Persimmon (LON:PSN) Shares Climb 14.9% - Should You Buy?

Key Points

• Persimmon shares surged 14.9% to GBX 1,327, with about 8.05 million shares traded during midday trading.
• Analyst sentiment remains positive: nine analysts rate the stock a Buy and one rates it Hold, producing a “Moderate Buy” consensus and an average price target of GBX 2,564.30.
• The company reported quarterly earnings of GBX 38 per share, alongside a 7.68% net margin and 8.45% return on equity; analysts expect approximately GBX 98.28 in full-year EPS.

Persimmon Plc (LON:PSN - Get Free Report) shares traded up 14.9% on Monday. The stock traded as high as GBX 1,357.50 and last traded at GBX 1,327. Approximately 8,045,840 shares traded hands during mid-day trading, a decline of 32% from the average daily volume of 11,791,588 shares. The stock had previously closed at GBX 1,154.50.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on the company. Royal Bank Of Canada reissued an "outperform" rating and set a GBX 1,350 price target on shares of Persimmon in a research report on Friday, August 7th. JPMorgan Chase & Co. lowered their price objective on shares of Persimmon from GBX 1,800 to GBX 1,430 and set an "overweight" rating for the company in a research report on Tuesday, June 16th. Citigroup lowered their target price on Persimmon from £161.50 to £128 and set a "buy" rating for the company in a research note on Tuesday, June 23rd. Jefferies Financial Group reaffirmed a "buy" rating and set a GBX 1,590 target price on shares of Persimmon in a research report on Monday. Finally, Deutsche Bank Aktiengesellschaft cut their price target on Persimmon from GBX 1,419 to GBX 1,403 and set a "buy" rating on the stock in a research note on Friday, August 7th. Nine equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to MarketBeat.com, Persimmon currently has an average rating of "Moderate Buy" and an average target price of GBX 2,564.30.

Persimmon Stock Up 14.9%

The company has a debt-to-equity ratio of 8.08, a current ratio of 4.21 and a quick ratio of 1.04. The stock has a market capitalization of £4.26 billion, a price-to-earnings ratio of 14.09, a PEG ratio of 0.83 and a beta of 1.40. The firm's fifty day moving average is GBX 1,140.49 and its 200-day moving average is GBX 1,111.82.

Persimmon (LON:PSN - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The company reported GBX 38 earnings per share for the quarter. Persimmon had a net margin of 7.68% and a return on equity of 8.45%. On average, sell-side analysts predict that Persimmon Plc will post 98.2810615 earnings per share for the current year.

Persimmon Company Profile

Persimmon Plc, together with its subsidiaries, operates as a house builder in the United Kingdom. The company offers family housing under the Persimmon Homes brand name; housing under the Charles Church brand name; and social housing under the Westbury Partnerships brand name. It also provides broadband services under the FibreNest brand; and timber frame, insulated wall panels, and roof cassettes under the brand Space4. Further, it offers concrete bricks and roof tile. Persimmon Plc was founded in 1972 and is headquartered in York, the United Kingdom.

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