Whitbread (LON:WTB) Stock Price Passes Above 200-Day Moving Average - Here's Why

Key Points

• Whitbread plc's shares have surpassed their 200-day moving average of GBX 2,758.46, trading recently at GBX 3,050 ($41.02).
• Multiple research firms have reduced target prices on Whitbread while maintaining "buy" ratings, with a consensus price target now at GBX 2,280 ($30.67).
• The company has initiated a share repurchase program, indicating management's belief that the stock is undervalued.

Whitbread plc (LON:WTB - Get Free Report)'s stock price passed above its 200-day moving average during trading on Friday . The stock has a 200-day moving average of GBX 2,758.46 ($37.05) and traded as high as GBX 3,053.40 ($41.01). Whitbread shares last traded at GBX 3,050 ($40.97), with a volume of 440,432 shares traded.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on the company. Berenberg Bank decreased their price target on Whitbread from GBX 3,900 ($52.38) to GBX 3,500 ($47.01) and set a "buy" rating for the company in a research note on Wednesday, July 9th. Shore Capital reissued a "buy" rating on shares of Whitbread in a research note on Thursday, May 1st. Finally, Citigroup decreased their price target on Whitbread from GBX 3,700 ($49.70) to GBX 3,300 ($44.33) and set a "buy" rating for the company in a research note on Tuesday, April 15th. Two equities research analysts have rated the stock with a hold rating and four have given a buy rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of GBX 2,280 ($30.62).

Whitbread Price Performance

The company has a 50 day moving average of GBX 2,963.05 and a two-hundred day moving average of GBX 2,758.47. The firm has a market cap of £5.46 billion, a P/E ratio of 23.65, a PEG ratio of -3.09 and a beta of 1.11. The company has a quick ratio of 1.74, a current ratio of 0.96 and a debt-to-equity ratio of 33.18.

Whitbread declared that its Board of Directors has authorized a stock buyback plan on Thursday, May 1st that permits the company to buyback 0 shares. This buyback authorization permits the company to reacquire shares of its stock through open market purchases. Shares buyback plans are typically a sign that the company's leadership believes its stock is undervalued.

Insider Activity at Whitbread

In other news, insider Kal Atwal bought 269 shares of the firm's stock in a transaction that occurred on Wednesday, May 14th. The stock was acquired at an average price of GBX 2,843 ($38.19) per share, with a total value of £7,647.67 ($10,272.22). Also, insider Dominic Paul sold 3,206 shares of the firm's stock in a transaction dated Friday, May 23rd. The shares were sold at an average price of GBX 2,790 ($37.47), for a total value of £89,447.40 ($120,144.26). Company insiders own 1.03% of the company's stock.

About Whitbread

Whitbread is the owner of Premier Inn, the UK's biggest hotel brand, with 86,000 rooms in over 850 hotels and a growing presence in Germany with 10,500 rooms in 59 hotels, offering quality accommodation at affordable prices in great locations. People are at the heart of our business. We employ over 38,000 team members in over 900 Premier Inn hotels across the UK and Germany.