Chemring Group Shares Surpass 200-Day Moving Average – What’s Next?

Chemring Group PLC (LON:CHG – Get Free Report) achieved a notable milestone as its shares traded above the 200-day moving average during Wednesday’s session. The stock recorded a 200-day moving average of GBX 357.05 ($4.63) and reached a daily high of GBX 394.50 ($5.12). As of the latest trading update, Chemring Group shares were priced at GBX 380 ($4.93), with an impressive trading volume of 2,831,682 shares.

Analysts Set New Price Targets

Recently, Chemring Group has attracted attention from several analysts who have shared their assessments. Shore Capital has reaffirmed its “buy” rating for Chemring Group in a research note released on February 25th. Jefferies Financial Group has also maintained a “buy” rating, setting a price target of GBX 470 ($6.10) as noted in their report dated December 17th. While one analyst has issued a sell rating, four have provided buy ratings, leading to an average rating of “Moderate Buy” with a consensus price target of GBX 429.50 ($5.57) according to MarketBeat.

Chemring Group Stock Trends

Despite the recent positive movements, Chemring Group's stock has experienced a decline of 3.3%. The firm holds a market capitalization of £1.02 billion, reflecting a PE ratio of 465.26 and a price-to-earnings-growth ratio of 1.99, with a beta value of 0.68. Additionally, the company’s 50-day moving average stands at GBX 343.62, complementing the 200-day moving average of GBX 357.05. Its financial health shows a debt-to-equity ratio of 27.42, a quick ratio of 0.71, and a current ratio of 1.22.

Chemring Group reported its quarterly earnings on December 17th, revealing an earnings per share (EPS) of GBX 15.70 ($0.20). The company maintains a net margin of 0.64% and a return on equity estimated at 0.88%. Analysts anticipate that Chemring Group PLC will record an EPS of approximately 24.88 for the current fiscal year.

Chemring Group Increases Dividend

In a recent announcement, Chemring Group revealed an upcoming dividend payment scheduled for April 11th. Shareholders registered by March 20th will receive a dividend of GBX 5.20 ($0.07) per share, which translates to a yield of 1.44%. This new dividend is an increase from the prior payout of GBX 2.60. The company’s dividend payout ratio stands at 857.06%, indicating a commitment to returning value to its shareholders.

Insider Trading Activity

Recent insider activity includes a sale by Sarah Ellard, who disposed of 27,445 shares on March 5th at an average price of GBX 415 ($5.38), culminating in a total transaction worth £113,896.75 ($147,706.85). Conversely, insider James Mortensen bought 9,125 shares on December 17th at an average cost of GBX 329 ($4.27), aggregating to £30,021.25 ($38,933.02). Presently, company insiders hold 1.69% of the shares.

About Chemring Group

Chemring Group is a specialist manufacturing and technology firm focused on delivering innovative solutions to complex customer needs. Utilizing extensive expertise in science and engineering, the company emphasizes innovation at every stage, from research and development to design, manufacturing, and in-service support. The customer base includes national defense organizations, security agencies, and commercial markets, which require critical solutions in uncertain environments.

Chemring, Stocks, Dividends