The stock of Burberry Group plc (LON:BRBY) gapped down by GBX 41.52 today and has GBX 1306.93 target or 5.00% below today’s GBX 1375.72 share price. The 8 months technical chart setup indicates high risk for the GBX 6.08 billion company. The gap down was reported on Oct, 18 by Barchart.com. If the GBX 1306.93 price target is reached, the company will be worth GBX 304.00 million less.
Gaps down are helpful for identifying a resistance level and to could also be used as a tradeable event. If traders are short the stock and it experiece gap down, then its usually advisable to hold the short for a bigger down move. Back-tests of such patterns show that two-thirds of the these patterns the stock performance worsens after the gap. The area gaps close 91% of the time, the breakaway gaps 1%, the continuation gaps 9% and the exhaustion gaps 64%. The stock decreased 9.01% or GBX 136.28 on October 18, hitting GBX 1375.72. About 8.17 million shares traded hands or 180.76% up from the average. Burberry Group plc (LON:BRBY) has risen 3.62% since March 18, 2016 and is uptrending. It has underperformed by 1.87% the S&P500.
Burberry Group plc (LON:BRBY) Ratings Coverage
Out of 27 analysts covering Burberry Group PLC (LON:BRBY), 7 rate it a “Buy”, 3 “Sell”, while 17 “Hold”. This means 26% are positive. GBX 2323 is the highest target while GBX 9 is the lowest. The GBX 1440.54 average target is 4.71% above today’s (GBX 1375.72) stock price. Burberry Group PLC has been the topic of 211 analyst reports since July 31, 2015 according to StockzIntelligence Inc. The rating was maintained by BNP Paribas with “Neutral” on Friday, January 15. As per Thursday, April 14, the company rating was maintained by Liberum Capital. The rating was reinitiated by Societe Generale on Monday, November 16 with “Hold”. The firm has “Sector Performer” rating given on Wednesday, October 28 by RBC Capital Markets. HSBC downgraded it to “Hold” rating and GBX 1500 target price in Wednesday, March 9 report. The firm has “Equal Weight” rating by Barclays Capital given on Thursday, October 8. The stock of Burberry Group plc (LON:BRBY) earned “Hold” rating by Jefferies on Friday, September 25. Jefferies maintained the stock with “Hold” rating in Friday, April 1 report. The stock of Burberry Group plc (LON:BRBY) earned “Neutral” rating by Citigroup on Wednesday, September 23. Morgan Stanley maintained it with “Equalwt/In-Line” rating and GBX 1300 target price in Thursday, January 14 report.
More recent Burberry Group plc (LON:BRBY) news were published by: Bloomberg.com which released: “Burberry Puts Trenchcoat Factory on Ice Amid Brexit Fallout” on July 14, 2016. Also Wsj.com published the news titled: “Burberry Reports Decline in Underlying First-Half Revenue” on October 18, 2016. Seekingalpha.com‘s news article titled: “How To Take Advantage Of A Global Mess? Burberry Group Plc” with publication date: September 23, 2016 was also an interesting one.
Burberry Group plc is a manufacturer, wholesaler and retailer of luxury goods. The company has a market cap of 6.08 billion GBP. The Firm also licenses third parties to manufacture and distribute products using the Burberry trademarks. It has a 19.82 P/E ratio. The Company’s divisions include retail/wholesale and licensing.
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