Pennon Group (LON:PNN) Reaches New 12-Month Low - Here's What Happened

Key Points

• Pennon Group shares hit a new 52-week low, falling to GBX 435.60 before recovering slightly to GBX 444.80, below both their 50-day and 200-day moving averages.
• Analyst sentiment remains broadly positive, with five Buy ratings and two Holds producing a consensus “Moderate Buy” rating, although several firms recently cut their price targets.
• The company has a £2.09 billion market capitalization and operates regulated clean- and wastewater businesses across southwest England, but carries a high debt-to-equity ratio of 347.81.

Pennon Group Plc (LON:PNN - Get Free Report)'s share price hit a new 52-week low during trading on Tuesday. The stock traded as low as GBX 435.60 and last traded at GBX 444.80, with a volume of 346118 shares trading hands. The stock had previously closed at GBX 445.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on PNN shares. Citigroup lowered their price objective on shares of 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. Royal Bank Of Canada reiterated an "outperform" rating and set a GBX 575 price objective on shares of Pennon Group in a research note on Tuesday, August 25th. Jefferies Financial Group reduced their price objective on shares of Pennon Group from GBX 590 to GBX 500 and set a "hold" rating for the company in a research note on Monday, August 3rd. UBS Group restated a "buy" rating and set a GBX 650 target price on shares of Pennon Group in a report on Friday, June 5th. Finally, Deutsche Bank Aktiengesellschaft dropped their target price on Pennon Group from GBX 620 to GBX 550 and set a "buy" rating on the stock in a research report on Tuesday, June 16th. Five analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, Pennon Group presently has a consensus rating of "Moderate Buy" and an average target price of GBX 1,297.14.

Pennon Group Stock Performance

The firm's 50 day moving average is GBX 462.25 and its 200 day moving average is GBX 494.92. 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 stock has a market cap of £2.09 billion, a P/E ratio of 22.90, a price-to-earnings-growth ratio of 8.20 and a beta of 0.57.

Insider Activity

In other news, insider Laura Flowerdew sold 1,119 shares of the company's stock in a transaction on Monday, July 20th. The stock was sold at an average price of GBX 493, for a total transaction of £5,516.67. Insiders acquired 96 shares of company stock worth $44,883 over the last 90 days. Corporate insiders own 0.32% of the company's stock.

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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