Pennon Group (LON:PNN) Stock Falls 9.5% After Analyst Downgrade

Pennon Group Plc (LON:PNN)’s stock price dropped 9.5% during trading on Monday after Deutsche Bank Aktiengesellschaft downgraded the stock to a hold rating. Deutsche Bank Aktiengesellschaft now has a GBX 380 price target on the stock, down from their previous price target of GBX 550. Pennon Group traded as low as GBX 311.20 and last traded at GBX 323. 3,815,871 shares were traded during mid-day trading, a decline of 70% from the average session volume of 12,884,815 shares. The stock had previously closed at GBX 357.

Other analysts have also issued reports about the company. Jefferies Financial Group reissued a “hold” rating and issued a GBX 500 price target on shares of Pennon Group in a research note on Thursday. Royal Bank Of Canada reiterated an “outperform” rating and set a GBX 575 price objective on shares of Pennon Group in a research note on Tuesday, August 25th. Four investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of GBX 1,272.86.

Insider Transactions at Pennon Group

In related news, insider Laura Flowerdew sold 1,119 shares of the firm’s stock in a transaction on Monday, July 20th. The stock was sold at an average price of GBX 493, for a total transaction of £5,516.67. Insiders acquired 96 shares of company stock worth $44,883 in the last quarter. Company insiders own 0.32% of the company’s stock.

Pennon Group Price Performance

The firm has a market capitalization of £1.52 billion, a price-to-earnings ratio of 16.74, a price-to-earnings-growth ratio of 8.20 and a beta of 0.57. The company’s fifty day moving average price is GBX 453.43 and its 200 day moving average price is GBX 487.58. The company has a debt-to-equity ratio of 347.81, a quick ratio of 1.53 and a current ratio of 1.51.

Pennon Group Company Profile

At the top end of the FTSE 250, Pennon is an infrastructure group, focused on the UK water market is one of only three listed water companies in the UK. Operating in a stable regulatory environment with a positive outlook, we are focused on long-term sustainable growth, through disciplined capital allocation, organic and acquisitive. Our 25-year rolling licence provides predictable index-linked growth and visibility over future revenues.

We provide clean and wastewater services through our businesses across the Great South West.