Pennon Group (LON:PNN) Hits New 1-Year Low - Should You Sell?

Key Points

• Pennon Group shares fell 16.4%, hitting a new 52-week low of GBX 372 before recovering slightly to GBX 382, amid exceptionally high trading volume.
• Analysts remain broadly positive, with five Buy ratings and two Holds, but several firms recently reduced their price targets. The consensus rating is “Moderate Buy,” with a target price of GBX 1,297.14.
• The company has a £1.78 billion market capitalization and operates regulated clean- and wastewater services in southwest England, though its high debt-to-equity ratio of 347.81 may concern investors.

Shares of Pennon Group Plc (LON:PNN - Get Free Report) reached a new 52-week low during mid-day trading on Wednesday. The company traded as low as GBX 372 and last traded at GBX 382, with a volume of 143251922 shares changing hands. The stock had previously closed at GBX 452.

Analyst Ratings Changes

Several equities research analysts have commented on PNN shares. Citigroup dropped their price target on Pennon Group from GBX 6,560 to GBX 5,520 and set a "buy" rating for the company in a research note on Thursday, June 11th. Jefferies Financial Group decreased their target price on Pennon Group from GBX 590 to GBX 500 and set a "hold" rating for the company in a report on Monday, August 3rd. Royal Bank Of Canada reissued an "outperform" rating and set a GBX 575 target price on shares of Pennon Group in a research report on Tuesday, August 25th. Finally, Deutsche Bank Aktiengesellschaft cut their price target on shares of Pennon Group from GBX 620 to GBX 550 and set a "buy" rating on the stock in a report on Tuesday, June 16th. Five investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat.com, Pennon Group has a consensus rating of "Moderate Buy" and a consensus target price of GBX 1,297.14.

Pennon Group Trading Down 16.4%

The stock has a market capitalization of £1.78 billion, a price-to-earnings ratio of 19.59, a P/E/G ratio of 8.20 and a beta of 0.57. The company has a debt-to-equity ratio of 347.81, a quick ratio of 1.53 and a current ratio of 1.51. The firm has a fifty day moving average of GBX 459.43 and a 200-day moving average of GBX 490.74.

Insider Buying and Selling at Pennon Group

In other news, insider Laura Flowerdew sold 1,119 shares of the stock in a transaction dated Monday, July 20th. The stock was sold at an average price of GBX 493, for a total value of £5,516.67. Insiders bought a total of 96 shares of company stock valued at $44,883 over the last ninety days. 0.32% of the stock is owned by corporate insiders.

Pennon Group Company Profile

At the top end of the FTSE 250, Pennon is an infrastructure group, focused on the UK water market is one of only three listed water companies in the UK. Operating in a stable regulatory environment with a positive outlook, we are focused on long-term sustainable growth, through disciplined capital allocation, organic and acquisitive. Our 25-year rolling licence provides predictable index-linked growth and visibility over future revenues. We provide clean and wastewater services through our businesses across the Great South West.

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