Melrose Industries (LON:MRO) Shares Down 11.3% – Here’s Why

Melrose Industries PLC (LON:MRO) shares dropped 11.3% on Thursday . The company traded as low as GBX 556.40 ($7.19) and last traded at GBX 603 ($7.79). Approximately 16,228,400 shares traded hands during trading, an increase of 72% from the average daily volume of 9,413,459 shares. The stock had previously closed at GBX 680 ($8.79).

Analyst Ratings Changes

Separately, JPMorgan Chase & Co. reiterated an “overweight” rating and set a GBX 850 ($10.99) price objective on shares of Melrose Industries in a research report on Thursday, January 23rd. Two research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of GBX 640 ($8.27).

Melrose Industries Price Performance

The business’s 50-day simple moving average is GBX 597.55 and its 200 day simple moving average is GBX 531.47. The company has a market capitalization of £6.35 billion, a P/E ratio of -166.14, 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.

Melrose Industries (LON:MRO) last announced its earnings results on Thursday, March 6th. The company reported GBX 26.80 ($0.35) EPS for the quarter. Melrose Industries had a negative return on equity of 1.18% and a negative net margin of 1.13%. As a group, sell-side analysts anticipate that Melrose Industries PLC will post 33.9741641 EPS for the current year.

Insider Transactions at Melrose Industries

In other news, insider David Lis sold 7,950 shares of the firm’s stock in a transaction dated Monday, December 9th. The shares were sold at an average price of GBX 566 ($7.32), for a total transaction of £44,997 ($58,158.20). Company insiders own 1.00% of the company’s stock.

About Melrose Industries

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.