ITM Power (LON:ITM) Share Price Drops Below 200-Day Moving Average - Is It Time to Sell?

ITM Power Plc (LON:ITM) saw its share price fall below the 200-day moving average on Friday, indicating a potential shift in the stock's performance. The stock's 200-day moving average is set at GBX 42.61 ($0.53), while it traded as low as GBX 35.52 ($0.44) during the day. Ultimately, ITM Power’s shares closed at GBX 35.63 ($0.44) with a trading volume of 1,690,980 shares.

New Price Targets from Analysts

Recently, several analysts have provided updated forecasts for ITM Power shares. Berenberg Bank reaffirmed a "hold" rating and set a target price of GBX 59 ($0.73) in a note dated December 5th. The Royal Bank of Canada also maintained an "outperform" rating and assigned a price objective of GBX 70 ($0.87) in their report on December 6th. Meanwhile, Jefferies Financial Group continued to recommend a "buy" rating with a target price of GBX 60 ($0.74) on the same day.

ITM Power Stock Declines by 3.2%

As of now, ITM Power has a debt-to-equity ratio of 4.73, a quick ratio of 7.56, and a current ratio of 4.17. Its stock is currently trading below its 50-day simple moving average of GBX 35.76 and the aforementioned 200-day simple moving average of GBX 42.61. The market capitalization of the company stands at £219.70 million, while its price-to-earnings ratio is reported at -890.65, showing significant losses. The stock's beta is 2.03, suggesting greater volatility compared to the broader market.

On January 31st, the company released its latest earnings, reporting a loss of GBX (4.70) (($0.06)) per share for the quarter. Notably, ITM Power experienced a negative return on equity of 9.65% and a substantial negative net margin of 164.90%. Analysts anticipate that the company will record an EPS of -8.92 for the current year.

Insider Transactions Highlight Confidence

In related news, insider Simon Bourne acquired 792 shares of ITM Power stock in a transaction completed on January 15th. The average purchase price was GBX 38 ($0.47) per share, totaling a value of £300.96 ($373.35). Over the last ninety days, insiders have purchased a cumulative total of 1,605 shares valued at approximately $60,177. Insiders currently hold 48.26% of the company's shares, reflecting a significant commitment to the firm.

About ITM Power

Founded in 2000, ITM Power PLC is a company based in Sheffield, England, and it was listed on the London Stock Exchange's AIM market in 2004. The company specializes in designing and manufacturing electrolysers that employ proton exchange membrane (PEM) technology to produce green hydrogen. This process utilizes renewable electricity and water, contributing to the creation of the only net-zero energy gas.

ITM, Shares, Analysts