Mitie Group (LON:MTO) Stock Price Up 12.9% - Should You Buy?

Key Points

• Mitie Group's stock price surged 12.9% on Tuesday, reaching GBX 158.60 at its highest during trading, driven by significant trading volume that increased by 334% compared to average levels.
• Analysts have issued a consensus rating of "Moderate Buy" for Mitie Group, with price targets varying from GBX 145 to GBX 175 from different investment firms.
• The company's board has approved a share buyback program, signaling confidence in the stock's value, as insiders have also been buying shares recently.

Mitie Group plc (LON:MTO - Get Free Report) shares shot up 12.9% on Tuesday . The stock traded as high as GBX 158.60 ($2.11) and last traded at GBX 156.95 ($2.09). 20,864,773 shares traded hands during trading, an increase of 334% from the average session volume of 4,804,687 shares. The stock had previously closed at GBX 139 ($1.85).

Analysts Set New Price Targets

A number of equities analysts have commented on the stock. Berenberg Bank reaffirmed a "buy" rating and set a GBX 175 price target on shares of Mitie Group in a research note on Tuesday, September 2nd. Jefferies Financial Group reaffirmed a "hold" rating and set a GBX 145 price target on shares of Mitie Group in a research note on Thursday, September 11th. Finally, Deutsche Bank Aktiengesellschaft boosted their price objective on shares of Mitie Group from GBX 165 to GBX 170 and gave the company a "buy" rating in a research report on Monday, August 11th. Two equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of GBX 163.33.

Mitie Group Price Performance

The firm's fifty day moving average price is GBX 141.82 and its 200 day moving average price is GBX 140.58. The firm has a market capitalization of £2.03 billion, a PE ratio of 2,065.13, a P/E/G ratio of 10.10 and a beta of 1.41. The company has a current ratio of 0.90, a quick ratio of 0.83 and a debt-to-equity ratio of 85.41.

Mitie Group declared that its board has authorized a share buyback program on Tuesday, October 14th that authorizes the company to buyback 0 shares. This buyback authorization authorizes the company to purchase shares of its stock through open market purchases. Stock buyback programs are typically a sign that the company's board believes its stock is undervalued.

Insider Activity at Mitie Group

In other news, insider Mary Reilly bought 1,844 shares of the business's stock in a transaction on Wednesday, October 1st. The shares were bought at an average price of GBX 138 per share, with a total value of £2,544.72. Also, insider Salma Shah bought 2,423 shares of the business's stock in a transaction on Wednesday, October 1st. The stock was purchased at an average cost of GBX 138 per share, for a total transaction of £3,343.74. Over the last quarter, insiders bought 4,472 shares of company stock valued at $618,980. 1.77% of the stock is owned by company insiders.

About Mitie Group

Mitie Group plc, together with its subsidiaries, provides facilities management and professional services in the United Kingdom and internationally. The company operates in four segments: Business Services, Technical Services, Central Government & Defense (CG&D), Communities. The company provides decarbonization, electrical grid connections, emission intelligence, energy and carbon, EV fleets, and heat solutions, as well as solar energy; cleaning and hygiene, engineering maintenance, integrated facilities management, landscape, and waste management services; project and workplace services; and Fire & security systems, front of house, intelligence, vetting, and security guarding service.

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