Close Brothers Group (LON:CBG) Shares Down 21.6% - Should You Sell?

Close Brothers Group plc (LON:CBG) saw its shares decrease by 21.6% during trading on Tuesday. The stock hit a low of GBX 258.20 ($3.36) and was last seen trading at GBX 270.80 ($3.52). A total of 125,087,578 shares changed hands, representing a staggering increase of 2,586% compared to the average session volume of 4,656,207 shares. The stock had previously closed at GBX 345.40 ($4.49).

Recent Analyst Recommendations

In light of this significant decline, various brokerages have recently updated their views on Close Brothers Group. Shore Capital maintained a "buy" rating for the stock in a report issued on Tuesday. Meanwhile, Deutsche Bank Aktiengesellschaft adjusted their price target for Close Brothers Group, lowering it from GBX 610 ($7.93) to GBX 600 ($7.80) and issued a "hold" rating on February 13th.

Performance Overview

The company's 50-day moving average price stands at GBX 305.84, while the 200-day moving average is at GBX 315.11. Close Brothers Group holds a market capitalization of £407.99 million, with a price-to-earnings ratio of 4.08 and a price-to-earnings-growth ratio of 1.87, accompanied by a beta of 0.82.

The firm disclosed its quarterly earnings data on March 18th, reporting an earnings per share of GBX 30.90 ($0.40). Additionally, Close Brothers Group achieved a return on equity of 5.78% and had a net margin of 7.79%. Analysts project the company will report an earnings per share of 66.01 for the current fiscal year.

Company Insight

Close Brothers Group plc operates as a merchant banking company, offering various financial services tailored to small businesses and individuals across the UK. The company is segmented into five main areas: Commercial, Retail, Property, Asset Management, and Securities. Its offerings include banking services such as debt factoring, invoice discounting, asset-based lending, and financing for small and medium-sized enterprises (SMEs). They also provide refinancing options for residential housing, renewable energy, and commercial vehicle financing among others.

Investment Considerations

Before making any investment decisions regarding Close Brothers Group, investors should consider the current market sentiment and the company's performance indicators. While the stock carries a Moderate Buy rating per analyst recommendations, top-rated analysts have identified other potentially more favorable stocks. Investors seeking insights into attractive stock options may want to explore alternatives outside Close Brothers Group.

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