Capita plc (LON:CPI) Given Average Recommendation of “Moderate Buy” by Analysts

Capita plc (LON:CPI) has been given a consensus rating of “Moderate Buy” by the six analysts that are currently covering the stock, Marketbeat.com reports. Two investment analysts have rated the stock with a hold recommendation and four have issued a buy recommendation on the company. The average 1-year price target among brokerages that have covered the stock in the last year is GBX 464.20.

A number of research analysts have issued reports on the stock. Deutsche Bank Aktiengesellschaft boosted their price objective on shares of Capita from GBX 300 to GBX 320 and gave the company a “hold” rating in a research report on Friday. Shore Capital Group reissued a “buy” rating on shares of Capita in a research note on Thursday. Royal Bank Of Canada reaffirmed an “outperform” rating and set a GBX 450 price objective on shares of Capita in a research report on Friday. Canaccord Genuity Group reiterated a “buy” rating and set a GBX 900 target price on shares of Capita in a report on Friday. Finally, Berenberg Bank decreased their target price on Capita to GBX 330 and set a “hold” rating for the company in a research report on Wednesday, March 11th.

Insiders Place Their Bets

In other Capita news, insider Adolfo Hernandez bought 34,540 shares of the company’s stock in a transaction dated Friday, March 13th. The shares were purchased at an average price of GBX 279 per share, for a total transaction of £96,366.60. Also, insider Pablo Andres bought 12,178 shares of Capita stock in a transaction dated Wednesday, March 11th. The stock was acquired at an average cost of GBX 280 per share, for a total transaction of £34,098.40. In the last quarter, insiders acquired 58,718 shares of company stock valued at $16,346,500. 13.40% of the stock is owned by corporate insiders.

Capita Trading Down 2.4%

CPI opened at GBX 270 on Friday. Capita has a one year low of GBX 168 and a one year high of GBX 415.50. 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 business has a 50 day simple moving average of GBX 340.75 and a two-hundred day simple moving average of GBX 337.15. The firm has a market capitalization of £307.12 million, a price-to-earnings ratio of 19.91, a PEG ratio of 0.18 and a beta of 0.66.

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

Key Capita News

Here are the key news stories impacting Capita this week:

• Positive Sentiment: Sale of private‑sector contact centres — Capita agreed to sell its private‑sector contact‑centre business to an investment firm, a strategic move to refocus on public services and pensions; the deal was reported to have driven an intraday jump in the shares as investors view it as simplification and a step toward improving margins and cash flow. Capita shares jump on sale of call centre business Capita sells private-sector contact centres (TipRanks)
• Positive Sentiment: Broker support — several brokers reaffirmed or upgraded ratings with higher targets: RBC reaffirmed an “outperform” and set a GBX 450 target, Canaccord kept a “buy” and a GBX 900 target, and Shore Capital reaffirmed “buy” — these notes provide buy‑side endorsements that can underpin demand. Broker ratings (LSE)
• Neutral Sentiment: Deutsche Bank raised its price target from GBX 300 to GBX 320 but kept a “hold” rating — a modest upgrade in valuation but not a conviction buy signal. Deutsche Bank rating update (LSE)
• Negative Sentiment: Weak liquidity and high leverage — Capita reports a low current ratio (~0.54), quick ratio (~0.53) and an extremely high debt‑to‑equity ratio (~964), leaving the company sensitive to cash flow swings and refinancing risk.
• Negative Sentiment: Poor profitability metrics — recent filings show a negative net margin and a negative return on equity; despite a trailing P/E around 20, underlying margins remain a concern for durable earnings improvement.
• Negative Sentiment: Technical/valuation context — the share price sits well below its 50‑ and 200‑day moving averages (GBX ~341 and ~337 respectively), and analyst targets vary widely (GBX 320–900), highlighting investor uncertainty and potential volatility.

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.