Persimmon (LON:PSN) Stock Crosses Below 200-Day Moving Average - Here's What Happened

Key Points

• Persimmon shares fell below their 200-day moving average on Wednesday, trading as low as GBX 1,060 before last changing hands at GBX 1,093. The move came with heavy volume of 1,843,459 shares.
• Analysts remain broadly positive on the stock despite recent target cuts. Persimmon still carries a “Moderate Buy” consensus, with eight Buy ratings and two Hold ratings, and a consensus target price of GBX 2,606.
• An insider sale was disclosed in late May, when director Dean K. Finch sold 60,000 shares for about £671,400 at an average price of GBX 1,119. Insiders currently own 2.63% of the company.

Persimmon Plc (LON:PSN - Get Free Report)'s stock price passed below its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of GBX 1,216.67 and traded as low as GBX 1,060. Persimmon shares last traded at GBX 1,093, with a volume of 1,843,459 shares changing hands.

Wall Street Analysts Forecast Growth

PSN has been the topic of a number of analyst reports. Bank of America reduced their price objective on shares of Persimmon from GBX 1,600 to GBX 1,300 and set a "buy" rating on the stock in a report on Monday, March 30th. Citigroup dropped their target price on Persimmon from £161.50 to £128 and set a "buy" rating on the stock in a report on Tuesday, June 23rd. Panmure Gordon restated a "buy" rating and issued a GBX 1,694 price target on shares of Persimmon in a research note on Friday, May 1st. Jefferies Financial Group reaffirmed a "buy" rating and set a GBX 1,591 price target on shares of Persimmon in a report on Thursday, April 30th. Finally, JPMorgan Chase & Co. lowered their price objective on Persimmon from GBX 1,800 to GBX 1,430 and set an "overweight" rating for the company in a research report on Tuesday, June 16th. Eight research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of GBX 2,606.

Persimmon Price Performance

The company's 50 day moving average is GBX 1,066.95 and its 200 day moving average is GBX 1,216.67. The company has a current ratio of 3.99, a quick ratio of 1.04 and a debt-to-equity ratio of 0.46. The stock has a market capitalization of £3.51 billion, a price-to-earnings ratio of 12.39, a price-to-earnings-growth ratio of 0.83 and a beta of 1.39.

Insider Activity

In other news, insider Dean K. Finch sold 60,000 shares of Persimmon stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of GBX 1,119, for a total transaction of £671,400. Insiders own 2.63% of the company's stock.

Persimmon Company Profile

Persimmon Plc, together with its subsidiaries, operates as a house builder in the United Kingdom. The company offers family housing under the Persimmon Homes brand name; housing under the Charles Church brand name; and social housing under the Westbury Partnerships brand name. It also provides broadband services under the FibreNest brand; and timber frame, insulated wall panels, and roof cassettes under the brand Space4. Further, it offers concrete bricks and roof tile. Persimmon Plc was founded in 1972 and is headquartered in York, the United Kingdom.

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