Manchester United (NYSE:MANU) Trading Down 5.8% - Should You Sell?

Key Points

• Manchester United's stock dropped 5.8%, closing at $16.81, with trading volume down 87% compared to the average.
• Despite the decline, Wall Street analysts adjusted their rating from "sell" to "hold," with an average target price of $23.00.
• In the latest earnings report, Manchester United exceeded consensus estimates with a revenue of $203.10 million, while reporting ($0.04) earnings per share.

Manchester United Ltd. (NYSE:MANU - Get Free Report) was down 5.8% during trading on Tuesday . The company traded as low as $17.07 and last traded at $16.81. Approximately 34,038 shares traded hands during trading, a decline of 87% from the average daily volume of 269,566 shares. The stock had previously closed at $17.85.

Analyst Upgrades and Downgrades

Separately, Wall Street Zen raised Manchester United from a "sell" rating to a "hold" rating in a research report on Saturday, May 31st. One equities research analyst has rated the stock with a Buy rating, Based on data from MarketBeat, the stock presently has a consensus rating of "Buy" and a consensus price target of $23.00.

Manchester United Stock Performance

The stock has a 50-day moving average of $17.49 and a 200-day moving average of $15.52. The firm has a market cap of $2.69 billion, a price-to-earnings ratio of -32.42 and a beta of 0.69. The company has a debt-to-equity ratio of 2.54, a quick ratio of 0.37 and a current ratio of 0.39.

Manchester United (NYSE:MANU - Get Free Report) last announced its earnings results on Friday, June 6th. The company reported ($0.04) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.33) by $0.29. Manchester United had a negative return on equity of 22.40% and a negative net margin of 10.09%.The business had revenue of $203.10 million for the quarter, compared to analyst estimates of $159.13 million. During the same quarter last year, the firm earned ($0.24) EPS. As a group, analysts anticipate that Manchester United Ltd. will post -0.74 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of MANU. Ariel Investments LLC grew its stake in Manchester United by 5.2% in the second quarter. Ariel Investments LLC now owns 9,024,434 shares of the company's stock valued at $160,725,000 after purchasing an additional 449,105 shares in the last quarter. Infinitum Asset Management LLC bought a new position in Manchester United in the fourth quarter valued at approximately $6,420,000. Cooperman Leon G grew its stake in Manchester United by 9.1% in the first quarter. Cooperman Leon G now owns 2,839,737 shares of the company's stock valued at $37,172,000 after purchasing an additional 238,032 shares in the last quarter. Michelson Medical Research Foundation Inc. bought a new position in Manchester United in the first quarter valued at approximately $2,618,000. Finally, Breach Inlet Capital Management LLC grew its stake in Manchester United by 28.6% in the first quarter. Breach Inlet Capital Management LLC now owns 854,946 shares of the company's stock valued at $11,191,000 after purchasing an additional 190,090 shares in the last quarter. 23.34% of the stock is currently owned by institutional investors.

About Manchester United

Manchester United plc, together with its subsidiaries, owns and operates a professional sports team in the United Kingdom. It operates Manchester United Football Club, a professional football club. The company develops marketing and sponsorship relationships with international and regional companies to leverage its brand.