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

Melrose Industries PLC (LON:MRO) traded down 16.5% during trading on Thursday . The company traded as low as GBX 563 ($7.28) and last traded at GBX 567.80 ($7.34). 50,016,828 shares changed hands during trading, an increase of 393% from the average session volume of 10,147,989 shares. The stock had previously closed at GBX 680 ($8.79).

Wall Street Analyst Weigh In

Separately, JPMorgan Chase & Co. restated an “overweight” rating and issued a GBX 850 ($10.99) price target 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 issued a buy rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of GBX 640 ($8.27).

Melrose Industries Stock Performance

The company has a quick ratio of 0.45, a current ratio of 0.86 and a debt-to-equity ratio of 44.03. The stock has a market cap of £6.35 billion, a price-to-earnings ratio of -166.14, a price-to-earnings-growth ratio of 0.48 and a beta of 1.51. The company’s 50-day simple moving average is GBX 597.55 and its 200-day simple moving average is GBX 531.47.

Melrose Industries (LON:MRO) last posted its quarterly 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%. Analysts predict 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 firm’s stock in a transaction that occurred on Monday, December 9th. The shares were sold at an average price of GBX 566 ($7.32), for a total value of £44,997 ($58,158.20). Company insiders own 1.00% of the company’s stock.

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.