J Sainsbury (LON:SBRY) Stock Breaks Above 50-Day Moving Average - What's Next?

Key Points

• J Sainsbury shares rose 1.7% and crossed above their 50-day moving average, trading as high as GBX 344.88 before closing at GBX 343.80.
• Analyst sentiment remains generally positive, with a consensus “Moderate Buy” rating and a GBX 356 price target. Deutsche Bank downgraded the stock to “Hold,” while Citigroup raised its target to GBX 346.
• The company approved a £100 million share buyback, allowing repurchases of up to 1.3% of outstanding shares; an insider also bought shares, while another insider sold 560,000 shares.

J Sainsbury plc (LON:SBRY - Get Free Report)'s stock price crossed above its 50 day moving average during trading on Friday. The stock has a 50 day moving average of GBX 338.33 and traded as high as GBX 344.88. J Sainsbury shares last traded at GBX 343.80, with a volume of 13,657,762 shares traded.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on SBRY shares. Shore Capital Group reaffirmed a "house stock" rating on shares of J Sainsbury in a research note on Friday, July 31st. Deutsche Bank Aktiengesellschaft cut shares of J Sainsbury to a "hold" rating and lowered their price target for the stock from GBX 390 to GBX 365 in a research report on Tuesday. Finally, Citigroup boosted their price target on shares of J Sainsbury from GBX 330 to GBX 346 and gave the stock a "neutral" rating in a research note on Friday, August 7th. Three investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of GBX 356.

J Sainsbury Trading Up 1.7%

The company's fifty day simple moving average is GBX 338.33 and its two-hundred day simple moving average is GBX 333.76. The company has a quick ratio of 0.53, a current ratio of 0.59 and a debt-to-equity ratio of 115.36. The company has a market capitalization of £7.49 billion, a price-to-earnings ratio of 20.34, a price-to-earnings-growth ratio of 0.42 and a beta of 1.00.

J Sainsbury (LON:SBRY - Get Free Report) last announced its quarterly earnings results on Thursday, October 22nd. The grocer reported GBX 9.50 earnings per share for the quarter. J Sainsbury had a net margin of 1.15% and a return on equity of 6.39%. Research analysts forecast that J Sainsbury plc will post 25.72 earnings per share for the current fiscal year.

J Sainsbury announced that its Board of Directors has approved a stock buyback program on Friday, October 23rd that allows the company to buy back £100 million in outstanding shares. This buyback authorization allows the grocer to repurchase up to 1.3% 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 Buying and Selling at J Sainsbury

In other J Sainsbury news, insider Katie Bickerstaffe bought 5,732 shares of the firm's stock in a transaction on Thursday, October 22nd. The stock was purchased at an average cost of GBX 347 per share, with a total value of £19,890.04. Also, insider Simon Roberts sold 560,000 shares of the business's stock in a transaction dated Friday, October 23rd. The shares were sold at an average price of GBX 350, for a total value of £1,960,000. Company insiders own 0.47% of the company's stock.

J Sainsbury Company Profile

J Sainsbury plc is one of the UK's leading food, general merchandise and clothing retailers. Offering delicious, great quality food at competitive prices has been at the heart of what we do since we opened our first store in 1869. Today, inspiring and delighting our customers with tasty food remains our priority. Our purpose is that driven by our passion for food, together we serve and help every customer. Our focus on great value food and convenient shopping, whether in-store or online is supported by our brands – Argos, Habitat, Tu, Nectar and Sainsbury's Bank.

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