Key Points
- Insider buying: Rathbones Group insider Terri Duhon bought 500 shares at GBX 1,614 each, totaling £8,070, adding to recent insider purchases by senior executives.
- Regulatory concerns remain: The company has reportedly suspended or restricted onboarding and investment activity for some high-risk clients while addressing issues raised in an FCA review, which could weigh on near-term revenue and growth.
- Mixed market view: Rathbones also announced a stock buyback authorization, but analysts remain cautious overall, with Jefferies reiterating an "underperform" rating and a GBX 1,780 target price.
Rathbones Group Plc (LON:RAT - Get Free Report) insider Terri Duhon purchased 500 shares of the business's stock in a transaction that occurred on Wednesday, June 17th. The stock was acquired at an average price of GBX 1,614 per share, for a total transaction of £8,070.
Rathbones Group Price Performance
Shares of LON:RAT opened at GBX 1,630 on Thursday. Rathbones Group Plc has a twelve month low of GBX 1,582 and a twelve month high of GBX 2,500. The company's 50 day moving average is GBX 1,977.02 and its 200 day moving average is GBX 2,021.94. The company has a current ratio of 190.82, a quick ratio of 0.14 and a debt-to-equity ratio of 14.65. The company has a market cap of £1.69 billion, a PE ratio of 15.57, a price-to-earnings-growth ratio of -26.52 and a beta of 0.71.
Rathbones Group declared that its Board of Directors has authorized a stock buyback program on Wednesday, June 17th that allows the company to repurchase 0 outstanding shares. This repurchase authorization allows the company to buy shares of its stock through open market purchases. Stock repurchase programs are generally an indication that the company's management believes its shares are undervalued.
Key Stories Impacting Rathbones Group
Here are the key news stories impacting Rathbones Group this week:
- Negative Sentiment: Rathbones has reportedly suspended or restricted onboarding and investment activity for some high-risk clients while it addresses issues identified in the FCA review, raising concerns about near-term revenue and growth. Rathbones shares slide on outcome of FCA engagement, review
- Negative Sentiment: Several headlines point to a potentially costly remedial program, with estimates suggesting a meaningful financial hit and possible disruption to assets and client flows. Rathbones ‘voluntarily’ halts some inflows as part of FCA review
- Negative Sentiment: Analyst commentary remained cautious, with Jefferies reaffirming an “underperform” rating and a GBX 1,780 target, reinforcing bearish sentiment around the stock. Broker view on Rathbones Group
- Positive Sentiment: Recent insider buying by senior executives, including chair Clive Bannister and CEO Jonathan Sorrell, may help signal internal confidence in the business despite the regulatory overhang. Rathbones chair and CEO increase holdings
Wall Street Analyst Weigh In
Separately, Jefferies Financial Group reiterated an "underperform" rating and issued a GBX 1,780 price target on shares of Rathbones Group in a report on Wednesday. Two analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of GBX 2,007.50.
View Our Latest Stock Analysis on Rathbones Group
About Rathbones Group
(
Get Free Report)
With roots dating back to 1742, Rathbones is one of the UK's leading providers of investment and wealth management services for private clients (individuals and families), charities, trustees and professional partners. Rathbones' purpose is to help more people invest their money well, so they can live well.
Rathbones has been trusted for generations to manage, preserve and grow clients' wealth and services include discretionary investment management, fund management, tax planning, trust and company management, financial advice and banking services.
Further Reading
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