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

Melrose Industries PLC (LON:MRO) fell 11.3% during 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 traded hands during 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. 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 company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of GBX 640 ($8.27).

Melrose Industries Stock Performance

The stock’s 50-day moving average price is GBX 597.55 and its 200-day moving average price is GBX 531.47. The company has a current ratio of 0.86, a quick ratio of 0.45 and a debt-to-equity ratio of 44.03. 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.

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%. As a group, equities analysts expect that Melrose Industries PLC will post 33.9741641 EPS for the current year.

Insider Buying and Selling

In related news, insider David Lis sold 7,950 shares of the stock in a transaction dated 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). Corporate 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.