Melrose Industries (LON:MRO) Trading Down 14.4% – What’s Next?

Melrose Industries PLC (LON:MRO)’s share price fell 14.4% during trading on Thursday . The stock traded as low as GBX 577.40 ($7.46) and last traded at GBX 582.17 ($7.52). 48,573,266 shares changed hands during trading, an increase of 380% from the average session volume of 10,116,607 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) target price on shares of Melrose Industries in a research note on Thursday, January 23rd. Two equities research analysts have rated the stock with a hold rating and three have given a buy rating to the company’s stock. According to data from MarketBeat.com, Melrose Industries has an average rating of “Moderate Buy” and a consensus target price of GBX 640 ($8.27).

Melrose Industries Price Performance

The company has a market capitalization of £6.35 billion, a PE ratio of -166.14, a price-to-earnings-growth ratio of 0.48 and a beta of 1.51. 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 firm’s 50-day moving average is GBX 597.55 and its 200-day moving average is GBX 531.47.

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

Insiders Place Their Bets

In related news, insider David Lis sold 7,950 shares of the stock in a transaction dated Monday, December 9th. The stock was sold at an average price of GBX 566 ($7.32), for a total transaction of £44,997 ($58,158.20). 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.