Ocado Group (LON:OCDO) Shares Down 17.1% - Time to Sell?

Ocado Group plc (LON:OCDO - Get Free Report) experienced a significant decline in its stock price, dropping 17.1% during mid-day trading on Thursday. The shares fell to a low of GBX 268.78 ($3.38) and were last traded at GBX 276.30 ($3.48). A total of approximately 14,559,080 shares were traded on this day, representing a considerable 21% increase in trading volume compared to the average daily volume of 11,997,899 shares. Prior to this drop, the stock had closed at GBX 333.20 ($4.19).

Current Trading Overview

The company's performance has been struggling, as indicated by a 4.8% decline in trading. Currently, Ocado Group has a fifty-day simple moving average of GBX 307.85 and a two hundred-day simple moving average of GBX 334.88. Financial metrics show a current ratio of 2.35, a quick ratio of 2.82, and a high debt-to-equity ratio of 144.16. The market capitalization stands at £2.18 billion, with a price-to-earnings ratio of -9.89, and the stock possesses a beta value of 1.85, suggesting higher volatility compared to the market.

Ocado Group recently released its quarterly earnings data on February 27th, revealing an earnings per share (EPS) of GBX (48.91) (($0.62)). This report highlighted a negative return on equity of 15.18% and a negative net margin of 7.23%, raising concerns among investors about the company’s profitability.

About Ocado Group

Ocado Group is a technology company based in the UK that specializes in providing online grocery fulfillment solutions through its Ocado Smart Platform. This innovative platform is utilized by some of the world's largest grocery retailers and includes a notable 50% interest in Ocado Retail Ltd, a joint venture with Marks & Spencer. The Ocado Smart Platform offers not only access to Ocado's physical infrastructure but also sophisticated software applications necessary for managing an efficient, world-class online grocery business.

What Analysts Recommend

Investors considering whether to buy shares in Ocado Group should take note that the stock currently holds a Reduce rating from analysts. Furthermore, market analysts have identified five alternative stocks that are being recommended as better investment opportunities at this time.

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Ocado, Stocks, Finance