The Gym Group (LON:GYM) Stock Price Passes Above 50-Day Moving Average - Here's Why

Key Points

• The Gym Group shares moved above their 50-day moving average (50‑day MA GBX 173.75), trading as high as GBX 177.40 and last at GBX 175 on volume of 358,899 shares.
• Analysts are broadly bullish—five firms rate the stock a Buy, several have raised targets (Deutsche Bank to GBX 230, Berenberg to GBX 235, RBC to GBX 200) and the consensus price target is GBX 209.
• Company fundamentals include a market cap of £312.9M, a trailing P/E of 43.6 and high leverage (debt-to-equity 289.13); the firm reported quarterly EPS of GBX 5.60 and announced a share buyback program.

The Gym Group plc (LON:GYM - Get Free Report) shares passed above its 50-day moving average during trading on Tuesday . The stock has a 50-day moving average of GBX 173.75 and traded as high as GBX 177.40. The Gym Group shares last traded at GBX 175, with a volume of 358,899 shares trading hands.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on the company. Deutsche Bank Aktiengesellschaft lifted their price target on The Gym Group from GBX 210 to GBX 230 and gave the company a "buy" rating in a research report on Thursday, March 12th. Shore Capital Group reissued a "buy" rating on shares of The Gym Group in a research report on Thursday, March 19th. Royal Bank Of Canada raised The Gym Group to an "outperform" rating and raised their price objective for the company from GBX 155 to GBX 200 in a research report on Friday, January 16th. Finally, Berenberg Bank boosted their target price on shares of The Gym Group from GBX 230 to GBX 235 and gave the company a "buy" rating in a report on Tuesday, March 24th. Five research analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the stock presently has an average rating of "Buy" and a consensus price target of GBX 209.

The Gym Group Stock Up 2.1%

The company has a market capitalization of £312.93 million, a PE ratio of 43.56, a P/E/G ratio of -12.95 and a beta of 0.96. The company has a debt-to-equity ratio of 289.13, a quick ratio of 0.27 and a current ratio of 0.15. The company's 50-day moving average is GBX 173.75 and its 200 day moving average is GBX 155.46.

The Gym Group (LON:GYM - Get Free Report) last issued its earnings results on Wednesday, March 11th. The company reported GBX 5.60 earnings per share (EPS) for the quarter. The Gym Group had a net margin of 3.02% and a return on equity of 5.35%. As a group, analysts anticipate that The Gym Group plc will post 0.2851177 EPS for the current year.

The Gym Group announced that its board has approved a share buyback program on Thursday, January 15th that allows the company to repurchase 0 shares. This repurchase authorization allows the company to buy shares of its stock through open market purchases. Shares repurchase programs are generally an indication that the company's management believes its shares are undervalued.

The Gym Group Company Profile

The Gym Group plc, together with its subsidiaries, operates a network of gym facilities under the Gym Group brand name in the United Kingdom. The company was founded in 2007 and is based in Croydon, the United Kingdom.

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