Mitie Group (LON:MTO) Trading Up 12.9% - Here's Why

Key Points

• Shares of Mitie Group plc surged 12.9% during trading, reaching a last price of GBX 156.95 ($2.09), significantly up from GBX 139 ($1.85).
• Analysts have set a consensus rating of "Moderate Buy" for Mitie Group, with an average price target of GBX 163.33.
• The company has initiated a stock repurchase plan, indicating that management believes its stock is undervalued.

Shares of Mitie Group plc (LON:MTO - Get Free Report) were up 12.9% during trading on Tuesday . The company traded as high as GBX 158.60 ($2.11) and last traded at GBX 156.95 ($2.09). Approximately 20,864,773 shares traded hands during 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).

Analysts Set New Price Targets

A number of equities analysts have commented on MTO shares. Berenberg Bank reaffirmed a "buy" rating and set a GBX 175 target price 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 target price on shares of Mitie Group in a research note on Thursday, September 11th. Finally, Deutsche Bank Aktiengesellschaft lifted their target price on shares of Mitie Group from GBX 165 to GBX 170 and gave the stock a "buy" rating in a research note on Monday, August 11th. Two equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat.com, Mitie Group presently has a consensus rating of "Moderate Buy" and an average price target of GBX 163.33.

Mitie Group Stock 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 company has a current ratio of 0.90, a quick ratio of 0.83 and a debt-to-equity ratio of 85.41. The firm has a market cap of £2.02 billion, a price-to-earnings ratio of 2,052.63, a PEG ratio of 10.10 and a beta of 1.41.

Mitie Group declared that its Board of Directors has initiated a stock repurchase plan on Tuesday, October 14th that authorizes the company to repurchase 0 shares. This repurchase authorization authorizes the company to buy shares of its stock through open market purchases. Stock repurchase plans are often an indication that the company's management believes its stock is undervalued.

Insider Activity at Mitie Group

In other Mitie Group news, insider Mary Reilly purchased 1,844 shares of the firm's stock in a transaction that occurred on Wednesday, October 1st. The stock was purchased at an average price of GBX 138 per share, for a total transaction of £2,544.72. Also, insider Phillip Bentley sold 2,000,032 shares of the stock in a transaction on Monday, September 22nd. The stock was sold at an average price of GBX 138, for a total transaction of £2,760,044.16. Insiders acquired a total of 4,472 shares of company stock worth $618,980 in the last 90 days. 1.77% of the stock is owned by insiders.

Mitie Group Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.