Babcock International Group (LON:BAB) Reaches New 1-Year Low - Should You Sell?

Key Points

• Babcock International Group shares hit a new 52-week low, falling to GBX 891 before recovering slightly to GBX 902.26 during mid-day trading.
• Despite the decline, analysts remain positive: five analysts rate the stock a Buy, with Jefferies, Berenberg, Citigroup and RBC maintaining buy or outperform recommendations and price targets above the current level.
• Insider David Mellors sold 135,451 shares for approximately £1.34 million, while the company reported high leverage, including a debt-to-equity ratio of 178.86 and current and quick ratios below 1.

Babcock International Group PLC (LON:BAB - Get Free Report) shares hit a new 52-week low during mid-day trading on Wednesday. The stock traded as low as GBX 891 and last traded at GBX 902.26, with a volume of 2217608 shares changing hands. The stock had previously closed at GBX 906.60.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on the stock. Jefferies Financial Group reaffirmed a "buy" rating and set a GBX 1,400 target price on shares of Babcock International Group in a research note on Wednesday, July 1st. Berenberg Bank lowered their price objective on shares of Babcock International Group from GBX 1,675 to GBX 1,430 and set a "buy" rating for the company in a research report on Monday, August 3rd. Citigroup lifted their target price on shares of Babcock International Group from £155.40 to £155.60 and gave the company a "buy" rating in a report on Wednesday, June 24th. Finally, Royal Bank Of Canada lowered their price target on Babcock International Group from GBX 1,400 to GBX 1,390 and set an "outperform" rating for the company in a research report on Monday, July 20th. Five investment analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, the stock has a consensus rating of "Buy" and an average price target of GBX 4,256.

Babcock International Group Stock Performance

The firm has a market capitalization of £4.42 billion, a price-to-earnings ratio of 21.85, a PEG ratio of 1.35 and a beta of 0.86. The firm has a 50 day moving average price of GBX 1,057.13 and a 200-day moving average price of GBX 1,085.09. The company has a debt-to-equity ratio of 178.86, a current ratio of 0.80 and a quick ratio of 0.76.

Insiders Place Their Bets

In other Babcock International Group news, insider David Mellors sold 135,451 shares of Babcock International Group stock in a transaction dated Wednesday, September 30th. The stock was sold at an average price of GBX 989, for a total transaction of £1,339,610.39. 1.10% of the stock is currently owned by corporate insiders.

About Babcock International Group

Babcock International Group PLC, together with its subsidiaries, provides value-add services for aerospace, defense, and security in the United Kingdom, rest of Europe, Africa, North America, Australasia, and internationally. The company operates through four segments: Marine, Nuclear, Land, and Aviation. It designs, procures, operates, and manages critical utility and process equipment; offers asset management, defense and maritime training, information and intelligence, equipment and system, and facilities and infrastructure services, as well as naval platforms; and designs, manufactures, and provides through-life support for mechanical and electrical systems and equipment.

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