Derwent London (LON:DLN) Shares Pass Above Two Hundred Day Moving Average – Should You Sell?

Derwent London Plc (LON:DLN)’s stock price crossed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of GBX 1,732.69 and traded as high as GBX 1,797. Derwent London shares last traded at GBX 1,763, with a volume of 360,920 shares.

Analyst Upgrades and Downgrades

A number of equities research analysts recently issued reports on the company. Berenberg Bank reduced their price target on Derwent London from GBX 2,296 to GBX 2,210 and set a “buy” rating on the stock in a research report on Wednesday, April 1st. Jefferies Financial Group reissued an “underperform” rating and set a GBX 1,492 price target on shares of Derwent London in a research report on Tuesday, May 12th. Stifel Nicolaus reduced their price target on Derwent London from GBX 1,925 to GBX 1,650 and set a “hold” rating on the stock in a research report on Tuesday, March 31st. The Goldman Sachs Group reduced their price target on shares of Derwent London from GBX 2,550 to GBX 2,410 and set a “buy” rating on the stock in a research report on Monday, March 30th. Finally, UBS Group reiterated a “sell” rating and set a GBX 1,650 price target on shares of Derwent London in a research report on Monday, May 11th. Four equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of GBX 1,956.50.

Derwent London Price Performance

The company has a current ratio of 0.59, a quick ratio of 0.38 and a debt-to-equity ratio of 43.37. The firm has a market cap of £1.98 billion, a price-to-earnings ratio of 12.30, a price-to-earnings-growth ratio of 23.10 and a beta of 1.19. The company’s 50-day moving average is GBX 1,701.03 and its 200-day moving average is GBX 1,733.27.

Derwent London announced that its board has authorized a share repurchase plan on Tuesday, May 12th that authorizes the company to repurchase 0 outstanding shares. This repurchase authorization authorizes the real estate investment trust to repurchase shares of its stock through open market purchases. Stock repurchase plans are often an indication that the company’s management believes its stock is undervalued.

Insider Activity

In other news, insider Paul M. Williams sold 3,458 shares of the firm’s stock in a transaction that occurred on Tuesday, April 7th. The shares were sold at an average price of GBX 1,603, for a total value of £55,431.74. Also, insider Damian Wisniewski sold 2,767 shares of the firm’s stock in a transaction that occurred on Tuesday, April 7th. The shares were sold at an average price of GBX 1,603, for a total transaction of £44,355.01. In the last three months, insiders have sold 8,694 shares of company stock worth $13,936,482. Corporate insiders own 0.40% of the company’s stock.

Derwent London Company Profile

Derwent London plc owns 66 buildings in a commercial real estate portfolio predominantly in central London valued at £4.9 billion as at 31 December 2023, making it the largest London office-focused real estate investment trust (REIT). Our experienced team has a long track record of creating value throughout the property cycle by regenerating our buildings via development or refurbishment, effective asset management and capital recycling. We typically acquire central London properties off-market with low capital values and modest rents in improving locations, most of which are either in the West End or the Tech Belt.