Derwent London (LON:DLN) Stock Crosses Below Two Hundred Day Moving Average – Time to Sell?

Derwent London Plc (LON:DLN)’s share price crossed below its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of GBX 1,733.37 and traded as low as GBX 1,732. Derwent London shares last traded at GBX 1,743, with a volume of 147,689 shares changing hands.

Analysts Set New Price Targets

Several equities analysts recently commented on DLN shares. Stifel Nicolaus decreased their price objective on shares of Derwent London from GBX 1,925 to GBX 1,650 and set a “hold” rating for the company in a research report on Tuesday, March 31st. Deutsche Bank Aktiengesellschaft restated a “hold” rating and set a GBX 1,850 price objective on shares of Derwent London in a research note on Wednesday, May 13th. Jefferies Financial Group restated an “underperform” rating and set a GBX 1,492 price objective on shares of Derwent London in a research note on Tuesday, May 12th. The Goldman Sachs Group decreased their price objective on shares of Derwent London from GBX 2,550 to GBX 2,410 and set a “buy” rating for the company in a research note on Monday, March 30th. Finally, Berenberg Bank decreased their price objective on shares of Derwent London from GBX 2,296 to GBX 2,210 and set a “buy” rating for the company in a research note on Wednesday, April 1st. Four investment analysts have rated the stock with a Buy rating, three have given a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and a consensus target price of GBX 1,956.50.

Derwent London Stock Performance

The company has a debt-to-equity ratio of 43.37, a quick ratio of 0.38 and a current ratio of 0.59. The firm’s 50 day simple moving average is GBX 1,674.62 and its 200 day simple moving average is GBX 1,733.37. The firm has a market capitalization of £1.99 billion, a price-to-earnings ratio of 12.32, a PEG ratio of 23.10 and a beta of 1.19.

Derwent London (LON:DLN) last announced its quarterly earnings data on Thursday, February 26th. The real estate investment trust reported GBX 98.40 EPS for the quarter. Derwent London had a net margin of 40.73% and a return on equity of 4.48%. Sell-side analysts forecast that Derwent London Plc will post 113.7351779 earnings per share for the current fiscal year.

Derwent London announced that its Board of Directors has approved a stock repurchase plan on Tuesday, May 12th that allows the company to buyback 0 shares. This buyback authorization allows the real estate investment trust to purchase shares of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s management believes its stock is undervalued.

Insider Activity

In other news, insider Damian Wisniewski sold 2,767 shares of Derwent London 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. Also, insider Emily Prideaux sold 2,469 shares of Derwent London 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 £39,578.07. Insiders sold a total of 8,694 shares of company stock valued at $13,936,482 in the last three months. 0.40% of the stock is currently owned by corporate insiders.

About Derwent London

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.