Derwent London (LON:DLN) Share Price Breaks Above 200-Day Moving Average - Should You Sell?

Key Points

• Derwent London shares rose above their 200-day moving average, reaching GBX 1,899 before closing at GBX 1,874, with unusually high trading volume of 11.4 million shares.
• Analyst sentiment remains mixed: three analysts rate the stock a Buy, four a Hold and one a Sell. The overall consensus is Hold, with a target price of GBX 1,912.29.
• The London-focused REIT owns 66 commercial properties valued at £4.9 billion, but reported quarterly EPS of negative GBX 16.59 and has relatively weak liquidity, including a quick ratio of 0.38.

Shares of Derwent London Plc (LON:DLN - Get Free Report) passed above its two hundred day moving average during trading on Friday. The stock has a two hundred day moving average of GBX 1,875.08 and traded as high as GBX 1,899. Derwent London shares last traded at GBX 1,874, with a volume of 11,418,870 shares changing hands.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on DLN shares. Jefferies Financial Group reaffirmed a "hold" rating and set a GBX 1,655 price target on shares of Derwent London in a research report on Thursday, October 15th. Berenberg Bank cut their price objective on Derwent London from GBX 2,210 to GBX 2,071 and set a "buy" rating on the stock in a research report on Monday, September 14th. Finally, Deutsche Bank Aktiengesellschaft restated a "hold" rating and issued a GBX 1,850 price objective on shares of Derwent London in a research note on Friday, August 7th. Three investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of GBX 1,912.29.

Derwent London Trading Up 0.6%

The firm's 50-day moving average price is GBX 1,887.50 and its 200-day moving average price is GBX 1,875.08. The company has a quick ratio of 0.38, a current ratio of 1.12 and a debt-to-equity ratio of 41.50. The company has a market cap of £2.06 billion, a P/E ratio of 43.83, a price-to-earnings-growth ratio of 23.10 and a beta of 1.19.

Derwent London (LON:DLN - Get Free Report) last announced its quarterly earnings results on Friday, August 7th. The real estate investment trust reported GBX (16.59) EPS for the quarter. Derwent London had a net margin of 11.97% and a return on equity of 1.35%. As a group, equities research analysts expect that Derwent London Plc will post 113.74 earnings per share for the current fiscal year.

About Derwent London

Derwent London plc owns 66 buildings in a commercial real estate portfolio predominantly in central London valued at £4.9 billion as at 31 December 2023, making it the largest London office-focused real estate investment trust (REIT). Our experienced team has a long track record of creating value throughout the property cycle by regenerating our buildings via development or refurbishment, effective asset management and capital recycling. We typically acquire central London properties off-market with low capital values and modest rents in improving locations, most of which are either in the West End or the Tech Belt.

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