Persimmon (LON:PSN) Shares Cross Above 200 Day Moving Average - Should You Sell?

Key Points

• Persimmon shares moved above their 200-day moving average, reaching GBX 1,171 before last trading at GBX 1,148.50, although the stock was reported down 1.6%.
• Analyst sentiment remains positive: nine analysts rate the stock a Buy and one rates it Hold, producing a consensus “Moderate Buy” rating. Several firms lowered their price targets, but targets generally remain above the current share price.
• Persimmon reported quarterly EPS of GBX 38, with a 7.68% net margin and 8.45% return on equity; analysts expect full-year EPS of approximately GBX 98.3.

Persimmon Plc (LON:PSN - Get Free Report)'s share price passed above its 200-day moving average during trading on Thursday. The stock has a 200-day moving average of GBX 1,112.40 and traded as high as GBX 1,171. Persimmon shares last traded at GBX 1,148.50, with a volume of 52,908,754 shares.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on PSN. Citigroup lowered their target price on shares of Persimmon from £161.50 to £128 and set a "buy" rating on the stock in a research note on Tuesday, June 23rd. Deutsche Bank Aktiengesellschaft cut their target price on shares of Persimmon from GBX 1,419 to GBX 1,403 and set a "buy" rating for the company in a research report on Friday, August 7th. JPMorgan Chase & Co. decreased their price target on shares of Persimmon from GBX 1,800 to GBX 1,430 and set an "overweight" rating for the company in a report on Tuesday, June 16th. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a GBX 1,350 price target on shares of Persimmon in a research report on Friday, August 7th. Finally, Jefferies Financial Group dropped their price objective on Persimmon from GBX 1,591 to GBX 1,590 and set a "buy" rating on the stock in a research note on Wednesday, August 12th. Nine analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of GBX 2,564.30.

Persimmon Trading Down 1.6%

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 company has a market capitalization of £3.69 billion, a price-to-earnings ratio of 12.19, a price-to-earnings-growth ratio of 0.83 and a beta of 1.40. The business has a fifty day moving average price of GBX 1,139.15 and a 200 day moving average price of GBX 1,112.40.

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

About Persimmon

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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