Elementis (LON:ELM) Share Price Breaks Above 200 Day Moving Average - Time to Sell?

Key Points

• Elementis shares broke above their 200-day moving average, reaching GBX 185.60 and last trading at GBX 185.20, compared with a 200-day average of GBX 163.74.
• Analyst sentiment is positive: four analysts rate the stock a Buy and one rates it Hold, with a consensus “Moderate Buy” rating and a GBX 205 target price.
• The company reported quarterly earnings of GBX 8.60 per share, with a 12.16% net margin and 11.29% return on equity; analysts expect full-year earnings of GBX 9.50 per share.

Shares of Elementis plc (LON:ELM - Get Free Report) passed above its 200-day moving average during trading on Friday. The stock has a 200-day moving average of GBX 163.74 and traded as high as GBX 185.60. Elementis shares last traded at GBX 185.20, with a volume of 707,130 shares changing hands.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on the company. Berenberg Bank raised their target price on Elementis from GBX 195 to GBX 220 and gave the stock a "buy" rating in a research report on Friday, July 31st. Deutsche Bank Aktiengesellschaft upped their price target on shares of Elementis from GBX 200 to GBX 215 and gave the company a "buy" rating in a research report on Friday, July 31st. JPMorgan Chase & Co. upped their price target on shares of Elementis from GBX 186 to GBX 190 and gave the company a "neutral" rating in a research report on Wednesday, August 12th. Finally, Jefferies Financial Group reiterated a "buy" rating and issued a GBX 210 price objective on shares of Elementis in a research note on Thursday, July 30th. Four investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of GBX 205.

Elementis Stock Up 1.0%

The company has a debt-to-equity ratio of 39.91, a current ratio of 2.27 and a quick ratio of 1.16. The firm has a market capitalization of £1.05 billion, a P/E ratio of 14.70, a P/E/G ratio of 3.05 and a beta of 0.93. The company's 50-day simple moving average is GBX 177.60 and its two-hundred day simple moving average is GBX 163.74.

Elementis (LON:ELM - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The company reported GBX 8.60 earnings per share for the quarter. Elementis had a net margin of 12.16% and a return on equity of 11.29%. As a group, research analysts expect that Elementis plc will post 9.50 earnings per share for the current year.

Elementis Company Profile

Elementis is a global specialty chemicals company listed on the London Stock Exchange. The Group employs c.1,000 across 20 global locations. As recognised innovation leaders with deep expertise in rheology (the science of flow), and formulation solutions, we develop distinctive solutions and products to improve performance, achieve smoother production, and enhance sustainability credentials for customers across a range of industries. The Group also owns and operates the largest high-quality hectorite mine in the world.

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