Grafton Group (LON:GFTU) Shares Cross Below 200-Day Moving Average - Time to Sell?

Key Points

• Grafton Group shares fell below their 200-day moving average, trading as low as GBX 919 before recovering to GBX 941.80, raising a potential technical warning for investors.
• Despite the technical weakness, analysts remain positive: six analysts rate the stock a “Buy,” with recent price targets ranging from GBX 1,150 to GBX 1,315.
• The company has a £2.18 billion market capitalization and moderate leverage, while insider David Arnold recently sold 10,000 shares at GBX 953; the announced share-buyback authorization permits zero shares, according to the article.

Grafton Group plc (LON:GFTU - Get Free Report)'s share price crossed below its 200-day moving average during trading on Tuesday. The stock has a 200-day moving average of GBX 925.57 and traded as low as GBX 919. Grafton Group shares last traded at GBX 941.80, with a volume of 171,988 shares trading hands.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on the stock. Berenberg Bank lifted their price target on shares of Grafton Group from GBX 1,000 to GBX 1,150 and gave the stock a "buy" rating in a report on Wednesday, July 8th. Citigroup reduced their price objective on Grafton Group from £115 to £110 and set a "buy" rating for the company in a report on Friday, June 19th. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and issued a GBX 1,315 target price on shares of Grafton Group in a research report on Friday, September 4th. Finally, Peel Hunt restated a "buy" rating and issued a GBX 1,160 target price on shares of Grafton Group in a research note on Monday, July 13th. Six investment analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, Grafton Group currently has an average rating of "Buy" and a consensus price target of GBX 2,831.67.

Grafton Group Stock Up 0.9%

The stock's 50 day moving average is GBX 997.79 and its 200 day moving average is GBX 925.57. The company has a market capitalization of £2.18 billion, a PE ratio of 13.86, a PEG ratio of 1.58 and a beta of 1.08. The company has a debt-to-equity ratio of 43.55, a quick ratio of 1.56 and a current ratio of 1.83.

Grafton Group announced that its Board of Directors has initiated a share repurchase plan on Tuesday, June 30th that allows the company to buyback 0 outstanding shares. This buyback authorization allows the company to reacquire shares of its stock through open market purchases. Shares buyback plans are often a sign that the company's board of directors believes its stock is undervalued.

Insider Activity

In other Grafton Group news, insider David Arnold sold 10,000 shares of the stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of GBX 953, for a total transaction of £95,300. 9.33% of the stock is currently owned by corporate insiders.

About Grafton Group

Grafton Group plc engages in the distribution, retailing, and manufacturing businesses in Ireland, the Netherlands, Finland, and the United Kingdom. Its Distribution segment distributes building materials, paint, tools, ironmongery, fixings, and accessories, workwear and PPE, and spare parts; materials and plant for mechanical services, heating, plumbing, and air movement; and trade, DIY, and self-build markets with building materials, timber, doors and floors, plumbing and heating, bathrooms, and landscaping products under the Selco, Leyland SDM, Chadwicks, MacBlair, Isero, Polvo, Gunters en Meuser, TG Lynes, and IKH brands.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.