Glencore (LON:GLEN) Share Price Breaks Above 200-Day Moving Average – Here’s Why

Shares of Glencore plc (LON:GLEN) crossed above its 200-day moving average during trading on Thursday. The stock has a 200-day moving average of GBX 557.58 and traded as high as GBX 564.30. Glencore shares last traded at GBX 549, with a volume of 34,887,434 shares.

Glencore News Summary

Here are the key news stories impacting Glencore this week:

• Positive Sentiment: Strategic-minerals partnership: Glencore is joining a U.S.-backed critical-minerals reserve initiative and plans to work with the U.S. EXIM Bank on a strategic-minerals reserve fund. The arrangements could strengthen Glencore’s position in supply chains viewed as strategically important by governments and potentially improve access to financing. Glencore joins US-backed critical minerals reserve initiative Glencore to partner with U.S. EXIM Bank to build strategic minerals reserve fund
• Positive Sentiment: Australian listing planned: Glencore expects its shares to begin trading on the Australian Securities Exchange on October 14. The secondary listing may broaden the shareholder base, improve access to Australian capital and increase visibility in a key mining market. Glencore to list on the Australian bourse on October 14
• Positive Sentiment: Technical support: Glencore’s shares moved above their 200-day moving average, a technical signal that can attract momentum-focused investors and reinforce the recent upward trend. Glencore shares cross above 200 day moving average
• Neutral Sentiment: Power-supply agreement: Glencore and ERG signed an agreement covering more than 800 GWh of electricity supply in Poland. The deal supports operational power needs, although the article provides limited information on its financial impact. ERG and Glencore sign electricity supply agreement
• Negative Sentiment: Queensland policy risk: The Queensland government is considering “use it or lose it” mining laws following Glencore’s sale of the Aurukun project. Such rules could increase development obligations or regulatory uncertainty for mining assets, although the direct financial effect on Glencore remains unclear. Queensland considers use it or lose it mining laws

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on the company. JPMorgan Chase & Co. lowered their price objective on Glencore from GBX 520 to GBX 510 and set a “neutral” rating on the stock in a research note on Thursday, July 30th. Berenberg Bank cut their target price on shares of Glencore from GBX 750 to GBX 740 and set a “buy” rating for the company in a research report on Friday, August 7th. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and issued a GBX 630 target price on shares of Glencore in a research note on Thursday, August 6th. Citigroup boosted their price target on shares of Glencore from GBX 770 to GBX 780 and gave the company a “buy” rating in a research report on Wednesday, August 12th. Finally, Royal Bank Of Canada restated an “outperform” rating and set a GBX 600 price target on shares of Glencore in a research note on Monday, July 27th. Five equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. According to MarketBeat.com, Glencore currently has an average rating of “Moderate Buy” and an average target price of GBX 660.

Glencore Price Performance

The business has a fifty day moving average of GBX 568.69 and a 200-day moving average of GBX 557.59. The firm has a market cap of £65.48 billion, a PE ratio of 12.40, a PEG ratio of 0.43 and a beta of 0.51. The company has a current ratio of 1.06, a quick ratio of 0.32 and a debt-to-equity ratio of 108.47.

About Glencore

Glencore is one of the world’s largest global diversified natural resource companies and a major producer and marketer of more than 60 commodities that advance everyday life. Through a network of assets, customers and suppliers that spans the globe, we produce, process, recycle, source, market and distribute the commodities that support decarbonisation while meeting the energy needs of today.
With over 150,000 employees and contractors and a strong footprint in over 35 countries in both established and emerging regions for natural resources, our marketing and industrial activities are supported by a global network of more than 50 offices.