Melrose Industries (LON:MRO) Trading Down 7.9% - Here's Why

Key Points

• Shares fell 7.9% to GBX 506.55 on Wednesday (intraday low GBX 498) with volume down ~77% versus the average, leaving the stock below its 50-day (GBX 556.10) and 200-day (GBX 590.63) moving averages.
• Deutsche Bank cut its target from GBX 620 to GBX 570 and set a "hold," yet the Street consensus remains a "Moderate Buy" with a consensus price target of GBX 680 (three Buys, one Hold).
• Insiders bought stock recently (Chris Grigg 17,901 shares at GBX 540; Matthew Gregory 46,702 shares at GBX 502), while Melrose shows a market cap of £6.32bn, a P/E of 17.47, ROE of 13.03%, and last quarter EPS of GBX 32.20.

Melrose Industries PLC (LON:MRO - Get Free Report) traded down 7.9% during trading on Wednesday . The company traded as low as GBX 498 and last traded at GBX 506.55. 6,811,988 shares were traded during trading, a decline of 77% from the average session volume of 29,525,754 shares. The stock had previously closed at GBX 550.29.

Analyst Upgrades and Downgrades

Separately, Deutsche Bank Aktiengesellschaft lowered their target price on Melrose Industries from GBX 620 to GBX 570 and set a "hold" rating for the company in a research report on Monday, March 23rd. Three analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of GBX 680.

Melrose Industries Stock Down 7.9%

The company has a fifty day moving average of GBX 556.10 and a two-hundred day moving average of GBX 590.63. The company has a market cap of £6.32 billion, a PE ratio of 17.47, a price-to-earnings-growth ratio of 0.48 and a beta of 0.92. The company has a debt-to-equity ratio of 67.32, a quick ratio of 0.45 and a current ratio of 0.98.

Melrose Industries (LON:MRO - Get Free Report) last released its quarterly earnings results on Friday, February 27th. The company reported GBX 32.20 earnings per share for the quarter. Melrose Industries had a return on equity of 13.03% and a net margin of 10.31%. As a group, analysts anticipate that Melrose Industries PLC will post 33.9741641 earnings per share for the current fiscal year.

Insider Buying and Selling at Melrose Industries

In related news, insider Chris Grigg purchased 17,901 shares of the firm's stock in a transaction that occurred on Wednesday, March 4th. The shares were bought at an average price of GBX 540 per share, for a total transaction of £96,665.40. Also, insider Matthew Gregory purchased 46,702 shares of the firm's stock in a transaction that occurred on Wednesday, March 25th. The shares were bought at an average price of GBX 502 per share, for a total transaction of £234,444.04. Corporate insiders own 2.56% of the company's stock.

Melrose Industries Company Profile

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. The Structures segment provides civil and defence air frames, including lightweight composite and metallic structures; and electrical distribution systems and components to airframe original equipment manufacturers.

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