The UK-based engineering solution provider (LON: WEIR) has been given a consensus rating of “Moderate Buy” according to Bloomberg Ratings. Out of 6 equity analysts, one rates the stock as a hold, while the remaining five have issued a buy rating on the company. The average one-year price target among the brokerages that have reported on the stock in the past year is £2107.
Over the past few months, The Weir group’s shares have ranged from a low point of £1312 to a high level of £2072. The stock’s 50-day moving average line stands at £1854. Its 200-day moving average is £1808, which is in addition indicating its brief-time period performance. The WEIR stock price opened at £1900 this Tuesday.
Financial performance of the company
Financially, its price-to-earnings (PE) ratio stands at 19.7 whereas its Earnings per share stands at $0.9. The return on equity is coming up to an optimum level of 14.9%. The operating margin of the company is about 15% while its net profit margin is 9.7%.
Coming down to the balance sheet, the firm is low on debt when compared to its retained income (reserves) with a debt-to-equity ratio of 0.86. Along with it, the current ratio is 2.17 whilst the quick ratio which excludes the inventory values is 1.38 indicating that the company has premiere ranges of cash.
Furthermore, with a market capitalization of £4.8 billion, the company is considered a small-cap company. The Weir Group has a slightly higher volatility than the broader market with a beta of 1.53.
Technical analysis and prediction of WEIR stock price
Currently, the current trading level for WEIR stock price is $1874, and it is heading towards its immediate support level of $1839. The stock has been underperforming for the past few weeks, and on Monday, the bears regained control of the immediate resistance level of $1952, which the bulls were trying to break past.
In recent times, the RSI has also displayed similar behavior when the stock was attempting to break the resistance level of $1953. The RSI has fallen below its neutral level of 49, while its Simple Moving Average line is at 60, indicating a bearish trend.
Conclusion
The Weir stock has received buy ratings from analysts from Bloomberg, as the stock has great financials. The margins of the company are great and the balance sheet is also full of cash. Its price prediction will be bullish if the bulls are able to reclaim the support.
Technical Levels
Support: £1839, and $1692
Resistance: £1953, and £2049
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/09/28/weir-stock-price-stock-price-has-been-rated-bullish-by-bloomberg/