Elementis (LON:ELM) Shares Cross Above Two Hundred Day Moving Average - Should You Sell?

Key Points

• Elementis shares rose above their 200-day moving average, reaching GBX 182.60 before closing at GBX 176.93, compared with the 200-day average of GBX 159.77.
• Analyst sentiment is broadly 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.
• The company reported quarterly EPS of GBX 8.60, a 12.16% net margin and an 11.29% return on equity; however, its announced share buyback authorization permits repurchases of zero shares.

Elementis plc (LON:ELM - Get Free Report) crossed above its two hundred day moving average during trading on Friday . The stock has a two hundred day moving average of GBX 159.77 and traded as high as GBX 182.60. Elementis shares last traded at GBX 176.93, with a volume of 1,408,373 shares.

Analyst Upgrades and Downgrades

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

Elementis Stock Performance

The stock has a market capitalization of £1.01 billion, a PE ratio of 14.04, a P/E/G ratio of 3.05 and a beta of 0.93. 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 business's fifty day moving average price is GBX 170.75 and its 200-day moving average price is GBX 159.77.

Elementis (LON:ELM - Get Free Report) last issued its quarterly earnings data 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, equities research analysts expect that Elementis plc will post 9.4993582 EPS for the current year.

Elementis declared that its Board of Directors has approved a stock buyback plan on Wednesday, June 3rd that permits the company to repurchase 0 shares. This repurchase authorization permits the company to repurchase shares of its stock through open market purchases. Shares repurchase plans are often an indication that the company's board of directors believes its shares are undervalued.

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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