Capita (LON:CPI) Shares Climb 9% – Time to Buy?

Capita plc (LON:CPI)’s stock price shot up 9% during trading on Friday. The company traded as high as GBX 237.58 and last traded at GBX 235. Approximately 1,943,474 shares were traded during mid-day trading, an increase of 42% from the average daily volume of 1,373,440 shares. The stock had previously closed at GBX 215.50.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on CPI. Berenberg Bank cut their price target on Capita from GBX 330 to GBX 270 and set a “hold” rating on the stock in a report on Wednesday, August 5th. Peel Hunt restated a “buy” rating and set a GBX 311 price objective on shares of Capita in a research note on Friday, October 2nd. Canaccord Genuity Group reiterated a “buy” rating and issued a GBX 750 target price on shares of Capita in a research note on Wednesday, August 5th. Finally, Deutsche Bank Aktiengesellschaft reiterated a “hold” rating and issued a GBX 260 target price on shares of Capita in a report on Wednesday, August 5th. Four equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of GBX 408.20.

Capita Price Performance

The firm has a market cap of £281.33 million, a PE ratio of -1.35, a price-to-earnings-growth ratio of 0.18 and a beta of 0.88. The company has a quick ratio of 0.53, a current ratio of 0.53 and a debt-to-equity ratio of 6,255.83. The stock has a 50 day moving average price of GBX 251.18 and a two-hundred day moving average price of GBX 282.69.

Capita (LON:CPI) last released its earnings results on Tuesday, August 4th. The company reported GBX 13.38 EPS for the quarter. Capita had a negative return on equity of 677.10% and a negative net margin of 10.32%.

Capita Company Profile

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.