Analysts Reaffirm Buy Ratings for FirstGroup Amid Positive Trends

Peel Hunt has reiterated its buy rating on shares of FirstGroup plc (LON: FGP) in a report released on November 18, 2023. The investment firm has set a price target of GBX 245 for the transport operator’s stock. On the same day, Panmure Gordon also maintained a buy rating, with a slightly higher price target of GBX 250. According to data from MarketBeat.com, three equities research analysts have rated FirstGroup’s stock as a buy, leading to a consensus rating of buy and a consensus price target of GBX 245.

FirstGroup’s stock has shown a positive movement, trading up by 1.4%. The company recently announced its quarterly earnings, revealing earnings per share of GBX 9.90. Despite this, the transport operator recorded a negative return on equity of 2.54% and a negative net margin of 0.34%. Looking ahead, analysts anticipate that FirstGroup will report an earnings per share figure of approximately 17.38 for the current fiscal year.

Insider Activity Indicates Confidence

In a notable development, insiders at FirstGroup have shown confidence in the company’s performance through recent stock purchases. On November 19, 2023, Lena Wilson CBE acquired 11,000 shares at an average cost of GBX 178 per share, totaling £19,580. Additionally, another insider, Graham Sutherland, purchased 50,000 shares at an average price of GBX 179, resulting in a total acquisition cost of £89,500. Over the past three months, insiders have purchased a total of 61,142 shares, valued at approximately $10,938,084, constituting 1.02% of the company’s stock.

FirstGroup’s Operations and Market Position

FirstGroup plc is a prominent provider of public transport services across the United Kingdom. The company operates through two main segments: First Bus and First Rail. The First Bus segment manages a fleet of around 4,900 buses, delivering local bus services. Meanwhile, the First Rail segment oversees a passenger rail network, offering a range of services including long-distance, commuter, regional, and sleeper options. This network includes franchises such as Great Western Railway, South Western Railway, TransPennine Express, and Avanti West Coast.

As FirstGroup continues to navigate the evolving transportation landscape, the reaffirmation of buy ratings from analysts and insider investments reflect a degree of optimism regarding the company’s future performance.