Peel Hunt and Panmure Gordon Maintain Buy Ratings for FirstGroup

Investment firms Peel Hunt and Panmure Gordon have maintained their buy ratings for shares of FirstGroup (LON:FGP) in recent reports. On November 19, 2023, Peel Hunt reiterated a price target of GBX 245 for the transport operator’s stock, while Panmure Gordon set a slightly higher target at GBX 250.

A total of three equity research analysts have assigned a buy rating to FirstGroup, according to data from MarketBeat.com. The stock currently holds a consensus rating of “Buy” with an average price target aligning with Peel Hunt’s estimate at GBX 245.

FirstGroup’s Recent Financial Performance

FirstGroup recently announced its quarterly earnings, revealing earnings per share of GBX 9.90 for the quarter ending on November 18, 2023. Despite this positive earnings report, the company reported a negative return on equity of 2.54% and a negative net margin of 0.34%. Research analysts project that FirstGroup will post an earnings per share of approximately 17.38 for the current fiscal year.

Insider Activity Indicates Confidence

In addition to the analysts’ positive outlook, insider transactions have shown significant confidence in FirstGroup’s future. On November 19, 2023, insider Lena Wilson CBE purchased 11,000 shares at an average cost of GBX 178 per share, totaling £19,580. Another insider, Graham Sutherland, acquired 50,000 shares at an average price of GBX 179, amounting to £89,500. Over the last three months, insiders have bought a total of 61,142 shares valued at approximately $10.94 million, representing about 1.02% of the company’s stock.

FirstGroup plc is primarily known for providing public transport services across the United Kingdom. The company operates through two main segments: First Bus, which manages a fleet of around 4,900 buses, and First Rail, which operates a comprehensive passenger rail network, offering services under franchises such as Great Western Railway and South Western Railway.

As analysts and insiders demonstrate a strong belief in FirstGroup’s potential, investors will be closely monitoring upcoming financial reports and market developments to gauge the company’s trajectory.