THG (LON:THG) Shares Down 6.3% - Here's Why

Key Points

• THG shares fell 6.3% intraday to GBX 34.96 (low GBX 34.34) on Monday with volume of 4.94M, 56% below its average; the company has a market cap of £544.6M, a P/E of 8.74 and high leverage (debt/equity 131.97) while analysts forecast a negative EPS for the year.
• Analysts maintain a consensus "Moderate Buy" rating with a consensus target of GBX 57.50 (Jefferies target GBX 60, JPMorgan neutral), implying notable upside from the current price.
• Insider Matthew Moulding purchased 24,395,170 shares at GBX 35 (£8.54M) on Feb 20, and insiders now own 22.9% of the company.

THG Plc (LON:THG - Get Free Report)'s stock price traded down 6.3% during mid-day trading on Monday . The stock traded as low as GBX 34.34 and last traded at GBX 34.96. 4,942,838 shares traded hands during trading, a decline of 56% from the average session volume of 11,142,743 shares. The stock had previously closed at GBX 37.30.

Analyst Ratings Changes

Several research analysts have recently issued reports on the company. Jefferies Financial Group reaffirmed a "buy" rating and set a GBX 60 price target on shares of THG in a research note on Tuesday, April 21st. JPMorgan Chase & Co. reissued a "neutral" rating on shares of THG in a research note on Monday, January 19th. One investment analyst has rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, THG presently has a consensus rating of "Moderate Buy" and a consensus target price of GBX 57.50.

THG Stock Down 6.3%

The firm's 50 day moving average is GBX 32.90 and its two-hundred day moving average is GBX 39.64. The stock has a market cap of £544.58 million, a price-to-earnings ratio of 8.74, a P/E/G ratio of -0.08 and a beta of 2.46. The company has a current ratio of 0.92, a quick ratio of 0.89 and a debt-to-equity ratio of 131.97.

THG (LON:THG - Get Free Report) last announced its earnings results on Thursday, March 26th. The company reported GBX (0.04) earnings per share for the quarter. THG had a net margin of 3.15% and a return on equity of 12.75%. On average, sell-side analysts predict that THG Plc will post -6.7170435 EPS for the current year.

Insiders Place Their Bets

In other news, insider Matthew Moulding bought 24,395,170 shares of the business's stock in a transaction that occurred on Friday, February 20th. The stock was purchased at an average price of GBX 35 per share, with a total value of £8,538,309.50. Insiders own 22.90% of the company's stock.

About THG

THG (www.thg.com) is a global innovator revolutionising how brands connect to a worldwide consumer base. We are transforming how consumer brands go to market in the digital age. We have built a portfolio of leading digital beauty, health, wellness, and sports nutrition brands that are capitalising on the global growth opportunities, supported by the accelerating consumer shift to the e-commerce channel. THG is home to three key divisions: Beauty, Nutrition, and Ingenuity. All brands, whether in-house or third parties are powered by our complete commerce division Ingenuity, which is a flexible and scalable offering formed of a combination of complex e-commerce technologies, physical assets, infrastructure, and brand building capabilities. THG Beauty is home to leading online pure-play retailers for prestige beauty products and brings together global online multi-brand retail subscription boxes, owned prestige brands along with production and innovation.

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