Melrose Industries (LON:MRO) Stock Price Down 16.5% – Here’s Why

Melrose Industries PLC (LON:MRO) fell 16.5% during mid-day trading on Thursday . The stock traded as low as GBX 563 ($7.26) and last traded at GBX 567.80 ($7.32). 50,016,828 shares changed hands during mid-day trading, an increase of 393% from the average session volume of 10,147,989 shares. The stock had previously closed at GBX 680 ($8.77).

Analysts Set New Price Targets

Separately, JPMorgan Chase & Co. reiterated an “overweight” rating and set a GBX 850 ($10.96) price target on shares of Melrose Industries in a report on Thursday, January 23rd. Two analysts have rated the stock with a hold rating and three have given a buy rating to the company. According to MarketBeat.com, Melrose Industries has an average rating of “Moderate Buy” and a consensus target price of GBX 640 ($8.25).

Melrose Industries Trading Down 11.3 %

The firm has a market capitalization of £7.79 billion, a P/E ratio of -203.94, a P/E/G ratio of 0.48 and a beta of 1.51. The company has a current ratio of 0.86, a quick ratio of 0.45 and a debt-to-equity ratio of 44.03. The stock has a 50 day simple moving average of GBX 593.91 and a 200-day simple moving average of GBX 529.46.

Melrose Industries (LON:MRO) last announced its earnings results on Thursday, March 6th. The company reported GBX 26.80 ($0.35) earnings per share (EPS) for the quarter. Melrose Industries had a negative net margin of 1.13% and a negative return on equity of 1.18%. On average, equities research analysts forecast that Melrose Industries PLC will post 33.9741641 EPS for the current fiscal year.

Insider Buying and Selling

In related news, insider David Lis sold 7,950 shares of the stock in a transaction that occurred on Monday, December 9th. The shares were sold at an average price of GBX 566 ($7.30), for a total value of £44,997 ($58,000.77). 1.00% of the stock is owned by insiders.

Melrose Industries Company Profile

Melrose Industries PLC, together with its subsidiaries, provides aerospace components and systems to civil and defence markets in the United Kingdom, rest of Europe, North America, and internationally. The company operates through two segments, Engines and Structures. The Engines segment offers structural engineered components; parts repair; and commercial and aftermarket contracts to engines original equipment manufacturers.