Grafton Group (LON:GFTU) Sets New 52-Week High – Still a Buy?

Grafton Group plc (LON:GFTU)’s share price reached a new 52-week high during trading on Monday . The stock traded as high as GBX 1,047 and last traded at GBX 1,035.50, with a volume of 34867 shares traded. The stock had previously closed at GBX 1,042.80.

Analyst Ratings Changes

GFTU has been the topic of a number of analyst reports. Berenberg Bank increased their price objective on Grafton Group from GBX 1,000 to GBX 1,150 and gave the company a “buy” rating in a report on Wednesday, July 8th. Deutsche Bank Aktiengesellschaft restated a “buy” rating and issued a GBX 1,275 target price on shares of Grafton Group in a report on Monday, May 18th. Citigroup lowered their price target on Grafton Group from £115 to £110 and set a “buy” rating on the stock in a report on Friday, June 19th. Finally, Peel Hunt reissued a “buy” rating and issued a GBX 1,160 price target on shares of Grafton Group in a research report on Monday, July 13th. Six equities research analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the company has a consensus rating of “Buy” and an average target price of GBX 2,825.

Grafton Group Price Performance

The company has a market cap of £2.43 billion, a price-to-earnings ratio of 11.43, a price-to-earnings-growth ratio of 1.58 and a beta of 1.07. The company has a current ratio of 2.11, a quick ratio of 1.56 and a debt-to-equity ratio of 37.55. The company has a fifty day moving average price of GBX 916.85 and a two-hundred day moving average price of GBX 912.16.

Grafton Group declared that its board has approved a stock buyback program on Tuesday, June 30th that authorizes the company to buyback 0 shares. This buyback authorization authorizes the company to reacquire shares of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s board of directors believes its shares are undervalued.

Grafton Group Company Profile

Grafton Group plc engages in the distribution, retailing, and manufacturing businesses in Ireland, the Netherlands, Finland, and the United Kingdom. Its Distribution segment distributes building materials, paint, tools, ironmongery, fixings, and accessories, workwear and PPE, and spare parts; materials and plant for mechanical services, heating, plumbing, and air movement; and trade, DIY, and self-build markets with building materials, timber, doors and floors, plumbing and heating, bathrooms, and landscaping products under the Selco, Leyland SDM, Chadwicks, MacBlair, Isero, Polvo, Gunters en Meuser, TG Lynes, and IKH brands.