Shore Capital Group Reiterates Buy Rating for Capita (LON:CPI)

Key Points

• Shore Capital reissued a Buy rating on Capita, and analysts' consensus is a Moderate Buy with an average price target of GBX 464.20 (four Buy, two Hold).
• Shares trade at GBX 279.56 (market cap £318m) and the company shows weak financials — P/E of -1.94, negative net margin (-7.45%) and ROE of -142.88% — alongside a very high debt-to-equity ratio (964.14).
• Insiders purchased a total of 58,718 shares over the last quarter and now own 13.40% of the stock, indicating notable insider buying activity.

Capita (LON:CPI - Get Free Report)'s stock had its "buy" rating reissued by equities research analysts at Shore Capital Group in a research note issued on Thursday,London Stock Exchange reports.

A number of other research firms have also recently weighed in on CPI. Royal Bank Of Canada reaffirmed an "outperform" rating and set a GBX 450 price target on shares of Capita in a report on Friday, March 27th. Deutsche Bank Aktiengesellschaft lifted their price target on Capita from GBX 300 to GBX 320 and gave the company a "hold" rating in a report on Friday, March 27th. Berenberg Bank decreased their price objective on shares of Capita to GBX 330 and set a "hold" rating on the stock in a report on Wednesday, March 11th. Finally, Canaccord Genuity Group restated a "buy" rating and issued a GBX 900 price objective on shares of Capita in a research report on Friday, March 27th. Four equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, Capita currently has a consensus rating of "Moderate Buy" and an average target price of GBX 464.20.

Capita Price Performance

LON:CPI traded down GBX 15.94 on Thursday, reaching GBX 279.56. The stock had a trading volume of 954,354 shares, compared to its average volume of 1,650,571. The company has a market capitalization of £318.00 million, a P/E ratio of -1.94, a price-to-earnings-growth ratio of 0.18 and a beta of 0.80. Capita has a 1-year low of GBX 180.02 and a 1-year high of GBX 415.50. The company has a quick ratio of 0.53, a current ratio of 0.54 and a debt-to-equity ratio of 964.14. The stock has a fifty day moving average price of GBX 299.05 and a 200-day moving average price of GBX 337.91.

Capita (LON:CPI - Get Free Report) last posted its quarterly earnings data on Tuesday, March 10th. The company reported GBX 49.71 earnings per share for the quarter. Capita had a negative net margin of 7.45% and a negative return on equity of 142.88%.

Insider Buying and Selling

In other news, insider Adolfo Hernandez bought 34,540 shares of the stock in a transaction on Friday, March 13th. The stock was purchased at an average price of GBX 279 per share, with a total value of £96,366.60. Also, insider Pablo Andres bought 12,178 shares of the stock in a transaction on Wednesday, March 11th. The stock was purchased at an average cost of GBX 280 per share, with a total value of £34,098.40. Insiders purchased a total of 58,718 shares of company stock worth $16,346,500 over the last quarter. 13.40% of the stock is currently owned by corporate insiders.

About Capita

Capita is a modern outsourcer, helping clients across the public and private sectors run complex business processes more efficiently, creating better consumer experiences. Operating across 8 countries, Capita's colleagues support primarily UK and European clients with people-based services underpinned by market-leading technology. We play an integral role in society - our work matters to the lives of the millions of people who rely on us every day.

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