Chemring Group (LON:CHG) Stock Price Up 14.8% – Should You Buy?

Chemring Group PLC (LON:CHG)’s share price rose 14.8% during mid-day trading on Monday . The company traded as high as GBX 416.46 ($5.27) and last traded at GBX 411 ($5.20). Approximately 9,506,106 shares were traded 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 ($4.53).

Analysts Set New Price Targets

Separately, Jefferies Financial Group reissued a “buy” rating and issued a GBX 470 ($5.95) price target on shares of Chemring Group in a report on Tuesday, December 17th. One equities research analyst has rated the stock with a sell rating and four have given a buy rating to the stock. According to data from MarketBeat, Chemring Group presently has a consensus rating of “Moderate Buy” and a consensus price target of GBX 429.50 ($5.44).

Chemring Group Price Performance

The company has a quick ratio of 0.71, a current ratio of 1.22 and a debt-to-equity ratio of 27.42. The firm’s fifty day moving average price is GBX 327.11 and its 200-day moving average price is GBX 357.94. The stock has a market cap of £1.09 billion, a P/E ratio of 495.87, a PEG ratio of 1.99 and a beta of 0.68.

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

Chemring Group Increases Dividend

The firm also recently announced a dividend, which will be paid on Friday, April 11th. Stockholders of record on Thursday, March 20th will be issued a dividend of GBX 5.20 ($0.07) per share. This represents a dividend yield of 1.44%. This is a positive change from Chemring Group’s previous dividend of $2.60. The ex-dividend date is Thursday, March 20th. Chemring Group’s dividend payout ratio (DPR) is presently 857.06%.

Insider Buying and Selling

In other news, insider James Mortensen purchased 9,125 shares of Chemring Group stock in a transaction that occurred on Tuesday, December 17th. The stock was bought at an average price of GBX 329 ($4.16) per share, with a total value of £30,021.25 ($37,991.96). 1.69% of the stock is currently owned by company insiders.

About Chemring Group

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.