.61 on volume of 831,555 shares, indicating a technical breakout.
• Analyst bullishness: The stock has an average Buy rating with a consensus target of GBX 503.50, and Berenberg reaffirmed a Buy with a GBX 565 price objective.
• Mixed fundamentals and buyback: The company has a market cap of £326.04m, a low P/E of 7.34 but a high debt-to-equity ratio of 157.98, and its board approved an open-market share repurchase plan.

Mears Group plc (LON:MER - Get Free Report)'s stock price passed above its two hundred day moving average during trading on Tuesday . The stock has a two hundred day moving average of GBX 356.30 and traded as high as GBX 399. Mears Group shares last traded at GBX 396.61, with a volume of 831,555 shares changing hands.

Analyst Ratings Changes

Separately, Berenberg Bank reissued a "buy" rating and issued a GBX 565 price objective on shares of Mears Group in a research report on Thursday, March 26th. Four research analysts have rated the stock with a Buy rating, According to MarketBeat, Mears Group has an average rating of "Buy" and a consensus target price of GBX 503.50.

Mears Group Price Performance

The firm has a 50-day simple moving average of GBX 355.90 and a 200 day simple moving average of GBX 356.30. The company has a debt-to-equity ratio of 157.98, a current ratio of 0.79 and a quick ratio of 0.92. The company has a market capitalization of £326.04 million, a PE ratio of 7.34, a price-to-earnings-growth ratio of 0.68 and a beta of 0.37.

Mears Group (LON:MER - Get Free Report) last released its quarterly earnings data on Thursday, March 26th. The company reported GBX 55.70 EPS for the quarter. Mears Group had a return on equity of 23.94% and a net margin of 4.07%. On average, research analysts predict that Mears Group plc will post 32.5150732 EPS for the current fiscal year.

Mears Group declared that its board has approved a stock repurchase plan on Wednesday, April 1st that authorizes the company to repurchase 0 outstanding shares. This repurchase authorization authorizes the company to repurchase shares of its stock through open market purchases. Shares repurchase plans are usually a sign that the company's board of directors believes its stock is undervalued.

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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