Melrose Industries (LON:MRO) Trading Down 14.6% – Time to Sell?

Shares of Melrose Industries PLC (LON:MRO) dropped 14.6% during mid-day trading on Thursday . The stock traded as low as GBX 577.40 ($7.44) and last traded at GBX 581 ($7.49). Approximately 49,456,539 shares traded hands during mid-day trading, an increase of 388% from the average daily volume of 10,135,810 shares. The stock had previously closed at GBX 680 ($8.77).

Wall Street Analyst Weigh In

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

Melrose Industries Stock Down 11.3 %

The company has a market capitalization of £7.79 billion, a price-to-earnings ratio of -203.94, a price-to-earnings-growth ratio of 0.48 and a beta of 1.51. The firm’s 50 day moving average price is GBX 593.91 and its two-hundred day moving average price is GBX 529.46. 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 net margin of 1.13% and a negative return on equity of 1.18%. Sell-side analysts anticipate that Melrose Industries PLC will post 33.9741641 earnings per share for the current fiscal year.

Insider Buying and Selling

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

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.