The Sage Group (LON:SGE) Stock Crosses Below Two Hundred Day Moving Average - Should You Sell?

Key Points

• The Sage Group's stock has dipped below its two hundred day moving average (200‑day MA GBX 998.09), trading as low as GBX 816 and last at GBX 841 on roughly 9.53 million shares.
• Analysts maintain a consensus Moderate Buy (4 Buys, 3 Holds) with an average price target of GBX 1,189.17, though several firms have recently trimmed targets into the ~GBX 1,100–1,150 range.
• Insiders made recent purchases (Derek Harding 10,000 shares at GBX 864; John Bates 35,000 at GBX 811), yet the company shows high leverage (debt‑to‑equity 219.31) and weak liquidity (current ratio 0.60), which are potential concerns for investors.

The Sage Group plc (LON:SGE - Get Free Report) passed below its two hundred day moving average during trading on Monday . The stock has a two hundred day moving average of GBX 998.09 and traded as low as GBX 816. The Sage Group shares last traded at GBX 841, with a volume of 9,525,235 shares traded.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on the stock. Citigroup decreased their target price on shares of The Sage Group from GBX 1,400 to GBX 1,150 and set a "buy" rating for the company in a research note on Tuesday, March 10th. Jefferies Financial Group dropped their price target on shares of The Sage Group from GBX 1,350 to GBX 1,100 and set a "buy" rating on the stock in a research report on Tuesday, March 24th. Canaccord Genuity Group raised shares of The Sage Group to a "buy" rating and lifted their price objective for the company from GBX 1,100 to GBX 1,135 in a report on Monday, February 2nd. Shore Capital Group reiterated a "hold" rating on shares of The Sage Group in a research report on Tuesday, January 27th. Finally, Deutsche Bank Aktiengesellschaft lowered their target price on shares of The Sage Group from GBX 1,200 to GBX 1,150 and set a "hold" rating on the stock in a research note on Wednesday, January 28th. Four investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of GBX 1,189.17.

The Sage Group Trading Up 0.2%

The company has a debt-to-equity ratio of 219.31, a quick ratio of 0.58 and a current ratio of 0.60. The firm has a market capitalization of £7.78 billion, a price-to-earnings ratio of 22.68, a P/E/G ratio of 1.22 and a beta of 0.30. The company has a 50 day moving average price of GBX 831.54 and a two-hundred day moving average price of GBX 998.09.

Insider Buying and Selling

In related news, insider Derek Harding acquired 10,000 shares of The Sage Group stock in a transaction on Monday, February 9th. The stock was bought at an average cost of GBX 864 per share, for a total transaction of £86,400. Also, insider John Bates acquired 35,000 shares of the firm's stock in a transaction on Thursday, February 12th. The shares were bought at an average cost of GBX 811 per share, for a total transaction of £283,850. In the last quarter, insiders purchased 55,000 shares of company stock valued at $45,415,000. 1.00% of the stock is owned by corporate insiders.

The Sage Group Company Profile

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.

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