Schroders (LON:SDR) Trading 28.3% Higher – Still a Buy?

Schroders plc (LON:SDR)’s stock price shot up 28.3% during trading on Thursday . The company traded as high as GBX 599.50 and last traded at GBX 586.50. 227,505,766 shares traded hands during trading, an increase of 712% from the average session volume of 28,029,219 shares. The stock had previously closed at GBX 457.

Key Headlines Impacting Schroders

Here are the key news stories impacting Schroders this week:

• Positive Sentiment: Report that Schroders has agreed a roughly $13.5bn sale to Nuveen, with the Schroder family selling its stake — a deal announcement typically carries a takeover premium that explains the sharp upward move in the stock. Article Title
• Positive Sentiment: Schroders released quarterly results showing GBX 36.60 EPS for the quarter with net margin ~12.8% and ROE ~8.65% — earnings publication supports fundamentals and makes a takeover valuation easier to justify. Press Release
• Positive Sentiment: Insider buys: small purchases by Meagen Burnett and Richard Oldfield at ~GBX 467 signal management/insider confidence ahead of and around the announcement window. Insider Trades
• Neutral Sentiment: Analyst activity is mixed but constructive: several Buy/Overweight re-affirmations and target changes (RBC, UBS, JPMorgan), though some targets were trimmed earlier — consensus is a Moderate Buy, which supports momentum but leaves room for valuation debate. Analyst Notes
• Neutral Sentiment: Market coverage (WSJ, Investors Chronicle) has flagged Schroders in overseas/M&A commentary, increasing investor attention and trading volume. WSJ Coverage Investors Chronicle
• Negative Sentiment: Deal risks: acquisition subject to shareholder/regulatory approvals, integration risk and possible competing bids — any setbacks could reverse gains. (Watch formal filings, timetable and regulator commentary.)

Analysts Set New Price Targets

Several research firms recently issued reports on SDR. JPMorgan Chase & Co. reiterated an “overweight” rating on shares of Schroders in a research report on Friday, January 9th. Citigroup dropped their price target on Schroders from GBX 435 to GBX 430 and set a “buy” rating for the company in a research note on Friday, October 24th. Royal Bank Of Canada increased their price objective on shares of Schroders from GBX 435 to GBX 440 and gave the company a “buy” rating in a report on Thursday, October 30th. Jefferies Financial Group reiterated a “hold” rating and set a GBX 420 price objective on shares of Schroders in a research report on Friday, January 9th. Finally, UBS Group restated a “buy” rating and set a GBX 455 target price on shares of Schroders in a research report on Friday, October 17th. Four equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of GBX 413.86.

Schroders Trading Up 28.8%

The firm has a market cap of £9.13 billion, a P/E ratio of 26.40, a P/E/G ratio of 1.28 and a beta of 1.17. The stock has a 50 day simple moving average of GBX 424.25 and a 200-day simple moving average of GBX 398.47. The company has a current ratio of 4.90, a quick ratio of 4.32 and a debt-to-equity ratio of 12.95.

Schroders (LON:SDR) last posted its earnings results on Thursday, February 12th. The company reported GBX 36.60 earnings per share for the quarter. Schroders had a net margin of 12.81% and a return on equity of 8.65%. On average, equities research analysts expect that Schroders plc will post 33.7347131 EPS for the current fiscal year.

About Schroders

Schroders plc is a publicly owned investment manager. The firm also provides advisory and consultancy services. It provides its services to financial institutions, high net worth clients, large corporate, local authority, charitable entities, individuals, pension plans, government funds, insurance companies, and endowments. The firm launches and manages equity mutual funds and manages fixed income mutual funds for its clients. It also manages hedge for its clients. The firm invests in the public equity, fixed income, and alternative investment markets across the globe.