Capita (LON:CPI) Stock Passes Below 200 Day Moving Average - Here's Why

Key Points

• Capita shares fell below their 200-day moving average, trading as low as GBX 251.50 versus the average of GBX 296.56, with 2.65 million shares changing hands.
• Analyst sentiment remains mixed but leans positive: four analysts rate Capita a Buy and two rate it a Hold, producing a “Moderate Buy” consensus and an average price target of GBX 408.20.
• The company continues to show financial strain, including a negative net margin of 10.32%, negative return on equity of 677.10%, and a very high debt-to-equity ratio of 6,255.83.

Capita plc (LON:CPI - Get Free Report)'s share price passed below its two hundred day moving average during trading on Tuesday . The stock has a two hundred day moving average of GBX 296.56 and traded as low as GBX 251.50. Capita shares last traded at GBX 251.50, with a volume of 2,651,037 shares trading hands.

Wall Street Analyst Weigh In

CPI has been the topic of a number of recent research reports. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and set a GBX 260 target price on shares of Capita in a research note on Wednesday, August 5th. Canaccord Genuity Group reiterated a "buy" rating and set a GBX 750 price objective on shares of Capita in a research report on Wednesday, August 5th. Berenberg Bank dropped their target price on Capita from GBX 330 to GBX 270 and set a "hold" rating for the company in a report on Wednesday, August 5th. Finally, Peel Hunt restated a "buy" rating and issued a GBX 311 price target on shares of Capita in a research note on Tuesday, August 4th. Four equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of GBX 408.20.

Capita Stock Down 1.0%

The company has a market cap of £299.45 million, a P/E ratio of -1.43, a PEG ratio of 0.18 and a beta of 0.88. The stock has a 50-day moving average of GBX 265.01 and a 200 day moving average of GBX 296.56. The company has a debt-to-equity ratio of 6,255.83, a current ratio of 0.53 and a quick ratio of 0.53.

Capita (LON:CPI - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The company reported GBX 13.38 earnings per share for the quarter. Capita had a negative net margin of 10.32% and a negative return on equity of 677.10%.

Insider Transactions at Capita

In other news, insider Georgina Harvey acquired 2,880 shares of the firm's stock in a transaction that occurred on Monday, June 15th. The shares were acquired at an average cost of GBX 343 per share, with a total value of £9,878.40. 5.34% of the stock is owned by company insiders.

About Capita

Capita is a modern outsourcer, helping clients across the public and private sectors run complex business processes more efficiently, creating better consumer experiences. Operating across 8 countries, Capita's colleagues support primarily UK and European clients with people-based services underpinned by market-leading technology. We play an integral role in society - our work matters to the lives of the millions of people who rely on us every day.

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