Share Buyback Program Announced by Inchcape (LON:INCH) Board

Key Points

• Inchcape’s board authorized a share buyback program, although the announcement states the company plans to repurchase zero shares.
• Analysts remain broadly positive: five rate Inchcape “Buy” and one rates it “Hold,” producing a “Moderate Buy” consensus and an average target price of GBX 1,060.
• Inchcape shares rose 0.9% to GBX 829.50, while the company reported a £2.90 billion market capitalization and a 12-month trading range of GBX 640.50 to GBX 895.

Inchcape (LON:INCH - Get Free Report) announced that its board has authorized a stock repurchase program on Tuesday, July 28th, RTT News reports. The company plans to buyback 0 shares. This buyback authorization authorizes the company to repurchase shares of its stock through open market purchases. Shares buyback programs are generally an indication that the company's leadership believes its stock is undervalued.

Analyst Ratings Changes

INCH has been the topic of a number of recent analyst reports. Berenberg Bank reaffirmed a "buy" rating and set a GBX 1,170 target price on shares of Inchcape in a research report on Tuesday. Jefferies Financial Group reiterated a "buy" rating and issued a GBX 1,050 price target on shares of Inchcape in a research report on Thursday, April 30th. Five equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of GBX 1,060.

Inchcape Trading Up 0.9%

Shares of LON:INCH traded up GBX 7.50 during mid-day trading on Tuesday, hitting GBX 829.50. The stock had a trading volume of 1,961,688 shares, compared to its average volume of 6,384,264. The company has a debt-to-equity ratio of 100.56, a quick ratio of 0.51 and a current ratio of 1.07. The company has a market cap of £2.90 billion, a PE ratio of 11.59, a P/E/G ratio of 2.06 and a beta of 0.97. Inchcape has a 12-month low of GBX 640.50 and a 12-month high of GBX 895. The company's 50 day moving average is GBX 807.44 and its 200-day moving average is GBX 811.28.

Insider Transactions at Inchcape

In other Inchcape news, insider Adrian Lewis sold 45,674 shares of the business's stock in a transaction on Tuesday, May 5th. The shares were sold at an average price of GBX 830, for a total transaction of £379,094.20. 13.39% of the stock is currently owned by company insiders.

About Inchcape

Inchcape is the leading global automotive distributor, with operations across six continents. By combining our in-market expertise with our unique technology and advanced data analytics, we create innovative customer experiences that deliver outstanding performance for our partners – building stronger automotive brands and creating sustainable growth. Our distribution platform connects the products of mobility company partners with customers, and our responsibilities span product planning and pricing, import and logistics, brand and marketing to operating digital sales, managing physical sales and aftermarket service channels.

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