Montanaro UK Smaller Companies (LON:MTU) Share Price Passes Below 50 Day Moving Average - Should You Sell?

Key Points

• Shares of Montanaro UK Smaller Companies (LON:MTU) have fallen below their fifty-day moving average of GBX 100.43, closing at GBX 98.71 during recent trading.
• The company reported a significant P/E ratio of -1,180.52 and has a market cap of £126.77 million, indicating potential concerns regarding profitability.
• Recent insider transactions include purchases by Catriona Hoare and Barbara Powley, suggesting some confidence among insiders despite the recent share price drop.

Shares of Montanaro UK Smaller Companies (LON:MTU - Get Free Report) crossed below its 50 day moving average during trading on Tuesday . The stock has a 50 day moving average of GBX 100.43 ($1.36) and traded as low as GBX 98.20 ($1.33). Montanaro UK Smaller Companies shares last traded at GBX 98.71 ($1.34), with a volume of 254,947 shares trading hands.

Montanaro UK Smaller Companies Price Performance

The business has a 50 day simple moving average of GBX 100.24 and a 200-day simple moving average of GBX 99.79. The company has a debt-to-equity ratio of 9.83, a quick ratio of 41.12 and a current ratio of 0.37. The firm has a market cap of £126.77 million, a price-to-earnings ratio of -1,180.52 and a beta of 0.98.

Montanaro UK Smaller Companies (LON:MTU - Get Free Report) last posted its earnings results on Wednesday, June 18th. The company reported GBX 3.28 EPS for the quarter. Montanaro UK Smaller Companies had a net margin of 91.45% and a return on equity of 13.16%.

Insiders Place Their Bets

In other Montanaro UK Smaller Companies news, insider Catriona Hoare purchased 11,920 shares of the company's stock in a transaction that occurred on Wednesday, July 23rd. The shares were acquired at an average cost of GBX 102 per share, for a total transaction of £12,158.40. Also, insider Barbara Powley purchased 10,000 shares of the company's stock in a transaction that occurred on Monday, July 7th. The shares were acquired at an average price of GBX 103 per share, for a total transaction of £10,300. Company insiders own 0.42% of the company's stock.

About Montanaro UK Smaller Companies

The Trust aims to achieve capital growth by investing in small companies listed on the London Stock Exchange or its Alternative Investment Market (AIM). It seeks relative outperformance of its benchmark, the Numis Smaller Companies 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.