Zotefoams (LON:ZTF) Stock Price Passes Below 200 Day Moving Average - Should You Sell?

Key Points

• Shares of Zotefoams fell below its 200-day moving average, trading as low as GBX 377.50 and last at GBX 388 versus the 200-day MA of GBX 401.40 on a volume of 174,336 shares.
• Analysts are broadly bullish — three research houses rate the stock a Buy with an average price target of GBX 605, including recent upgrades from Berenberg (to GBX 590) and Canaccord (to GBX 675).
• Valuation and results show a market cap of £189.8m, a P/E of 8.65, PEG of 0.66 and quarterly EPS of GBX 38, though liquidity is tight (quick ratio 0.67) and debt/equity is 43.83%.

Shares of Zotefoams plc (LON:ZTF - Get Free Report) passed below its 200-day moving average during trading on Friday . The stock has a 200-day moving average of GBX 401.40 and traded as low as GBX 377.50. Zotefoams shares last traded at GBX 388, with a volume of 174,336 shares trading hands.

Wall Street Analyst Weigh In

Several analysts have recently commented on ZTF shares. Berenberg Bank upped their price objective on shares of Zotefoams from GBX 540 to GBX 590 and gave the company a "buy" rating in a report on Tuesday, January 27th. Canaccord Genuity Group upped their price objective on shares of Zotefoams from GBX 640 to GBX 675 and gave the company a "buy" rating in a report on Wednesday, March 18th. Three research analysts have rated the stock with a Buy rating, According to MarketBeat.com, the company presently has an average rating of "Buy" and an average price target of GBX 605.

Zotefoams Price Performance

The stock's 50-day simple moving average is GBX 395.96 and its two-hundred day simple moving average is GBX 401.40. The company has a market capitalization of £189.83 million, a price-to-earnings ratio of 8.65, a PEG ratio of 0.66 and a beta of 1.20. The company has a quick ratio of 0.67, a current ratio of 1.02 and a debt-to-equity ratio of 43.83.

Zotefoams (LON:ZTF - Get Free Report) last issued its earnings results on Tuesday, March 17th. The company reported GBX 38 earnings per share for the quarter. Zotefoams had a net margin of 14.28% and a return on equity of 18.25%.

About Zotefoams

Zotefoams plc, together with its subsidiaries, manufactures, distributes, and sells polyolefin block foams in the United Kingdom, rest of Europe, North America, and internationally. The company operates through Polyolefin Foams, High-Performance Products, and MuCell Extrusion LLC segments. It offers AZOTE, a polyolefin foam under the Plastazote, Evazote, and Supazote, AZOTE Adapt brands; and various high-performance foams manufactured from fluoropolymers, engineering polymers, and specialty elastomers under the ZOTEK brand; and Ecozote foam for plastic products that offers circularity and reduce reliance on fossil fuel-derived raw materials.

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