Auction Technology Group (LON:ATG) Shares Up 12.6% – Should You Buy?

Auction Technology Group plc (LON:ATG)’s share price rose 12.6% on Saturday . The stock traded as high as GBX 370 and last traded at GBX 362. Approximately 1,920,300 shares changed hands during trading, an increase of 100% from the average daily volume of 958,306 shares. The stock had previously closed at GBX 321.50.

Key Auction Technology Group News

Here are the key news stories impacting Auction Technology Group this week:

• Positive Sentiment: Reports that FitzWalter has increased its takeover bid for ATG — this directly drove buying as investors expect a higher, near-term cash exit for shareholders. Auction Technology shares rise as FitzWalter increases takeover bid
• Positive Sentiment: Coverage saying FitzWalter is considering an increased takeover offer — market participants interpret this as rising takeover probability and potential upward pressure on the final deal price. Auction Technology surges as FitzWalter considers increased takeover offer
• Positive Sentiment: News that a shareholder indicated a higher offer proposal — this kind of signalling often lifts the stock as traders front-run a confirmed higher bid. Auction Technology Shares Jump After Shareholder Indicates Higher Offer Proposal
• Positive Sentiment: International outlets report the stock “soared” after the increased offer was publicised — reinforcing that the market reaction is broad-based and liquidity has picked up. Auction Technology Group stock soars after increased takeover offer
• Positive Sentiment: Reports quantify the raised buyout value (headline of ~$658m) — a concrete higher valuation boosts takeover-premium expectations for remaining shareholders. FitzWalter Capital raises buyout bid for UK’s Auction Technology to $658 million
• Neutral Sentiment: Other reports note this is at least the twelfth bid iteration (one article cites ~£491m for a bid) — indicates a drawn-out negotiation with differing reported figures; final terms and timetable remain uncertain. Auction Technology Group’s biggest shareholder tables twelfth bid worth £491m
• Negative Sentiment: Underlying fundamentals remain mixed (negative P/E, below-1 current ratio) — if the takeover stalls or the offer is below some investors’ expectations, those fundamentals could limit upside and increase downside risk.

Analyst Ratings Changes

A number of research firms recently commented on ATG. JPMorgan Chase & Co. lifted their price objective on Auction Technology Group from GBX 690 to GBX 695 and gave the stock an “overweight” rating in a research report on Friday, November 28th. Peel Hunt cut their price objective on shares of Auction Technology Group from GBX 730 to GBX 460 and set a “buy” rating for the company in a research report on Tuesday, December 2nd. Royal Bank Of Canada lowered their target price on shares of Auction Technology Group from GBX 415 to GBX 315 and set a “sector perform” rating for the company in a research note on Tuesday, December 2nd. Finally, Berenberg Bank reduced their target price on Auction Technology Group from GBX 560 to GBX 460 and set a “buy” rating on the stock in a research report on Thursday, November 27th. Four equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of GBX 549.

Auction Technology Group Stock Up 12.6%

The company has a current ratio of 0.62, a quick ratio of 1.36 and a debt-to-equity ratio of 18.16. The firm has a market capitalization of £438.34 million, a price-to-earnings ratio of -3.06 and a beta of 1.29. The firm has a 50 day moving average price of GBX 291.14 and a two-hundred day moving average price of GBX 339.95.

Auction Technology Group Company Profile

Auction Technology Group plc?(“ATG”) is the operator of the world’s leading marketplaces and auction services for curated online auctions, seamlessly connecting bidders from around the world to over 3,800 trusted auction houses across two major sectors: Industrial & Commercial (“I&C”) and Art & Antiques (“A&A”).

The Group powers eight online marketplaces and listing sites using its proprietary auction platform technology, hosting in excess of 70,000 live and timed auctions each year. ATG?has been supporting the auction industry since 1971 and the Group has offices in the UK, US and Germany.