Shares of Trustpilot Group plc (LON:TRST) saw a significant increase of 13.3% during midday trading on December 5, 2023, following notable insider buying activity. The stock reached a peak of GBX 150 and closed at GBX 146.40, reflecting a marked uptick from its previous closing price of GBX 129.20. During this session, trading volume soared to 8,857,204 shares, a remarkable 137% rise compared to the average daily volume of 3,740,079 shares.
The surge in share price can be attributed to several insider purchases. Specifically, Joe Hurd acquired 718 shares at an average price of GBX 140 per share, amounting to a total investment of £1,005.20. Additionally, Hanno Damm purchased 50,000 shares on December 4, also at GBX 140 per share, totaling £70,000. Furthermore, insider Zillah Byng-Thorne bought 108,116 shares on the same day at an average cost of GBX 138 per share, bringing the total value of this transaction to approximately £149,200.08.
Analyst Ratings and Market Performance
In light of these developments, several financial analysts have reassessed their ratings for Trustpilot Group. On September 16, 2023, Deutsche Bank Aktiengesellschaft raised its price target for Trustpilot shares from GBX 331 to GBX 343, maintaining a “buy” recommendation. Similarly, UBS Group reaffirmed a “buy” rating with a target price of GBX 400 on September 5. Currently, three investment analysts have rated the stock as a “Buy,” while one has issued a “Sell” rating. According to MarketBeat, Trustpilot Group holds a consensus rating of “Moderate Buy” with a target price of GBX 340.75.
As of the latest reports, Trustpilot Group’s 50-day moving average stands at GBX 197.45, while its 200-day moving average is GBX 219.77. The company’s market capitalization is approximately £584.44 million, with a price-to-earnings ratio of -1.24 and a beta of 1.02. Financial metrics indicate a debt-to-equity ratio of 41.16, a quick ratio of 1.71, and a current ratio of 1.31.
Company Overview and Stock Buyback Plan
On September 16, 2023, Trustpilot Group announced that its Board of Directors approved a stock buyback plan, allowing the company to repurchase shares through open market purchases. Such repurchase plans are often interpreted as a sign that the board believes its shares are undervalued, potentially offering a positive outlook for shareholders.
Founded in 2007, Trustpilot aims to serve as a universal symbol of trust by connecting consumers and businesses through reviews. The platform is recognized for its independent and impartial stance, helping both consumers make informed choices and businesses foster trust and growth. To date, Trustpilot has garnered over 300 million reviews and boasts 67 million monthly active users globally, achieving an impressive 127 billion annual brand impressions.
The recent insider buying and positive analyst ratings may bolster investor confidence in Trustpilot Group as it continues to evolve in the competitive landscape of online reviews and consumer feedback.
