Schroders (LON:SDR) Trading Up 28.7% – Time to Buy?

Schroders plc (LON:SDR) shares traded up 28.7% during trading on Thursday . The stock traded as high as GBX 599.50 and last traded at GBX 588.10. 226,076,875 shares were traded during mid-day trading, an increase of 708% from the average session volume of 27,981,590 shares. The stock had previously closed at GBX 457.

Schroders News Summary

Here are the key news stories impacting Schroders this week:

• Positive Sentiment: Report that Schroders has agreed a roughly $13.5bn sale to Nuveen, with the Schroder family selling its stake — a deal announcement typically carries a takeover premium that explains the sharp upward move in the stock. Article Title
• Positive Sentiment: Schroders released quarterly results showing GBX 36.60 EPS for the quarter with net margin ~12.8% and ROE ~8.65% — earnings publication supports fundamentals and makes a takeover valuation easier to justify. Press Release
• Positive Sentiment: Insider buys: small purchases by Meagen Burnett and Richard Oldfield at ~GBX 467 signal management/insider confidence ahead of and around the announcement window. Insider Trades
• Neutral Sentiment: Analyst activity is mixed but constructive: several Buy/Overweight re-affirmations and target changes (RBC, UBS, JPMorgan), though some targets were trimmed earlier — consensus is a Moderate Buy, which supports momentum but leaves room for valuation debate. Analyst Notes
• Neutral Sentiment: Market coverage (WSJ, Investors Chronicle) has flagged Schroders in overseas/M&A commentary, increasing investor attention and trading volume. WSJ Coverage Investors Chronicle
• Negative Sentiment: Deal risks: acquisition subject to shareholder/regulatory approvals, integration risk and possible competing bids — any setbacks could reverse gains. (Watch formal filings, timetable and regulator commentary.)

Wall Street Analyst Weigh In

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

Schroders Trading Up 28.8%

The company has a debt-to-equity ratio of 12.95, a quick ratio of 4.32 and a current ratio of 4.90. The company’s 50 day moving average is GBX 424.25 and its 200 day moving average is GBX 398.47. The stock has a market capitalization of £9.13 billion, a price-to-earnings ratio of 26.40, a PEG ratio of 1.28 and a beta of 1.17.

Schroders (LON:SDR) last posted its quarterly earnings data on Thursday, February 12th. The company reported GBX 36.60 earnings per share (EPS) for the quarter. Schroders had a net margin of 12.81% and a return on equity of 8.65%. On average, 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.