Chemring Group (LON:CHG) Stock Price Up 14.8% – Still a Buy?

Shares of Chemring Group PLC (LON:CHG) were up 14.8% during trading on Monday . The company traded as high as GBX 416.46 ($5.28) and last traded at GBX 411 ($5.21). Approximately 9,506,106 shares traded hands during mid-day trading, an increase of 321% from the average daily volume of 2,258,005 shares. The stock had previously closed at GBX 358 ($4.54).

Analysts Set New Price Targets

A number of brokerages have recently commented on CHG. Jefferies Financial Group reissued a “buy” rating and issued a GBX 470 ($5.96) price target on shares of Chemring Group in a report on Tuesday, December 17th. Shore Capital reiterated a “buy” rating on shares of Chemring Group in a research report on Tuesday. One equities research analyst has rated the stock with a sell rating and four have assigned a buy rating to the company. According to MarketBeat, Chemring Group has a consensus rating of “Moderate Buy” and an average target price of GBX 429.50 ($5.44).

Chemring Group Price Performance

The firm has a market capitalization of £1.05 billion, a P/E ratio of 477.51, a PEG ratio of 1.99 and a beta of 0.68. The business’s 50-day simple moving average is GBX 328.17 and its 200 day simple moving average is GBX 357.80. The company has a quick ratio of 0.71, a current ratio of 1.22 and a debt-to-equity ratio of 27.42.

Chemring Group (LON:CHG) last released its earnings results on Tuesday, December 17th. The company reported GBX 15.70 ($0.20) EPS for the quarter. Chemring Group had a net margin of 0.64% and a return on equity of 0.88%. Sell-side analysts forecast that Chemring Group PLC will post 24.8815166 earnings per share for the current year.

Chemring Group Increases Dividend

The business also recently disclosed a dividend, which will be paid on Friday, April 11th. Stockholders of record on Thursday, March 20th will be issued a GBX 5.20 ($0.07) dividend. The ex-dividend date of this dividend is Thursday, March 20th. This represents a dividend yield of 1.44%. This is an increase from Chemring Group’s previous dividend of $2.60. Chemring Group’s payout ratio is currently 857.06%.

Insider Activity at Chemring Group

In other news, insider James Mortensen purchased 9,125 shares of the stock in a transaction that occurred on Tuesday, December 17th. The stock was bought at an average cost of GBX 329 ($4.17) per share, for a total transaction of £30,021.25 ($38,049.75). 1.69% of the stock is currently owned by company insiders.

Chemring Group Company Profile

We are a specialist manufacturing and technology business creating market-leading innovative solutions to meet our customers’ complex needs.

Using our extensive science and engineering expertise, we turn ideas into reality, designing and developing critical solutions that protect and safeguard in unpredictable environments in today’s increasingly unstable world.

We achieve this by innovating at every stage of the value chain, from research and development (“R&D”) through to design, manufacture and in-service support, working closely with our customers to deliver products, services and solutions for mission-critical success.

Our customer base spans national defence organisations, security and law enforcement agencies, as well as commercial markets such as space and transport.