Zegona Communications (LON:ZEG) Shares Cross Above 50 Day Moving Average – What’s Next?

Zegona Communications plc (LON:ZEG) shares passed above its fifty day moving average during trading on Friday . The stock has a fifty day moving average of GBX 1,632.13 and traded as high as GBX 1,850. Zegona Communications shares last traded at GBX 1,750, with a volume of 1,739,525 shares changing hands.

Analysts Set New Price Targets

Several research firms recently commented on ZEG. Berenberg Bank restated a “buy” rating and set a GBX 1,350 price target on shares of Zegona Communications in a report on Tuesday, November 25th. Canaccord Genuity Group boosted their price target on shares of Zegona Communications from GBX 1,500 to GBX 2,150 and gave the company a “buy” rating in a report on Monday, January 12th. Three equities research analysts have rated the stock with a Buy rating, According to data from MarketBeat, the company presently has a consensus rating of “Buy” and a consensus target price of GBX 1,683.33.

Zegona Communications Stock Performance

The company has a debt-to-equity ratio of 608.59, a quick ratio of 6.23 and a current ratio of 0.58. The company has a market cap of £4.05 billion, a P/E ratio of 159.09 and a beta of 3.83. The firm has a 50 day moving average price of GBX 1,632.13 and a 200-day moving average price of GBX 1,399.24.

Zegona Communications announced that its board has authorized a stock buyback program on Friday, December 12th that authorizes the company to repurchase 0 shares. This repurchase authorization authorizes the company to purchase shares of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s board believes its shares are undervalued.

Zegona Communications Company Profile

Zegona is publicly listed on the Main Market of the LSE. It was established in 2015 with the objective of investing in businesses in the European Telecommunications, Media and Technology sector and improving their performance to deliver attractive shareholder returns. Zegona is led by former Virgin Media executives Eamonn O’Hare and Robert Samuelson.

In 2024, Zegona completed the acquisition of Vodafone Spain. Vodafone Spain is one of the leading telecoms networks in Spain but following shifts in customer sentiment, Zegona believes the future of the business lies in right-sizing the cost and capex base in the business to the local market context, operating the assets more efficiently and driving value for money service propositions.