Inchcape (LON:INCH) Sets New 52-Week Low - Here's Why

Key Points

• Inchcape shares hit a new 52-week low, falling to GBX 604.50 before recovering to GBX 635.50, well below the prior close of GBX 690.
• Analysts remain broadly optimistic, with three Buy ratings and one Hold rating producing a “Moderate Buy” consensus and an average price target of GBX 1,091.75.
• The company reported quarterly earnings of GBX 35.50 per share, while its valuation metrics include a P/E ratio of 10.06 and a debt-to-equity ratio of 125.11. An insider also purchased 3,029 shares at GBX 819 each.

Inchcape plc (LON:INCH - Get Free Report)'s share price hit a new 52-week low during trading on Thursday. The company traded as low as GBX 604.50 and last traded at GBX 635.50, with a volume of 12,882,479 shares. The stock had previously closed at GBX 690.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on INCH shares. Jefferies Financial Group reissued a "buy" rating and issued a GBX 1,050 target price on shares of Inchcape in a research note on Wednesday, July 29th. Citigroup raised their target price on Inchcape from GBX 1,274 to GBX 1,277 and gave the stock a "buy" rating in a report on Wednesday, July 29th. Berenberg Bank restated a "buy" rating and set a GBX 1,170 target price on shares of Inchcape in a research report on Tuesday, July 28th. Finally, Deutsche Bank Aktiengesellschaft upped their price target on Inchcape from GBX 830 to GBX 870 and gave the company a "hold" rating in a research note on Wednesday, July 29th. Three analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of GBX 1,091.75.

Inchcape Price Performance

The company's 50 day simple moving average is GBX 778.15 and its 200 day simple moving average is GBX 799.71. 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 stock has a market cap of £2.17 billion, a P/E ratio of 10.06, a P/E/G ratio of 2.06 and a beta of 0.97.

Inchcape (LON:INCH - Get Free Report) last announced its quarterly 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%. As a group, equities analysts forecast that Inchcape plc will post 85.96 earnings per share for the current year.

Inchcape announced that its Board of Directors has approved a stock buyback program on Tuesday, July 28th that allows the company to buy back 0 outstanding shares. This buyback authorization allows the company to repurchase shares of its stock through open market purchases. Share buyback programs are often an indication that the company's leadership believes its shares are undervalued.

Insider Transactions at Inchcape

In other Inchcape news, insider Tracy Clarke purchased 3,029 shares of the stock in a transaction on Tuesday, July 28th. The stock was bought at an average cost of GBX 819 per share, for a total transaction of £24,807.51. Insiders own 13.75% of the company's stock.

Inchcape Company Profile

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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