Telecom Plus (LON:TEP) Stock Price Passes Below 200-Day Moving Average - Should You Sell?

Key Points

• Telecom Plus shares fell below their 200-day moving average, trading as low as GBX 791 and last changing hands at GBX 812.87. The move came on heavy volume of more than 31.8 million shares.
• Analyst sentiment has weakened, with Deutsche Bank and Berenberg both cutting their ratings and lowering price targets. The consensus view remains “Moderate Buy,” but the average target has been trimmed to GBX 1,500.
• Insiders have been buying stock, including major purchases by Charles Wigoder and Stuart Burnett in late June. Over the past 90 days, insiders bought a total of 579,125 shares, suggesting some internal confidence despite the price drop.

Telecom Plus Plc (LON:TEP - Get Free Report) shares passed below its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of GBX 1,214.50 and traded as low as GBX 791. Telecom Plus shares last traded at GBX 812.87, with a volume of 31,871,076 shares traded.

Analyst Ratings Changes

A number of equities analysts have commented on TEP shares. Deutsche Bank Aktiengesellschaft cut shares of Telecom Plus to a "hold" rating and dropped their price objective for the stock from GBX 1,300 to GBX 700 in a research note on Wednesday, July 1st. Berenberg Bank downgraded shares of Telecom Plus to a "buy" rating and lowered their price target for the company from GBX 2,600 to GBX 1,200 in a report on Thursday, June 25th. Two investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of GBX 1,500.

Telecom Plus Trading Up 0.3%

The company has a 50-day moving average price of GBX 965.35 and a two-hundred day moving average price of GBX 1,214.50. The stock has a market cap of £647.04 million, a P/E ratio of 8.16, a P/E/G ratio of 2.86 and a beta of 0.43. The company has a current ratio of 1.58, a quick ratio of 1.28 and a debt-to-equity ratio of 87.91.

Telecom Plus (LON:TEP - Get Free Report) last issued its quarterly earnings results on Wednesday, June 24th. The company reported GBX 102.20 earnings per share (EPS) for the quarter. The company had revenue of GBX 194.11 billion during the quarter. Telecom Plus had a return on equity of 32.38% and a net margin of 4.16%. On average, research analysts expect that Telecom Plus Plc will post 118.0645161 EPS for the current fiscal year.

Insider Activity

In other news, insider Charles Wigoder acquired 500,000 shares of Telecom Plus stock in a transaction that occurred on Tuesday, June 23rd. The shares were bought at an average cost of GBX 710 per share, with a total value of £3,550,000. Also, insider Stuart Burnett acquired 22,184 shares of the firm's stock in a transaction on Tuesday, June 23rd. The stock was purchased at an average cost of GBX 704 per share, with a total value of £156,175.36. Insiders have bought a total of 579,125 shares of company stock worth $410,818,365 over the last 90 days. Insiders own 14.60% of the company's stock.

About Telecom Plus

Telecom Plus Plc provides a range of utility services in the United Kingdom. It offers various services, including gas, electricity, fixed line telephony, mobile telephony, broadband, and insurance, as well as bill protection and life cover, home insurance and boiler cover, and cashback card services under the Utility Warehouse and TML brands. Telecom Plus Plc was incorporated in 1996 and is based in London, the United Kingdom.

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