Elementis (LON:ELM) Shares Cross Above 200-Day Moving Average - What's Next?

Key Points

• Elementis shares rose above their 200-day moving average, reaching GBX 181.20 before closing at GBX 179.08 on heavy volume of 52.8 million shares.
• Analyst sentiment is largely positive: four analysts rate the stock a Buy and one rates it Hold, producing a “Moderate Buy” consensus and an average price target of GBX 205.
• Elementis reported quarterly EPS of GBX 8.60, with a 12.16% net margin and 11.29% return on equity; analysts expect approximately GBX 9.50 in full-year EPS.

Elementis plc (LON:ELM - Get Free Report)'s share price crossed above its 200-day moving average during trading on Wednesday. The stock has a 200-day moving average of GBX 161.19 and traded as high as GBX 181.20. Elementis shares last traded at GBX 179.08, with a volume of 52,800,164 shares traded.

Analyst Upgrades and Downgrades

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

Elementis Stock Performance

The stock has a market capitalization of £1.02 billion, a PE ratio of 14.21, a price-to-earnings-growth ratio of 3.05 and a beta of 0.93. The firm's fifty day moving average is GBX 176.54 and its 200-day moving average is GBX 161.19. The company has a current ratio of 2.27, a quick ratio of 1.16 and a debt-to-equity ratio of 39.91.

Elementis (LON:ELM - Get Free Report) last posted its earnings results on Thursday, July 30th. The company reported GBX 8.60 EPS for the quarter. Elementis had a net margin of 12.16% and a return on equity of 11.29%. As a group, research analysts anticipate that Elementis plc will post 9.4993582 earnings per share for the current year.

Elementis announced that its board has initiated a share repurchase plan on Wednesday, June 3rd that authorizes the company to repurchase 0 outstanding shares. This repurchase authorization authorizes the company to repurchase shares of its stock through open market purchases. Shares repurchase plans are generally a sign that the company's board believes its shares are undervalued.

About Elementis

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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