Inchcape (LON:INCH) Shares Cross Below 200 Day Moving Average - Time to Sell?

Key Points

• Inchcape shares fell below their 200-day moving average, trading as low as GBX 731.50 compared with the average of GBX 808.66, signaling recent technical weakness.
• Despite the decline, analysts remain broadly positive: four rate the stock a Buy and two a Hold, producing a consensus “Moderate Buy” rating and an average price target of GBX 1,057.40.
• The company reported quarterly EPS of GBX 35.50, a 2.44% net margin and 19.59% return on equity; insider Tracy Clarke also bought 3,029 shares at GBX 819 each.

Shares of Inchcape plc (LON:INCH - Get Free Report) crossed below its two hundred day moving average during trading on Monday. The stock has a two hundred day moving average of GBX 808.66 and traded as low as GBX 731.50. Inchcape shares last traded at GBX 732, with a volume of 552,677 shares changing hands.

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on the stock. Berenberg Bank reaffirmed a "buy" rating and issued a GBX 1,170 price objective on shares of Inchcape in a research report on Tuesday, July 28th. Jefferies Financial Group reissued a "buy" rating and set a GBX 1,050 target price on shares of Inchcape in a research report on Wednesday, July 29th. Deutsche Bank Aktiengesellschaft raised their target price on shares of Inchcape from GBX 830 to GBX 870 and gave the company a "hold" rating in a research note on Wednesday, July 29th. Finally, Citigroup upped their price target 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 investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of GBX 1,057.40.

Inchcape Trading Up 0.1%

The stock has a market cap of £2.53 billion, a price-to-earnings ratio of 11.55, 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 company's fifty day moving average price is GBX 816.23 and its 200-day moving average price is GBX 808.66.

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

Inchcape declared that its board has initiated a stock repurchase plan on Tuesday, July 28th that permits the company to repurchase 0 outstanding shares. This repurchase authorization permits the company to purchase 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.

Insider Transactions at Inchcape

In other 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 price of GBX 819 per share, with a total value of £24,807.51. 9.43% of the stock is owned by company insiders.

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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