The Sage Group (LON:SGE) Stock Price Passes Below 200-Day Moving Average - Should You Sell?

Key Points

• Shares of The Sage Group have crossed below their 200-day moving average, indicating potential concerns as they traded as low as GBX 1,084.50 ($14.65).
• Analysts have varied opinions on the stock with ratings ranging from "buy" to "sell", and the consensus price target is set at GBX 3,500 ($47.28).
• The company has initiated a share buyback plan, signaling that leadership believes the stock may be undervalued, which is typically seen as a positive indicator.

The Sage Group plc (LON:SGE - Get Free Report) shares passed below its two hundred day moving average during trading on Monday . The stock has a two hundred day moving average of GBX 1,228.96 ($16.61) and traded as low as GBX 1,084.50 ($14.66). The Sage Group shares last traded at GBX 1,096 ($14.81), with a volume of 2,115,087 shares changing hands.

Wall Street Analysts Forecast Growth

SGE has been the topic of several recent analyst reports. Deutsche Bank Aktiengesellschaft reissued a "hold" rating and set a GBX 1,350 price objective on shares of The Sage Group in a research note on Thursday, July 31st. JPMorgan Chase & Co. reaffirmed an "overweight" rating and set a GBX 1,500 price target on shares of The Sage Group in a research note on Wednesday, July 2nd. Shore Capital reissued a "hold" rating on shares of The Sage Group in a research report on Wednesday, July 30th. Canaccord Genuity Group dropped their price objective on shares of The Sage Group from GBX 1,090 to GBX 1,080 and set a "sell" rating for the company in a research report on Thursday, July 31st. Finally, Jefferies Financial Group reissued a "buy" rating and issued a GBX 1,480 price objective on shares of The Sage Group in a research report on Thursday, July 31st. Three analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, The Sage Group has a consensus rating of "Hold" and a consensus target price of GBX 3,500.

The Sage Group Stock Performance

The stock has a market cap of £10.90 billion, a price-to-earnings ratio of 42.80, a PEG ratio of 1.22 and a beta of 0.53. The company has a debt-to-equity ratio of 114.00, a quick ratio of 0.58 and a current ratio of 0.76. The company's 50 day simple moving average is GBX 1,209.59 and its 200 day simple moving average is GBX 1,222.58.

The Sage Group declared that its board has approved a stock buyback plan on Thursday, May 15th that authorizes the company to buyback 0 outstanding shares. This buyback authorization authorizes the company to reacquire shares of its stock through open market purchases. Shares buyback plans are generally an indication that the company's management believes its shares are undervalued.

Insider Activity

In other The Sage Group news, insider Steve Hare acquired 3,076 shares of the stock in a transaction dated Thursday, July 3rd. The shares were bought at an average price of GBX 1,206 per share, with a total value of £37,096.56. 1.08% of the stock is owned by corporate insiders.

About The Sage Group

The Sage Group plc, together with its subsidiaries, provides technology solutions and services for small and medium businesses in the United States, the United Kingdom, France, and internationally. It offers cloud native solutions, such as Sage Intacct, a cloud accounting software product and financial management software; Sage People, a HR and people management solution; Sage 200, a finance and business management solution; Sage X3, a business management solution; Sage Accounting, a solution for small businesses, accountants, and bookkeepers to manage customer data, accounts, and people; Sage Payroll for small businesses manage their payroll; and Sage HR for small and mid-sized businesses for record management, leave management, staff scheduling, and expenses services.