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

Key Points

• Elementis shares crossed above their 200-day moving average, reaching GBX 183.80 before last trading at GBX 175 on volume of about 1.7 million shares.
• Analyst sentiment is broadly positive: four analysts rate the stock 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, with a 12.16% net margin and 11.29% return on equity; analysts expect full-year EPS of roughly GBX 9.50.

Elementis plc (LON:ELM - Get Free Report) crossed above its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of GBX 159.49 and traded as high as GBX 183.80. Elementis shares last traded at GBX 175, with a volume of 1,712,180 shares.

Wall Street Analysts Forecast Growth

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

Elementis Trading Down 2.6%

The company has a current ratio of 2.27, a quick ratio of 1.16 and a debt-to-equity ratio of 39.91. The stock has a market capitalization of £995.55 million, a price-to-earnings ratio of 13.89, a price-to-earnings-growth ratio of 3.05 and a beta of 0.93. The business has a 50 day simple moving average of GBX 168.51 and a 200-day simple moving average of GBX 159.49.

Elementis (LON:ELM - Get Free Report) last posted 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%. On average, equities analysts predict 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 shares. This repurchase authorization authorizes the company to repurchase shares of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's board 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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