Schroders (LON:SDR) Stock Price Up 28.6% – Time to Buy?

Schroders plc (LON:SDR) shares were up 28.6% on Thursday . The company traded as high as GBX 599.50 and last traded at GBX 587.50. Approximately 1,147,357,875 shares were traded during trading, an increase of 1,855% from the average daily volume of 58,690,957 shares. The stock had previously closed at GBX 457.

Key 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

Analyst Upgrades and Downgrades

SDR has been the topic of a number of analyst reports. Citigroup lowered their target price on Schroders from GBX 435 to GBX 430 and set a “buy” rating on the stock in a report on Friday, October 24th. JPMorgan Chase & Co. restated an “overweight” rating on shares of Schroders in a research report on Friday, January 9th. Royal Bank Of Canada increased their price objective on Schroders from GBX 435 to GBX 440 and gave the company a “buy” rating in a research note on Thursday, October 30th. Jefferies Financial Group reissued a “hold” rating and issued a GBX 420 target price on shares of Schroders in a research note on Friday, January 9th. Finally, UBS Group reaffirmed a “buy” rating and set a GBX 455 price target on shares of Schroders in a research note on Friday, October 17th. Four analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, Schroders presently has an average rating of “Moderate Buy” and a consensus target price of GBX 413.86.

Schroders Stock Down 0.1%

The firm 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. 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 firm has a fifty day moving average price of GBX 432.17 and a 200-day moving average price of GBX 401.11.

Schroders (LON:SDR) last posted 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%. As a group, sell-side analysts forecast that Schroders plc will post 33.7347131 EPS for the current 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.