Bellway (LON:BWY) Stock Crosses Above Two Hundred Day Moving Average - Here's Why

Key Points

• Bellway shares crossed above their 200-day moving average, reaching GBX 2,132 before last trading at GBX 2,058 on volume of 7.27 million shares.
• Analysts remain broadly optimistic, with six Buy ratings and three Holds. The stock has an average “Moderate Buy” rating and a consensus price target of GBX 2,522.33.
• Bellway reported a £2.30 billion market capitalization and approved a stock buyback plan; however, the authorization permits the company to repurchase zero shares.

Bellway p.l.c. (LON:BWY - Get Free Report) crossed above its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of GBX 2,042.83 and traded as high as GBX 2,132. Bellway shares last traded at GBX 2,058, with a volume of 7,270,038 shares.

Wall Street Analysts Forecast Growth

A number of analysts have commented on the stock. Berenberg Bank reaffirmed a "buy" rating and set a GBX 2,400 price target on shares of Bellway in a research report on Friday, June 26th. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and issued a GBX 2,917 price objective on shares of Bellway in a research report on Wednesday, August 12th. Jefferies Financial Group cut their target price on Bellway from GBX 2,394 to GBX 2,380 and set a "buy" rating on the stock in a research report on Wednesday, August 12th. JPMorgan Chase & Co. cut Bellway to an "overweight" rating and decreased their target price for the stock from GBX 3,480 to GBX 2,410 in a research note on Tuesday, June 16th. Finally, Citigroup lifted their target price on Bellway from GBX 2,300 to GBX 2,500 and gave the stock a "buy" rating in a report on Wednesday, August 12th. Six equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of GBX 2,522.33.

Bellway Stock Performance

The company has a market capitalization of £2.30 billion, a price-to-earnings ratio of 15.64, a P/E/G ratio of 3.40 and a beta of 1.37. The company has a 50 day moving average price of GBX 2,041.20 and a 200 day moving average price of GBX 2,042.83. The company has a debt-to-equity ratio of 5.39, a quick ratio of 0.50 and a current ratio of 5.26.

Bellway announced that its board has approved a stock buyback plan on Tuesday, September 1st that permits the company to buyback 0 shares. This buyback authorization permits the company to buy shares of its stock through open market purchases. Stock buyback plans are usually an indication that the company's leadership believes its stock is undervalued.

About Bellway

Bellway p.l.c., together with its subsidiaries, engages in the home building business in the United Kingdom. The company builds and sells homes ranging from one-bedroom apartments to six-bedroom family homes, as well as provides homes to housing associations for social housing. It offers homes under Bellway, Ashberry, and Bellway London brands. The company was founded in 1946 and is headquartered in Newcastle upon Tyne, the United Kingdom.

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