Capita (LON:CPI) Trading 13.8% Higher – What’s Next?

Shares of Capita plc (LON:CPI) shot up 13.8% during trading on Thursday . The company traded as high as GBX 275 and last traded at GBX 273.70. 7,342,268 shares traded hands during trading, an increase of 309% from the average session volume of 1,793,705 shares. The stock had previously closed at GBX 240.50.

Key Headlines Impacting Capita

Here are the key news stories impacting Capita this week:

• Positive Sentiment: Capita agreed to sell its private‑sector contact‑centre business as it refocuses on public services and pensions; the disposal was cited as the main near‑term catalyst lifting the shares. Capita shares jump on sale of call centre business
• Positive Sentiment: Capita sold private‑sector contact centres — company update/press coverage highlighting the strategic refocus that investors view as value‑creative. Capita Sells Private Sector Contact Centres to Refocus on Public Services and Pensions
• Positive Sentiment: Canaccord Genuity reaffirmed a “buy” rating and retains an aggressive GBX 900 price target — a very bullish signal from a broker that could support upside sentiment. London Stock Exchange
• Positive Sentiment: Royal Bank of Canada reaffirmed an “outperform” rating and set a GBX 450 price target, adding further buy‑side support. London Stock Exchange
• Positive Sentiment: Deutsche Bank raised its price target from GBX 300 to GBX 320 (rating: hold) — a modest upgrade to valuation assumptions that reduces near‑term downside. London Stock Exchange
• Positive Sentiment: Shore Capital reaffirmed its “buy” rating, another broker reiteration supporting the trade after the disposal news. Digital Look

Analyst Ratings Changes

Several research firms have recently weighed in on CPI. Canaccord Genuity Group reissued a “buy” rating and issued a GBX 900 target price on shares of Capita in a research report on Friday. Shore Capital Group restated a “buy” rating on shares of Capita in a research report on Thursday. Berenberg Bank decreased their price objective on shares of Capita to GBX 330 and set a “hold” rating for the company in a research note on Wednesday, March 11th. Deutsche Bank Aktiengesellschaft increased their target price on Capita from GBX 300 to GBX 320 and gave the company a “hold” rating in a report on Friday. Finally, Royal Bank Of Canada reissued an “outperform” rating and set a GBX 450 price target on shares of Capita in a research report on Friday. Four analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of GBX 464.20.

Capita Stock Performance

The company has a debt-to-equity ratio of 964.14, a current ratio of 0.54 and a quick ratio of 0.53. The firm has a market capitalization of £306.63 million, a price-to-earnings ratio of 19.88, a PEG ratio of 0.18 and a beta of 0.66. The firm’s fifty day moving average is GBX 338.31 and its 200 day moving average is GBX 337.32.

Capita (LON:CPI) last issued its earnings results on Tuesday, March 10th. The company reported GBX 49.71 earnings per share (EPS) for the quarter. Capita had a negative net margin of 7.45% and a negative return on equity of 142.88%.

Insider Transactions at Capita

In other news, insider Pablo Andres purchased 12,178 shares of the stock in a transaction that occurred on Wednesday, March 11th. The stock was acquired at an average price of GBX 280 per share, with a total value of £34,098.40. Also, insider Adolfo Hernandez acquired 34,540 shares of the company’s stock in a transaction that occurred on Friday, March 13th. The stock was purchased at an average price of GBX 279 per share, for a total transaction of £96,366.60. Insiders have bought a total of 58,718 shares of company stock valued at $16,346,500 over the last ninety days. Company insiders own 13.40% of the company’s stock.

About Capita

Capita is a modern outsourcer, helping clients across the public and private sectors run complex business processes more efficiently, creating better consumer experiences. Operating across 8 countries, Capita’s colleagues support primarily UK and European clients with people-based services underpinned by market-leading technology. We play an integral role in society – our work matters to the lives of the millions of people who rely on us every day.