Mitie Group (LON:MTO) Trading 12.9% Higher - Should You Buy?

Key Points

• Mitie Group plc shares surged by 12.9% during mid-day trading, reaching a high of GBX 158.60 ($2.11), significantly above its previous closing price of GBX 139 ($1.85).
• Analysts remain positive about the stock, with a consensus rating of "Moderate Buy" and a target price set at GBX 163.33, indicating potential for further growth.
• The company has authorized a stock repurchase plan, suggesting that management believes the shares are undervalued.

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

Wall Street Analyst Weigh In

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

Mitie Group Trading Up 12.9%

The company has a current ratio of 0.90, a quick ratio of 0.83 and a debt-to-equity ratio of 85.41. The business's 50-day simple moving average is GBX 141.82 and its two-hundred day simple moving average is GBX 140.58. The company has a market capitalization of £2.03 billion, a PE ratio of 2,065.13, a PEG ratio of 10.10 and a beta of 1.41.

Mitie Group announced that its Board of Directors has approved a stock repurchase plan on Tuesday, October 14th that permits the company to repurchase 0 outstanding shares. This repurchase authorization permits the company to reacquire shares of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's management believes its shares are undervalued.

Insider Activity at Mitie Group

In related news, insider Phillip Bentley sold 2,000,032 shares of the firm's stock in a transaction that occurred on Monday, September 22nd. The shares were sold at an average price of GBX 138, for a total transaction of £2,760,044.16. Also, insider Salma Shah acquired 2,423 shares of the firm's stock in a transaction that occurred on Wednesday, October 1st. The stock was purchased at an average cost of GBX 138 per share, with a total value of £3,343.74. Insiders have purchased 4,472 shares of company stock worth $618,980 over the last quarter. 1.77% of the stock is currently 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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