Schroders (LON:SDR) Shares Up 28.3% – Time to Buy?

Schroders plc (LON:SDR)’s share price traded up 28.3% during mid-day trading on Thursday . The stock traded as high as GBX 599.50 and last traded at GBX 586.50. 227,505,766 shares traded hands during trading, an increase of 712% from the average session volume of 28,029,219 shares. The stock had previously closed at GBX 457.

More Schroders News

Here are the key news stories impacting Schroders this week:

• Positive Sentiment: Nuveen/TIAA agreed to buy Schroders for about $14bn, delivering a takeover premium that materially revalues the company and underpins the recent rally. MarketWatch: Nuveen to buy Schroders
• Positive Sentiment: Schroders reported a strong set of results (profits up ~21%) at the time the takeover was announced, which supports the rationale and valuation for an acquirer. That earnings strength makes the deal look more attractive and credible. Investors Chronicle: Profits surge
• Neutral Sentiment: Analysts and the market are repositioning: Reuters flags the Schroders sale as a catalyst that puts other European asset managers in play, which may spur sector M&A speculation and re-rating across peers. Reuters: Sale puts peers in play
• Neutral Sentiment: Company quarterly results: Schroders reported GBX 36.60 EPS and solid margins/ROE — supportive fundamentals but now secondary to the takeover dynamics. Press release: Quarterly results
• Neutral Sentiment: Small insider purchases (Meagen Burnett, Richard Oldfield) have been reported — modestly bullish as a signal of insider confidence but too small to move fundamentals. InsiderTrades: Insider buying
• Negative Sentiment: Some investors may react negatively to the end of Schroders’ long-standing independence and family involvement (family reportedly sells out), creating uncertainty around culture, client retention and integration risks under new ownership. MSN: Family sells out / FTSE coverage

Analysts Set New Price Targets

A number of brokerages recently weighed in on SDR. Jefferies Financial Group reiterated a “hold” rating and issued a GBX 420 price target on shares of Schroders in a research report on Friday, January 9th. JPMorgan Chase & Co. reaffirmed an “overweight” rating on shares of Schroders in a research note on Friday, January 9th. UBS Group reissued a “buy” rating and set a GBX 455 price target on shares of Schroders in a research report on Friday, October 17th. Citigroup decreased their price target on shares of Schroders from GBX 435 to GBX 430 and set a “buy” rating for the company in a report on Friday, October 24th. Finally, Royal Bank Of Canada raised their price objective on Schroders from GBX 435 to GBX 440 and gave the stock a “buy” rating in a research note on Thursday, October 30th. Four equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of GBX 413.86.

Schroders Price Performance

The company’s fifty day moving average price is GBX 432.17 and its two-hundred day moving average price is GBX 401.11. The company has a quick ratio of 4.32, a current ratio of 4.90 and a debt-to-equity ratio of 12.95. The company has a market cap of £9.10 billion, a price-to-earnings ratio of 26.33, a PEG ratio of 1.28 and a beta of 1.17.

Schroders (LON:SDR) last issued its quarterly earnings data on Thursday, February 12th. The company reported GBX 36.60 EPS for the quarter. Schroders had a net margin of 12.81% and a return on equity of 8.65%. On average, equities research analysts forecast that Schroders plc will post 33.7347131 EPS for the current fiscal year.

About Schroders

Schroders plc is a publicly owned investment manager. The firm also provides advisory and consultancy services. It provides its services to financial institutions, high net worth clients, large corporate, local authority, charitable entities, individuals, pension plans, government funds, insurance companies, and endowments. The firm launches and manages equity mutual funds and manages fixed income mutual funds for its clients. It also manages hedge for its clients. The firm invests in the public equity, fixed income, and alternative investment markets across the globe.