Schroders (LON:SDR) Trading Up 28.7% – Should You Buy?

Schroders plc (LON:SDR) shares rose 28.7% on Thursday . The company traded as high as GBX 599.50 and last traded at GBX 588. Approximately 235,726,484 shares changed hands during trading, an increase of 733% from the average daily volume of 28,303,242 shares. The stock had previously closed at GBX 457.

Key Schroders News

Here are the key news stories impacting Schroders this week:

• Positive Sentiment: Schroders agreed to be sold to Nuveen for about $13.5 billion and the Schroder family is reported to be exiting — this takeover/strategic-sale report is the primary catalyst for today’s strong rally because it implies a takeover premium and immediate value crystallisation for shareholders. Read More.
• Positive Sentiment: Heavy market attention from international press and live market coverage increased buy-side focus on overseas names, amplifying volume and momentum in SDR. Significant flows and headlines can accelerate price moves on a takeover story. Read More.
• Positive Sentiment: Insider purchases by senior staff (small lots bought at ~GBX 467) were reported this week — while transaction sizes are modest, insider buying during a takeover period can be read as a signal of confidence or alignment with shareholder value. Read More.
• Neutral Sentiment: Schroders published quarterly results showing GBX 36.60 EPS, ROE ~8.65% and net margin ~12.8% — the results appear solid but the takeover news is the dominant price driver today. Review the Q4 release for underlying operating trends. Read More.
• Neutral Sentiment: Analyst coverage prior to today showed a mix of Buy/Hold ratings and a consensus price target below today’s intraday level — analysts will likely re-rate the stock once deal terms are confirmed, which could produce upgrades or target resets. Read More.
• Negative Sentiment: Deal risks remain: regulatory approvals, shareholder votes, and integration/financing conditions could delay or alter terms; any negative developments on those fronts would reverse today’s move. Read More.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on SDR. Royal Bank Of Canada upped their price objective on shares of Schroders from GBX 435 to GBX 440 and gave the company a “buy” rating in a research report on Thursday, October 30th. UBS Group reiterated a “buy” rating and issued a GBX 455 price target on shares of Schroders in a research note on Friday, October 17th. JPMorgan Chase & Co. reissued an “overweight” rating on shares of Schroders in a report on Friday, January 9th. Jefferies Financial Group restated a “hold” rating and issued a GBX 420 price target on shares of Schroders in a research note on Friday, January 9th. Finally, Citigroup cut their price objective on Schroders from GBX 435 to GBX 430 and set a “buy” rating on the stock in a research note on Friday, October 24th. Four research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of GBX 413.86.

Schroders Stock Up 28.6%

The company has a quick ratio of 4.32, a current ratio of 4.90 and a debt-to-equity ratio of 12.95. The firm’s 50-day moving average price is GBX 424.25 and its 200 day moving average price is GBX 398.47. The firm has a market cap of £9.11 billion, a P/E ratio of 26.35, a price-to-earnings-growth ratio of 1.28 and a beta of 1.17.

Schroders (LON:SDR) last issued its quarterly earnings data on Thursday, February 12th. The company reported GBX 36.60 earnings per share for the quarter. Schroders had a net margin of 12.81% and a return on equity of 8.65%. As a group, research analysts expect that Schroders plc will post 33.7347131 earnings per share for the current year.

About Schroders

Schroders plc is a publicly owned investment manager. The firm also provides advisory and consultancy services. It provides its services to financial institutions, high net worth clients, large corporate, local authority, charitable entities, individuals, pension plans, government funds, insurance companies, and endowments. The firm launches and manages equity mutual funds and manages fixed income mutual funds for its clients. It also manages hedge for its clients. The firm invests in the public equity, fixed income, and alternative investment markets across the globe.