Pennon Group (LON:PNN) Sets New 52-Week High – Should You Buy?

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

Wall Street Analysts Forecast Growth

PNN has been the subject of a number of analyst reports. Citigroup cut Pennon Group to a “neutral” rating and lifted their price objective for the company from GBX 539 to GBX 542 in a report on Monday, November 3rd. Deutsche Bank Aktiengesellschaft boosted their price objective on Pennon Group from GBX 580 to GBX 600 and gave the stock a “buy” rating in a report on Monday, January 19th. Two analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of GBX 604.

Pennon Group Price Performance

The company has a debt-to-equity ratio of 341.72, a current ratio of 0.97 and a quick ratio of 1.54. The company’s 50-day moving average price is GBX 540.74 and its 200-day moving average price is GBX 510.79. The company has a market cap of £2.79 billion, a P/E ratio of 123.33, a P/E/G ratio of 8.20 and a beta of 0.29.

Pennon Group (LON:PNN) last announced its earnings results on Thursday, November 27th. The company reported GBX 14 earnings per share for the quarter. Pennon Group had a negative net margin of 1.05% and a negative return on equity of 0.88%. As a group, sell-side analysts predict that Pennon Group Plc will post 1.0402417 earnings per share for the current fiscal year.

Insider Activity

In other news, insider David Sproul bought 4,635 shares of the company’s stock in a transaction that occurred on Tuesday, December 9th. The shares were acquired at an average price of GBX 536 per share, with a total value of £24,843.60. 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.