Chemring Group (LON:CHG) Shares Up 14.8% – Still a Buy?

Chemring Group PLC (LON:CHG) traded up 14.8% on Monday . The stock traded as high as GBX 416.46 ($5.28) and last traded at GBX 411 ($5.21). 9,506,106 shares traded hands during mid-day trading, an increase of 321% from the average session volume of 2,258,005 shares. The stock had previously closed at GBX 358 ($4.54).

Analyst Upgrades and Downgrades

CHG has been the topic of a number of recent analyst reports. Jefferies Financial Group reiterated a “buy” rating and issued a GBX 470 ($5.96) price objective on shares of Chemring Group in a research report on Tuesday, December 17th. Shore Capital reaffirmed a “buy” rating on shares of Chemring Group in a research note on Tuesday. One investment analyst has rated the stock with a sell rating and four have issued a buy rating to the company. According to data from MarketBeat, Chemring Group has a consensus rating of “Moderate Buy” and an average target price of GBX 429.50 ($5.44).

Chemring Group Stock Performance

The company has a 50-day simple moving average of GBX 328.17 and a two-hundred day simple moving average of GBX 357.80. The company has a debt-to-equity ratio of 27.42, a quick ratio of 0.71 and a current ratio of 1.22. The firm has a market capitalization of £1.05 billion, a P/E ratio of 477.51, a PEG ratio of 1.99 and a beta of 0.68.

Chemring Group (LON:CHG) last released its quarterly earnings results on Tuesday, December 17th. The company reported GBX 15.70 ($0.20) earnings per share for the quarter. Chemring Group had a return on equity of 0.88% and a net margin of 0.64%. As a group, equities analysts forecast that Chemring Group PLC will post 24.8815166 EPS for the current year.

Chemring Group Increases Dividend

The firm also recently announced a dividend, which will be paid on Friday, April 11th. Stockholders of record on Thursday, March 20th will be given a GBX 5.20 ($0.07) dividend. The ex-dividend date of this dividend is Thursday, March 20th. This is an increase from Chemring Group’s previous dividend of $2.60. This represents a dividend yield of 1.44%. Chemring Group’s dividend payout ratio is currently 857.06%.

Insider Activity at Chemring Group

In related news, insider James Mortensen purchased 9,125 shares of the business’s stock in a transaction that occurred on Tuesday, December 17th. The shares were bought at an average price of GBX 329 ($4.17) per share, for a total transaction of £30,021.25 ($38,049.75). 1.69% of the stock is currently owned by corporate insiders.

About Chemring Group

We are a specialist manufacturing and technology business creating market-leading innovative solutions to meet our customers’ complex needs.

Using our extensive science and engineering expertise, we turn ideas into reality, designing and developing critical solutions that protect and safeguard in unpredictable environments in today’s increasingly unstable world.

We achieve this by innovating at every stage of the value chain, from research and development (“R&D”) through to design, manufacture and in-service support, working closely with our customers to deliver products, services and solutions for mission-critical success.

Our customer base spans national defence organisations, security and law enforcement agencies, as well as commercial markets such as space and transport.