Mitie Group (LON:MTO) Trading Up 12.9% - What's Next?

Key Points

• Mitie Group plc's stock price surged by 12.9% during mid-day trading, reaching as high as GBX 158.60, with a trading volume significantly above its average.
• Analysts rate Mitie Group with a consensus of "Moderate Buy" and an average target price of GBX 163.33, with significant upgrades from Deutsche Bank and Berenberg Bank.
• The company recently approved a share repurchase program, indicating that the board believes the stock may be undervalued, while insiders have been actively buying shares.

Mitie Group plc (LON:MTO - Get Free Report)'s stock price shot up 12.9% during mid-day trading on Wednesday . 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 mid-day 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).

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on MTO. Jefferies Financial Group restated a "hold" rating and issued a GBX 145 target price on shares of Mitie Group in a research note on Thursday, September 11th. Deutsche Bank Aktiengesellschaft upped 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. Finally, Berenberg Bank restated a "buy" rating and set a GBX 175 target price on shares of Mitie Group in a research note on Tuesday, September 2nd. Two analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of GBX 163.33.

Mitie Group Trading Down 1.5%

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 company has a market cap of £2.02 billion, a price-to-earnings ratio of 2,055.26, a price-to-earnings-growth ratio of 10.10 and a beta of 1.41. The firm has a 50-day moving average price of GBX 141.82 and a 200 day moving average price of GBX 140.58.

Mitie Group declared that its board has approved a share repurchase program on Tuesday, October 14th that allows the company to repurchase 0 shares. This repurchase authorization allows the company to reacquire shares of its stock through open market purchases. Shares repurchase programs are usually an indication that the company's board of directors believes its stock is undervalued.

Insider Buying and Selling at Mitie Group

In other Mitie Group news, insider Salma Shah acquired 2,423 shares of the company's stock in a transaction that occurred on Wednesday, October 1st. The shares were purchased at an average price of GBX 138 per share, for a total transaction of £3,343.74. Also, insider Mary Reilly bought 1,844 shares of the business's stock in a transaction on Wednesday, October 1st. The stock was acquired at an average cost of GBX 138 per share, for a total transaction of £2,544.72. Insiders acquired a total of 4,472 shares of company stock worth $618,980 over the last 90 days. Insiders own 1.77% of the company's stock.

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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