Ocado Group (LON:OCDO) Trading Down 9.8% - Here's Why

Key Points

• Ocado Group's stock price experienced a significant drop of 9.8%, closing at GBX 270.71 ($3.68) after trading as low as GBX 240.30 ($3.26) during the day.
• JPMorgan Chase & Co. raised their price target for Ocado Group from GBX 400 to GBX 437, while the stock maintains a consensus rating of "Buy" among analysts.
• The company has a high debt-to-equity ratio of 144.16, indicating potential financial risks, despite having strong liquidity ratios with a quick ratio of 2.82.

Shares of Ocado Group plc (LON:OCDO - Get Free Report) fell 9.8% during mid-day trading on Friday . The company traded as low as GBX 240.30 ($3.28) and last traded at GBX 270.71 ($3.69). 15,986,102 shares changed hands during mid-day trading, an increase of 99% from the average session volume of 8,031,512 shares. The stock had previously closed at GBX 300 ($4.09).

Wall Street Analysts Forecast Growth

Separately, JPMorgan Chase & Co. increased their price objective on shares of Ocado Group from GBX 400 to GBX 437 and gave the company an "overweight" rating in a research note on Friday, August 1st. One analyst has rated the stock with a Buy rating, Based on data from MarketBeat.com, the company presently has a consensus rating of "Buy" and an average price target of GBX 437.

Ocado Group Stock Performance

The company has a market cap of £1.87 billion, a price-to-earnings ratio of 479.79 and a beta of 1.85. The company has a debt-to-equity ratio of 144.16, a quick ratio of 2.82 and a current ratio of 2.35. The business's 50 day moving average price is GBX 318.51 and its 200-day moving average price is GBX 282.18.

Ocado Group Company Profile

Ocado Group is a UK based technology company that provides end-to-end online grocery fulfilment solutions, known as the Ocado Smart Platform, to some of the world's largest grocery retailers and holds a 50% share of Ocado Retail Ltd in the UK in a Joint Venture with Marks & Spencer. OSP comprises access to Ocado's physical infrastructure solutions, running highly efficient warehouse operations for the single pick of products, together with the entire end-to-end proprietary software applications required to operate a world class online grocery business.