Grafton Group (LON:GFTU) Sets New 12-Month High – Time to Buy?

Grafton Group plc (LON:GFTU) shares reached a new 52-week high during mid-day trading on Tuesday . The company traded as high as GBX 1,019 and last traded at GBX 1,011.27, with a volume of 696961 shares changing hands. The stock had previously closed at GBX 992.10.

Wall Street Analysts Forecast Growth

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

Grafton Group Stock Performance

The company has a 50-day moving average of GBX 899.81 and a 200-day moving average of GBX 909.21. The firm has a market capitalization of £2.39 billion, a price-to-earnings ratio of 11.28, 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.

Grafton Group announced that its Board of Directors has initiated a stock repurchase program on Tuesday, June 30th that authorizes the company to repurchase 0 outstanding shares. This repurchase authorization authorizes the company to reacquire shares of its stock through open market purchases. Shares repurchase programs are generally an indication that the company’s management believes its stock is 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.