Liontrust Asset Management (LON:LIO) Shares Climb 18.2% After Insider Buying Activity

Key Points

• Liontrust shares surged 18.2% to GBX 308 on trading volume more than three times the average after director Vinay Kumar Abrol bought 10,000 shares worth £28,500.
• The company’s planned acquisition of Hawksmoor’s fund-management and model-portfolio businesses for an initial £6 million, potentially rising to £10 million, is expected to expand assets and may enhance earnings.
• Analyst views remain mixed: Berenberg raised its price target to GBX 390 with a “buy” rating, while the overall consensus remains “hold” with a GBX 360 target price.

Liontrust Asset Management PLC (LON:LIO - Get Free Report)'s stock price rose 18.2% during trading on Wednesday following insider buying activity. The stock traded as high as GBX 310 and last traded at GBX 308. Approximately 2,333,252 shares changed hands during mid-day trading, an increase of 352% from the average session volume of 516,688 shares. The stock had previously closed at GBX 260.50.

Specifically, insider Vinay Kumar Abrol bought 10,000 shares of Liontrust Asset Management stock in a transaction on Wednesday, September 30th. The shares were acquired at an average price of GBX 285 per share, for a total transaction of £28,500.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on the stock. Royal Bank Of Canada boosted their target price on shares of Liontrust Asset Management from GBX 235 to GBX 270 and gave the company an "underperform" rating in a research note on Monday, July 6th. Berenberg Bank raised their price target on shares of Liontrust Asset Management from GBX 360 to GBX 390 and gave the stock a "buy" rating in a research note on Wednesday. Finally, Deutsche Bank Aktiengesellschaft boosted their price objective on shares of Liontrust Asset Management from GBX 190 to GBX 205 and gave the company a "sell" rating in a research report on Thursday, June 25th. Three investment analysts have rated the stock with a Buy rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, Liontrust Asset Management currently has an average rating of "Hold" and a consensus target price of GBX 360.

Trending Headlines about Liontrust Asset Management

Here are the key news stories impacting Liontrust Asset Management this week:

• Positive Sentiment: Hawksmoor acquisition: Liontrust agreed to acquire Hawksmoor Investment Management’s fund management and model portfolio services businesses for an initial £6 million, with total consideration potentially reaching £10 million. The deal would expand Liontrust’s assets, distribution capabilities and presence in the MPS market. Reports characterized the transaction as potentially earnings-enhancing, which appears to be the main catalyst for the stronger share price. Liontrust to buy Hawksmoor’s MPS and fund management businesses Liontrust Shares Jump on Hawksmoor Assets Acquisition, Earnings Boost
• Positive Sentiment: Higher price target: Berenberg raised its target for Liontrust from 360 pence to 390 pence and reiterated a “buy” rating. The upgrade signals expectations that the acquisition and improved earnings outlook could support further upside. Liontrust Asset Management Stock Price Target Raised at Berenberg Bank
• Positive Sentiment: Insider buying: Director Vinay Kumar Abrol purchased 10,000 shares at 285 pence, worth £28,500. The purchase may reinforce confidence in Liontrust’s valuation and prospects, although its size is modest relative to the company.
• Negative Sentiment: Earlier technical weakness: Liontrust had previously fallen below its 200-day moving average, a bearish technical signal. However, the acquisition news and subsequent buying interest appear to have outweighed that concern in the latest trading session. Liontrust Asset Management Stock Breaks Below 200-Day Moving Average

Liontrust Asset Management Trading Up 18.2%

The company has a debt-to-equity ratio of 2.54, a quick ratio of 1.35 and a current ratio of 1.34. The company has a market capitalization of £190.56 million, a P/E ratio of 20.01, a PEG ratio of -1.70 and a beta of 1.47. The company's fifty day simple moving average is GBX 295.67 and its 200-day simple moving average is GBX 289.61.

Liontrust Asset Management Company Profile

Liontrust Asset Management Plc is a publicly owned investment manager. The firm also launches equity, fixed income, , multi-asset and managed funds for its clients. It invests into the public equity and multi-asset markets across the globe. The firm was formerly known as River and Mercantile Investment Management Limited. Liontrust Asset Management Plc was founded in 1994 and is based in London, United Kingdom.

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.