Montanaro European Smaller (LON:MTE) Shares Cross Below Fifty Day Moving Average - Time to Sell?

Key Points

• Shares crossed below their 50‑day moving average: Montanaro European Smaller (LON:MTE) fell below its 50‑day MA of GBX 161.28, trading as low as GBX 146 and last at GBX 146.24 on volume of 220,458.
• Mixed fundamentals with high leverage: The trust has a market cap of £190.87m and a P/E of 8.16, but reports a high debt‑to‑equity ratio of 7.02 and weak liquidity (quick ratio 0.12, current ratio 0.27).
• Investment objective and scale: The trust targets capital growth from small European quoted companies to outperform the MSCI Europe SmallCap (ex‑UK) benchmark, and Montanaro manages over £3.5bn of assets.

Montanaro European Smaller (LON:MTE - )'s stock price crossed below its 50 day moving average during trading on Friday . The stock has a 50 day moving average of GBX 161.28 and traded as low as GBX 146. Montanaro European Smaller shares last traded at GBX 146.24, with a volume of 220,458 shares trading hands.

Montanaro European Smaller Price Performance

The stock has a market capitalization of £190.87 million, a price-to-earnings ratio of 8.16 and a beta of 1.43. The company has a debt-to-equity ratio of 7.02, a quick ratio of 0.12 and a current ratio of 0.27. The company has a 50-day moving average of GBX 161.28 and a 200-day moving average of GBX 165.57.

Montanaro European Smaller Company Profile

The trust aims to achieve capital growth by investing in small European quoted companies. It seeks to achieve capital growth in excess of its benchmark, the MSCI Europe SmallCap (ex-UK) Index. Montanaro Asset Management was founded by Charles Montanaro in 1991 with a vision to bring a different approach to SmallCap investing. We think of ourselves as an Oasis in the City. We ignore market noise and focus on identifying the highest quality businesses that we can own for the long-term. Almost 30 years later, we manage over £3.5bn (€4bn) on behalf of our clients.

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