Zegona Communications (LON:ZEG) Stock Price Down 1.1% – What’s Next?

Zegona Communications plc (LON:ZEG)’s share price was down 1.1% on Thursday . The company traded as low as GBX 1,317.33 and last traded at GBX 1,330.09. Approximately 533,518 shares changed hands during trading, a decline of 81% from the average daily volume of 2,769,655 shares. The stock had previously closed at GBX 1,345.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on ZEG. Canaccord Genuity Group reaffirmed a “buy” rating and issued a GBX 1,500 target price on shares of Zegona Communications in a research report on Wednesday, November 26th. Berenberg Bank reissued a “buy” rating and set a GBX 1,350 price target on shares of Zegona Communications in a research report on Tuesday, November 25th. Three research analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, the company has an average rating of “Buy” and an average price target of GBX 1,466.67.

Zegona Communications Price Performance

The firm has a market capitalization of £10.08 billion, a PE ratio of 120.92 and a beta of 2.80. The stock has a 50-day moving average price of GBX 1,324.63 and a 200-day moving average price of GBX 1,146.23.

Zegona Communications declared that its Board of Directors has initiated a share buyback plan on Friday, December 12th that allows the company to repurchase 0 outstanding shares. This repurchase authorization allows the company to repurchase shares of its stock through open market purchases. Shares repurchase plans are often an indication that the company’s leadership believes its stock is undervalued.

Zegona Communications Company Profile

Zegona is a British company investing strategically across the Europe with the objective of acquiring businesses in the European TMT sector, using a “Buy-Fix-Sell” strategy to deliver attractive shareholder returns.

The first acquisition made by Zegona was of Asturian telecommunications operator Telecable in 2015. Telecable was later sold to Euskaltel in 2017, at which point Zegona acquired a 15% ownership of Euskaltel.

Zegona has subsequently increased its disclosable interest in Euskaltel to over 20%, becoming the largest shareholder in the company.