Zegona Communications (LON:ZEG) Sets New 1-Year High – Here’s Why

Zegona Communications plc (LON:ZEG) shares reached a new 52-week high during mid-day trading on Tuesday . The stock traded as high as GBX 1,720 and last traded at GBX 1,701.20, with a volume of 951765 shares trading hands. The stock had previously closed at GBX 1,630.

Analysts Set New Price Targets

ZEG has been the topic of a number of research analyst reports. Canaccord Genuity Group increased their price objective on shares of Zegona Communications from GBX 1,500 to GBX 2,150 and gave the company a “buy” rating in a research report on Monday, January 12th. Berenberg Bank reaffirmed a “buy” rating and issued a GBX 1,350 price objective on shares of Zegona Communications in a report on Tuesday, November 25th. Three research analysts have rated the stock with a Buy rating, According to MarketBeat.com, the company presently has an average rating of “Buy” and a consensus price target of GBX 1,683.33.

Zegona Communications Trading Up 2.5%

The firm’s 50 day simple moving average is GBX 1,461.93 and its 200 day simple moving average is GBX 1,281.27. The firm has a market cap of £3.89 billion, a PE ratio of 151.82 and a beta of 2.80.

Zegona Communications announced that its board has authorized a stock buyback plan on Friday, December 12th that authorizes the company to buyback 0 outstanding shares. This buyback authorization authorizes the company to reacquire shares of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s board believes its stock is undervalued.

About Zegona Communications

Zegona is a British company investing strategically across the Europe with the objective of acquiring businesses in the European TMT sector, using a “Buy-Fix-Sell” strategy to deliver attractive shareholder returns.

The first acquisition made by Zegona was of Asturian telecommunications operator Telecable in 2015. Telecable was later sold to Euskaltel in 2017, at which point Zegona acquired a 15% ownership of Euskaltel.

Zegona has subsequently increased its disclosable interest in Euskaltel to over 20%, becoming the largest shareholder in the company.