Secure Trust Bank (LON:STB) Shares Down 20.2% - Should You Sell?

Key Points

• Secure Trust Bank's shares fell 20.2%, trading at GBX 966 ($12.85), significantly down from a previous close of GBX 1,210 ($16.09).
• Analysts have set a consensus rating of "Buy" for Secure Trust Bank, with a target price of GBX 1,420.
• Insider Jim Brown purchased 20,000 shares at an average price of GBX 1,170, indicating confidence in the bank's future performance.

Shares of Secure Trust Bank PLC (LON:STB - Get Free Report) dropped 20.2% on Friday . The stock traded as low as GBX 942 ($12.53) and last traded at GBX 966 ($12.85). Approximately 848,824 shares traded hands during mid-day trading, an increase of 624% from the average daily volume of 117,200 shares. The stock had previously closed at GBX 1,210 ($16.09).

Analysts Set New Price Targets

STB has been the subject of several research analyst reports. Shore Capital reaffirmed a "house stock" rating on shares of Secure Trust Bank in a report on Thursday. Berenberg Bank reaffirmed a "buy" rating and issued a GBX 1,420 price objective on shares of Secure Trust Bank in a report on Monday, August 18th. One equities research analyst has rated the stock with a Buy rating, According to data from MarketBeat, the stock presently has a consensus rating of "Buy" and an average target price of GBX 1,420.

Secure Trust Bank Stock Performance

The company has a market capitalization of £180.05 million, a price-to-earnings ratio of 952.66, a P/E/G ratio of 0.11 and a beta of 0.87. The stock's fifty day simple moving average is GBX 1,106.38 and its two-hundred day simple moving average is GBX 855.14.

Secure Trust Bank (LON:STB - Get Free Report) last issued its quarterly earnings results on Thursday, August 14th. The company reported GBX 87.60 earnings per share for the quarter. Secure Trust Bank had a net margin of 7.20% and a return on equity of 7.43%. On average, equities analysts anticipate that Secure Trust Bank PLC will post 214.2857143 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider Jim Brown acquired 20,000 shares of the business's stock in a transaction on Tuesday, August 19th. The shares were purchased at an average price of GBX 1,170 per share, for a total transaction of £234,000. Insiders own 20.19% of the company's stock.

Secure Trust Bank Company Profile

Secure Trust Bank is an established, well‐funded and capitalised UK retail bank with over 70‐years of trading history. Secure Trust Bank operates principally from its head office in Solihull, West Midlands. The Group's diversified lending portfolio currently focuses on two sectors: • Business finance through its Real Estate Finance and Commercial Finance divisions, and • Consumer finance through its Vehicle Finance and Retail Finance divisions. Secure Trust Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Secure Trust Bank PLC, Yorke House, Arleston Way, Solihull, B90 4LH.

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