Zegona Communications (LON:ZEG) Reaches New 12-Month High – What’s Next?

Zegona Communications plc (LON:ZEG) shares reached a new 52-week high during mid-day trading on Monday . The company traded as high as GBX 1,600 and last traded at GBX 1,600, with a volume of 830706 shares trading hands. The stock had previously closed at GBX 1,540.

Wall Street Analyst Weigh In

ZEG has been the topic of a number of research analyst reports. Canaccord Genuity Group increased their price target on Zegona Communications from GBX 1,500 to GBX 2,150 and gave the company a “buy” rating in a research note on Monday, January 12th. Berenberg Bank reiterated a “buy” rating and set a GBX 1,350 target price on shares of Zegona Communications in a research note on Tuesday, November 25th. Three research analysts have rated the stock with a Buy rating, Based on data from MarketBeat, Zegona Communications currently has a consensus rating of “Buy” and a consensus price target of GBX 1,683.33.

Zegona Communications Stock Performance

The company has a market capitalization of £12.13 billion, a price-to-earnings ratio of 145.45 and a beta of 2.80. The firm has a fifty day moving average price of GBX 1,358.84 and a 200-day moving average price of GBX 1,185.81.

Zegona Communications declared that its Board of Directors has approved a stock repurchase plan on Friday, December 12th that permits the company to repurchase 0 shares. This repurchase authorization permits the company to purchase shares of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s management believes its shares are undervalued.

About Zegona Communications

Zegona is a British company investing strategically across the Europe with the objective of acquiring businesses in the European TMT sector, using a “Buy-Fix-Sell” strategy to deliver attractive shareholder returns.

The first acquisition made by Zegona was of Asturian telecommunications operator Telecable in 2015. Telecable was later sold to Euskaltel in 2017, at which point Zegona acquired a 15% ownership of Euskaltel.

Zegona has subsequently increased its disclosable interest in Euskaltel to over 20%, becoming the largest shareholder in the company.