Zegona Communications (LON:ZEG) Sets New 1-Year High – Time to Buy?

Zegona Communications plc (LON:ZEG)’s share price reached a new 52-week high during mid-day trading on Wednesday . The company traded as high as GBX 1,735 and last traded at GBX 1,731, with a volume of 2558892 shares. The stock had previously closed at GBX 1,695.

Analyst Ratings Changes

Several research firms have recently weighed in on ZEG. Berenberg Bank reissued a “buy” rating and issued a GBX 1,350 price target on shares of Zegona Communications in a research note on Tuesday, November 25th. Canaccord Genuity Group raised their target price on shares of Zegona Communications from GBX 1,500 to GBX 2,150 and gave the stock a “buy” rating in a research note on Monday, January 12th. Three investment analysts have rated the stock with a Buy rating, According to MarketBeat.com, the stock currently has a consensus rating of “Buy” and an average target price of GBX 1,683.33.

Zegona Communications Stock Performance

The firm’s 50-day moving average price is GBX 1,489.97 and its two-hundred day moving average price is GBX 1,315.22. The stock has a market cap of £4.06 billion, a price-to-earnings ratio of 158.64 and a beta of 2.80.

Zegona Communications declared that its Board of Directors has approved a share repurchase program on Friday, December 12th that permits the company to buyback 0 outstanding shares. This buyback authorization permits the company to purchase shares of its stock through open market purchases. Shares buyback programs are usually a sign that the company’s board of directors believes its shares are undervalued.

About Zegona Communications

Zegona is a British company investing strategically across the Europe with the objective of acquiring businesses in the European TMT sector, using a “Buy-Fix-Sell” strategy to deliver attractive shareholder returns.

The first acquisition made by Zegona was of Asturian telecommunications operator Telecable in 2015. Telecable was later sold to Euskaltel in 2017, at which point Zegona acquired a 15% ownership of Euskaltel.

Zegona has subsequently increased its disclosable interest in Euskaltel to over 20%, becoming the largest shareholder in the company.