Pennon Group (LON:PNN) Hits New 12-Month High – Should You Buy?

Pennon Group Plc (LON:PNN)’s stock price hit a new 52-week high during trading on Tuesday . The stock traded as high as GBX 592.02 and last traded at GBX 592, with a volume of 182903 shares trading hands. The stock had previously closed at GBX 588.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on PNN. Citigroup cut Pennon Group to a “neutral” rating and upped their price target for the stock from GBX 539 to GBX 542 in a report on Monday, November 3rd. Deutsche Bank Aktiengesellschaft upped their target price on shares of Pennon Group from GBX 580 to GBX 600 and gave the company a “buy” rating in a research note on Monday, January 19th. Two research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of GBX 604.

Pennon Group Stock Performance

The company has a debt-to-equity ratio of 341.72, a quick ratio of 1.54 and a current ratio of 0.97. The company has a market capitalization of £2.71 billion, a PE ratio of 119.58, a PEG ratio of 8.20 and a beta of 0.29. The company has a 50 day moving average price of GBX 543.45 and a 200 day moving average price of GBX 512.

Pennon Group (LON:PNN) last posted its quarterly earnings results on Thursday, November 27th. The company reported GBX 14 earnings per share (EPS) for the quarter. Pennon Group had a negative net margin of 1.05% and a negative return on equity of 0.88%. Equities analysts forecast that Pennon Group Plc will post 1.0402417 EPS for the current year.

Insider Activity

In other news, insider David Sproul purchased 4,635 shares of the firm’s stock in a transaction that occurred on Tuesday, December 9th. The stock was acquired at an average cost of GBX 536 per share, for a total transaction of £24,843.60. Company insiders own 0.37% of the company’s stock.

About Pennon Group

At the top end of the FTSE 250, Pennon is an infrastructure group, focused on the UK water market is one of only three listed water companies in the UK. Operating in a stable regulatory environment with a positive outlook, we are focused on long-term sustainable growth, through disciplined capital allocation, organic and acquisitive. Our 25-year rolling licence provides predictable index-linked growth and visibility over future revenues.

We provide clean and wastewater services through our businesses across the Great South West.