Derwent London (LON:DLN) Shares Pass Above 200 Day Moving Average – Here’s Why

Shares of Derwent London Plc (LON:DLN) passed above its 200-day moving average during trading on Friday . The stock has a 200-day moving average of GBX 1,790.32 and traded as high as GBX 2,070. Derwent London shares last traded at GBX 2,046, with a volume of 231,681 shares changing hands.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on DLN. UBS Group reiterated a “sell” rating and set a GBX 1,650 target price on shares of Derwent London in a research report on Monday, May 11th. Berenberg Bank dropped their price target on shares of Derwent London from GBX 2,296 to GBX 2,210 and set a “buy” rating for the company in a research report on Wednesday, April 1st. The Goldman Sachs Group cut their price target 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. Jefferies Financial Group reaffirmed an “underperform” rating and set a GBX 1,492 price objective on shares of Derwent London in a report on Wednesday, July 1st. Finally, Stifel Nicolaus decreased their price objective on Derwent London from GBX 1,925 to GBX 1,650 and set a “hold” rating on the stock in a report on Tuesday, March 31st. Four equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of GBX 1,956.50.

Derwent London Price Performance

The stock has a fifty day moving average of GBX 1,855.67 and a two-hundred day moving average of GBX 1,790.32. 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 stock has a market capitalization of £2.28 billion, a price-to-earnings ratio of 14.26, a PEG ratio of 23.10 and a beta of 1.19.

Derwent London announced that its Board of Directors has approved a stock repurchase program on Tuesday, May 12th that allows the company to buyback 0 outstanding shares. This buyback authorization allows the real estate investment trust to buy shares of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s board believes its shares are undervalued.

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.