The Berkeley Group (LON:BKG) Stock Price Down 17.2% - Should You Sell?

Key Points

• Shares fell 17.2% to GBX 2,844 on Wednesday with volume up ~235% (3.71M shares), signaling a sharp market sell-off versus the prior close of GBX 3,436.
• Analysts are mixed—four Buys and two Sells lead to a consensus "Hold" with a consensus target of GBX 4,399.83; notable moves include JPMorgan raising its rating to Overweight (PT GBX 5,000) while RBC cut to Underperform (PT GBX 3,700).
• The stock appears relatively cheap on earnings with a PE of 7.83 and market cap £2.72bn, but liquidity and leverage metrics (quick ratio 0.57, debt-to-equity 18.94) suggest short-term liquidity constraints and significant leverage.

The Berkeley Group Holdings plc (LON:BKG - Get Free Report)'s share price fell 17.2% during trading on Wednesday . The company traded as low as GBX 2,810 and last traded at GBX 2,844.08. 3,712,125 shares changed hands during trading, an increase of 235% from the average session volume of 1,107,562 shares. The stock had previously closed at GBX 3,436.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on BKG. JPMorgan Chase & Co. raised The Berkeley Group to an "overweight" rating and raised their price target for the stock from GBX 4,700 to GBX 5,000 in a research note on Wednesday, February 4th. Bank of America upgraded shares of The Berkeley Group to a "buy" rating and decreased their price objective for the stock from GBX 4,080 to GBX 4,020 in a report on Monday. Finally, Royal Bank Of Canada cut shares of The Berkeley Group to an "underperform" rating and dropped their target price for the stock from GBX 4,900 to GBX 3,700 in a research report on Tuesday, December 2nd. Four investment analysts have rated the stock with a Buy rating and two have issued a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of GBX 4,399.83.

The Berkeley Group Price Performance

The stock has a market cap of £2.72 billion, a PE ratio of 7.83, a P/E/G ratio of -0.87 and a beta of 1.19. The business has a fifty day simple moving average of GBX 4,010.30 and a two-hundred day simple moving average of GBX 3,925.49. The company has a current ratio of 3.54, a quick ratio of 0.57 and a debt-to-equity ratio of 18.94.

About The Berkeley Group

At Berkeley Group we build homes and neighbourhoods across London, Birmingham and the South of England. Our passion and purpose is to build quality homes, strengthen communities and make a positive difference to people's lives. We use our sustained commercial success to make valuable and enduring contributions that benefit all our stakeholders. We specialise in brownfield regeneration, working closely with local communities and councils to revive underused land and create homes where they are needed most.

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