Chemring Group (LON:CHG) Stock Crosses Below 200 Day Moving Average - Time to Sell?

Key Points

• Chemring Group shares fell below their 200-day moving average, reaching GBX 531 before closing at GBX 535, below the GBX 539.41 long-term average.
• Despite the technical weakness, analysts remain positive: five analysts rate the stock a “Buy,” with a consensus target of GBX 637 versus the current price.
• Company insiders recently sold shares, including transactions totaling more than £1.57 million, while insiders retain a 1.17% ownership stake.

Chemring Group PLC (LON:CHG - Get Free Report) shares passed below its 200-day moving average during trading on Monday. The stock has a 200-day moving average of GBX 539.41 and traded as low as GBX 531. Chemring Group shares last traded at GBX 535, with a volume of 422,846 shares traded.

Analysts Set New Price Targets

Several analysts recently commented on CHG shares. Jefferies Financial Group reaffirmed a "buy" rating and set a GBX 658 price objective on shares of Chemring Group in a research note on Friday, July 31st. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and issued a GBX 650 target price on shares of Chemring Group in a research note on Friday, June 26th. Royal Bank Of Canada increased their price target on Chemring Group from GBX 580 to GBX 680 and gave the stock an "outperform" rating in a report on Monday, August 10th. Finally, Berenberg Bank raised their price target on Chemring Group from GBX 590 to GBX 660 and gave the stock a "buy" rating in a research report on Monday, August 3rd. Five equities research analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, Chemring Group presently has a consensus rating of "Buy" and an average target price of GBX 637.

Chemring Group Price Performance

The company has a market cap of £1.45 billion, a price-to-earnings ratio of 43.50, a PEG ratio of 1.99 and a beta of 0.80. The company has a quick ratio of 0.70, a current ratio of 1.38 and a debt-to-equity ratio of 51.32. The company's fifty day moving average price is GBX 571.46 and its two-hundred day moving average price is GBX 539.41.

Insiders Place Their Bets

In related news, insider Michael Ord sold 200,000 shares of the business's stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of GBX 612, for a total value of £1,224,000. Also, insider Sarah Ellard sold 57,597 shares of the company's stock in a transaction on Monday, August 3rd. The stock was sold at an average price of GBX 602, for a total transaction of £346,733.94. Company insiders own 1.17% of the company's stock.

About Chemring Group

We are a specialist manufacturing and technology business creating market-leading innovative solutions to meet our customers' complex needs. Using our extensive science and engineering expertise, we turn ideas into reality, designing and developing critical solutions that protect and safeguard in unpredictable environments in today's increasingly unstable world. We achieve this by innovating at every stage of the value chain, from research and development (“R&D”) through to design, manufacture and in-service support, working closely with our customers to deliver products, services and solutions for mission-critical success. Our customer base spans national defence organisations, security and law enforcement agencies, as well as commercial markets such as space and transport.

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