Capita plc (LON:CPI) Given Average Recommendation of “Moderate Buy” by Analysts

Shares of Capita plc (LON:CPI) have received a consensus rating of “Moderate Buy” from the six brokerages that are presently covering the company, MarketBeat Ratings reports. Two research analysts have rated the stock with a hold recommendation and four have issued a buy recommendation on the company. The average 12 month price objective among brokerages that have issued a report on the stock in the last year is GBX 464.20.

Several research firms have recently issued reports on CPI. Berenberg Bank lowered their price target on Capita to GBX 330 and set a “hold” rating for the company in a research report on Wednesday, March 11th. Canaccord Genuity Group restated a “buy” rating and set a GBX 900 price objective on shares of Capita in a research note on Friday. Royal Bank Of Canada reiterated an “outperform” rating and issued a GBX 450 target price on shares of Capita in a research note on Friday. Deutsche Bank Aktiengesellschaft raised their price target on shares of Capita from GBX 300 to GBX 320 and gave the company a “hold” rating in a research report on Friday. Finally, Shore Capital Group reaffirmed a “buy” rating on shares of Capita in a research report on Thursday.

Capita Stock Performance

Capita stock opened at GBX 270 on Friday. Capita has a twelve month low of GBX 168 and a twelve month high of GBX 415.50. The company has a quick ratio of 0.53, a current ratio of 0.54 and a debt-to-equity ratio of 964.14. The company has a market capitalization of £307.12 million, a P/E ratio of 19.91, a PEG ratio of 0.18 and a beta of 0.66. The stock’s 50 day moving average is GBX 340.75 and its 200 day moving average is GBX 337.15.

Capita (LON:CPI) last announced its quarterly earnings data on Tuesday, March 10th. The company reported GBX 49.71 earnings per share (EPS) for the quarter. Capita had a negative return on equity of 142.88% and a negative net margin of 7.45%.

Capita News Roundup

Here are the key news stories impacting Capita this week:

• Positive Sentiment: Sale of private‑sector contact centres — Capita agreed to sell its private‑sector contact‑centre business to an investment firm, a strategic move to refocus on public services and pensions; the deal was reported to have driven an intraday jump in the shares as investors view it as simplification and a step toward improving margins and cash flow. Capita shares jump on sale of call centre business Capita sells private-sector contact centres (TipRanks)
• Positive Sentiment: Broker support — several brokers reaffirmed or upgraded ratings with higher targets: RBC reaffirmed an “outperform” and set a GBX 450 target, Canaccord kept a “buy” and a GBX 900 target, and Shore Capital reaffirmed “buy” — these notes provide buy‑side endorsements that can underpin demand. Broker ratings (LSE)
• Neutral Sentiment: Deutsche Bank raised its price target from GBX 300 to GBX 320 but kept a “hold” rating — a modest upgrade in valuation but not a conviction buy signal. Deutsche Bank rating update (LSE)
• Negative Sentiment: Weak liquidity and high leverage — Capita reports a low current ratio (~0.54), quick ratio (~0.53) and an extremely high debt‑to‑equity ratio (~964), leaving the company sensitive to cash flow swings and refinancing risk.
• Negative Sentiment: Poor profitability metrics — recent filings show a negative net margin and a negative return on equity; despite a trailing P/E around 20, underlying margins remain a concern for durable earnings improvement.
• Negative Sentiment: Technical/valuation context — the share price sits well below its 50‑ and 200‑day moving averages (GBX ~341 and ~337 respectively), and analyst targets vary widely (GBX 320–900), highlighting investor uncertainty and potential volatility.

Insiders Place Their Bets

In other Capita news, insider Pablo Andres purchased 12,178 shares of the stock in a transaction dated Wednesday, March 11th. The shares were purchased at an average cost of GBX 280 per share, with a total value of £34,098.40. Also, insider Adolfo Hernandez acquired 34,540 shares of Capita stock in a transaction that occurred on Friday, March 13th. The stock was acquired at an average price of GBX 279 per share, with a total value of £96,366.60. Over the last ninety days, insiders have bought 58,718 shares of company stock worth $16,346,500. Corporate insiders own 13.40% of the company’s stock.

Capita Company Profile

Capita is a modern outsourcer, helping clients across the public and private sectors run complex business processes more efficiently, creating better consumer experiences. Operating across 8 countries, Capita’s colleagues support primarily UK and European clients with people-based services underpinned by market-leading technology. We play an integral role in society – our work matters to the lives of the millions of people who rely on us every day.