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

Key Points

• The share price of Montanaro UK Smaller Companies (LON:MTU) has fallen below its fifty day moving average, trading at GBX 98.87 ($1.34) after hitting a low of GBX 98.25 ($1.33).
• Despite a strong net margin of 91.45% and a price-to-earnings ratio of 6.26, the company's debt-to-equity ratio stands at 9.83, indicating significant leverage.
• Recent insider transactions show confidence in the company, with insiders purchasing shares at an average cost of around GBX 102-103, although corporate insiders only own 0.21% of the company's stock.

Montanaro UK Smaller Companies (LON:MTU - Get Free Report)'s share price passed below its 50-day moving average during trading on Friday . The stock has a 50-day moving average of GBX 101.58 ($1.37) and traded as low as GBX 98.25 ($1.33). Montanaro UK Smaller Companies shares last traded at GBX 98.87 ($1.33), with a volume of 388,374 shares traded.

Montanaro UK Smaller Companies Stock Up 0.3%

The company has a debt-to-equity ratio of 9.83, a current ratio of 0.37 and a quick ratio of 41.12. The stock has a market capitalization of £163.82 million, a PE ratio of 6.24 and a beta of 0.98. The company has a 50 day moving average price of GBX 101.33 and a 200-day moving average price of GBX 100.42.

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

Insider Activity at Montanaro UK Smaller Companies

In other news, insider Barbara Powley purchased 10,000 shares of the company's stock in a transaction that occurred on Monday, July 7th. The shares were bought at an average cost of GBX 103 per share, for a total transaction of £10,300. Also, insider Catriona Hoare purchased 11,920 shares of the company's stock in a transaction that occurred on Wednesday, July 23rd. The shares were purchased at an average price of GBX 102 per share, for a total transaction of £12,158.40. Insiders own 0.21% 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.