Share Repurchase Plan Approved by Rathbones Group (LON:RAT) Board of Directors

Rathbones Group (LON:RAT) declared that its Board of Directors has authorized a share buyback plan on Wednesday, June 17th, RTT News reports. The company plans to repurchase 0 outstanding shares. This repurchase authorization permits the company to reacquire shares of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s management believes its shares are undervalued.

Rathbones Group Stock Up 0.6%

Shares of RAT traded up GBX 10 during mid-day trading on Wednesday, reaching GBX 1,630. The company’s stock had a trading volume of 1,207,734 shares, compared to its average volume of 500,066. The business has a fifty day moving average of GBX 1,977.02 and a 200 day moving average of GBX 2,021.94. The company has a market cap of £1.69 billion, a price-to-earnings ratio of 15.57, a price-to-earnings-growth ratio of -26.52 and a beta of 0.71. Rathbones Group has a 1 year low of GBX 1,582 and a 1 year high of GBX 2,500. The company has a quick ratio of 0.14, a current ratio of 190.82 and a debt-to-equity ratio of 14.65.

Analysts Set New Price Targets

Separately, Jefferies Financial Group reissued an “underperform” rating and issued a GBX 1,780 price objective on shares of Rathbones Group in a report on Wednesday. Two investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of GBX 2,007.50.

Insiders Place Their Bets

In other Rathbones Group news, insider Jonathan Sorrell  bought 15,320 shares of the stock in a transaction on Tuesday, June 16th. The stock was purchased at an average price of GBX 1,630 per share, with a total value of £249,716. Also, insider Clive Bannister bought 15,300 shares of the stock in a transaction on Tuesday, June 16th. The shares were acquired at an average cost of GBX 1,638 per share, with a total value of £250,614. Insiders have acquired 31,136 shares of company stock valued at $50,870,560 over the last three months. 1.41% of the stock is currently owned by insiders.

Key Headlines Impacting Rathbones Group

Here are the key news stories impacting Rathbones Group this week:

• Negative Sentiment: Rathbones has reportedly suspended or restricted onboarding and investment activity for some high-risk clients while it addresses issues identified in the FCA review, raising concerns about near-term revenue and growth. Rathbones shares slide on outcome of FCA engagement, review
• Negative Sentiment: Several headlines point to a potentially costly remedial program, with estimates suggesting a meaningful financial hit and possible disruption to assets and client flows. Rathbones ‘voluntarily’ halts some inflows as part of FCA review
• Negative Sentiment: Analyst commentary remained cautious, with Jefferies reaffirming an “underperform” rating and a GBX 1,780 target, reinforcing bearish sentiment around the stock. Broker view on Rathbones Group
• Positive Sentiment: Recent insider buying by senior executives, including chair Clive Bannister and CEO Jonathan Sorrell, may help signal internal confidence in the business despite the regulatory overhang. Rathbones chair and CEO increase holdings

Rathbones Group Company Profile

With roots dating back to 1742, Rathbones is one of the UK’s leading providers of investment and wealth management services for private clients (individuals and families), charities, trustees and professional partners. Rathbones’ purpose is to help more people invest their money well, so they can live well.

Rathbones has been trusted for generations to manage, preserve and grow clients’ wealth and services include discretionary investment management, fund management, tax planning, trust and company management, financial advice and banking services.