Melrose Industries (LON:MRO) Trading Down 11.3% – Should You Sell?

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

Analysts Set New Price Targets

Separately, JPMorgan Chase & Co. reiterated an “overweight” rating and issued a GBX 850 ($10.98) price objective on shares of Melrose Industries in a research report on Thursday, January 23rd. Two analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. According to MarketBeat.com, Melrose Industries currently has an average rating of “Moderate Buy” and a consensus price target of GBX 640 ($8.27).

Melrose Industries Trading Down 11.7 %

The firm has a market cap of £6.35 billion, a P/E ratio of -166.14, a PEG ratio of 0.48 and a beta of 1.51. The company has a debt-to-equity ratio of 44.03, a current ratio of 0.86 and a quick ratio of 0.45. The stock has a 50 day moving average of GBX 596.44 and a 200 day moving average of GBX 531.51.

Melrose Industries (LON:MRO) last released 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, equities research analysts predict that Melrose Industries PLC will post 33.9741641 EPS for the current year.

Insider Activity

In other news, insider David Lis sold 7,950 shares of the firm’s stock in a transaction dated Monday, December 9th. The stock was sold at an average price of GBX 566 ($7.31), for a total transaction of £44,997 ($58,143.17). 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.