Inchcape (LON:INCH) Sets New 12-Month Low - Here's What Happened

Key Points

• Inchcape shares hit a new 52-week low, falling to GBX 664 before recovering slightly to GBX 673, well below the 50-day and 200-day moving averages of approximately GBX 814 and GBX 808.
• Analysts remain broadly positive, with four Buy ratings and two Holds, producing a “Moderate Buy” consensus and an average price target of GBX 1,057.40—substantially above the current price.
• The company reported quarterly earnings of GBX 35.50 per share, a 2.44% net margin and 19.59% return on equity; insider Tracy Clarke also purchased 3,029 shares at GBX 819 each.

Inchcape plc (LON:INCH - Get Free Report)'s stock price reached a new 52-week low during trading on Wednesday. The stock traded as low as GBX 664 and last traded at GBX 673, with a volume of 26769271 shares trading hands. The stock had previously closed at GBX 686.

Analyst Ratings Changes

Several equities analysts have commented on the stock. Berenberg Bank reissued a "buy" rating and set a GBX 1,170 target price on shares of Inchcape in a research report on Tuesday, July 28th. Jefferies Financial Group reaffirmed a "buy" rating and set a GBX 1,050 price target on shares of Inchcape in a research report on Wednesday, July 29th. Deutsche Bank Aktiengesellschaft lifted their price target on Inchcape from GBX 830 to GBX 870 and gave the stock a "hold" rating in a report on Wednesday, July 29th. Finally, Citigroup boosted their price objective on Inchcape from GBX 1,274 to GBX 1,277 and gave the stock a "buy" rating in a research report on Wednesday, July 29th. Four equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of GBX 1,057.40.

Inchcape Price Performance

The firm has a market cap of £2.28 billion, a PE ratio of 10.44, a P/E/G ratio of 2.06 and a beta of 0.97. The company has a debt-to-equity ratio of 125.11, a current ratio of 1.03 and a quick ratio of 0.51. The business's fifty day moving average is GBX 813.53 and its 200-day moving average is GBX 807.98.

Inchcape (LON:INCH - Get Free Report) last released its earnings results on Tuesday, July 28th. The company reported GBX 35.50 earnings per share for the quarter. Inchcape had a net margin of 2.44% and a return on equity of 19.59%. On average, research analysts predict that Inchcape plc will post 85.9639233 earnings per share for the current fiscal year.

Inchcape announced that its board has approved a share repurchase program on Tuesday, July 28th that authorizes the company to repurchase 0 outstanding shares. This repurchase authorization authorizes the company to buy shares of its stock through open market purchases. Shares repurchase programs are often a sign that the company's management believes its stock is undervalued.

Insider Buying and Selling

In other news, insider Tracy Clarke acquired 3,029 shares of Inchcape stock in a transaction on Tuesday, July 28th. The stock was acquired at an average cost of GBX 819 per share, with a total value of £24,807.51. Insiders own 9.43% of the company's stock.

About Inchcape

Inchcape is the leading global automotive distributor, with operations across six continents. By combining our in-market expertise with our unique technology and advanced data analytics, we create innovative customer experiences that deliver outstanding performance for our partners – building stronger automotive brands and creating sustainable growth. Our distribution platform connects the products of mobility company partners with customers, and our responsibilities span product planning and pricing, import and logistics, brand and marketing to operating digital sales, managing physical sales and aftermarket service channels.

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