Pennon Group (LON:PNN) Reaches New 12-Month Low – Here’s Why

Pennon Group Plc (LON:PNN)’s share price hit a new 52-week low on Wednesday. The stock traded as low as GBX 372 and last traded at GBX 382, with a volume of 143251922 shares. The stock had previously closed at GBX 452.

Key Headlines Impacting Pennon Group

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

• Positive Sentiment: Pennon is raising £550 million through a rights issue to support increased investment under AMP8, reducing pressure on the balance sheet and helping fund regulatory infrastructure commitments. The shares have recovered from the sharp sell-off that followed the announcement. Pennon Group Shares Recover Following Rights Issue and Dividend Reduction
• Neutral Sentiment: Jefferies reaffirmed its “hold” rating and set a GBX 500 price target. The target indicates potential upside from recent trading levels, but the unchanged neutral recommendation suggests the broker sees a balanced risk-reward profile while the funding and investment plans are implemented. Pennon Group Earns Hold Rating from Jefferies Financial Group
• Negative Sentiment: The rights issue will dilute shareholders who do not participate, while Pennon’s decision to reduce and rebase its dividend weakens the stock’s income appeal. These concerns triggered a substantial initial decline and remain key risks for investors focused on yield. Pennon Shares Tumble on Rights Issue and Dividend Cut

Analyst Ratings Changes

A number of research analysts have recently issued reports on PNN shares. Deutsche Bank Aktiengesellschaft cut their target price on shares of Pennon Group from GBX 620 to GBX 550 and set a “buy” rating for the company in a research note on Tuesday, June 16th. Jefferies Financial Group reiterated a “hold” rating and issued a GBX 500 price objective on shares of Pennon Group in a research report on Thursday. Citigroup decreased their target price on Pennon Group from GBX 6,560 to GBX 5,520 and set a “buy” rating on the stock in a report on Thursday, June 11th. Finally, Royal Bank Of Canada reaffirmed an “outperform” rating and issued a GBX 575 price target on shares of Pennon Group in a report on Tuesday, August 25th. Five analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of GBX 1,297.14.

Pennon Group Price Performance

The stock has a 50-day simple moving average of GBX 455.54 and a 200 day simple moving average of GBX 488.66. The stock has a market capitalization of £1.76 billion, a P/E ratio of 19.35, a price-to-earnings-growth ratio of 8.20 and a beta of 0.57. The company has a debt-to-equity ratio of 347.81, a quick ratio of 1.53 and a current ratio of 1.51.

Insider Transactions at Pennon Group

In related news, insider Laura Flowerdew sold 1,119 shares of Pennon Group stock in a transaction dated Monday, July 20th. The stock was sold at an average price of GBX 493, for a total value of £5,516.67. Insiders bought a total of 96 shares of company stock valued at $44,883 in the last quarter. 0.32% of the stock is owned by company insiders.

About Pennon Group

At the top end of the FTSE 250, Pennon is an infrastructure group, focused on the UK water market is one of only three listed water companies in the UK. Operating in a stable regulatory environment with a positive outlook, we are focused on long-term sustainable growth, through disciplined capital allocation, organic and acquisitive. Our 25-year rolling licence provides predictable index-linked growth and visibility over future revenues.

We provide clean and wastewater services through our businesses across the Great South West.