Montanaro UK Smaller Companies (LON:MTU) Share Price Passes Below Fifty 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 stock price crossed below its fifty day moving average during trading on Friday . The stock has a fifty 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 ($1.34), with a volume of 388,374 shares changing hands.

Montanaro UK Smaller Companies Stock Down 0.3%

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 business's 50 day simple moving average is GBX 101.58 and its 200-day simple moving average is GBX 100.55. The company has a market cap of £164.47 million, a price-to-earnings ratio of 6.26 and a beta of 0.98.

Montanaro UK Smaller Companies (LON:MTU - Get Free Report) last posted its quarterly 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 net margin of 91.45% and a return on equity of 13.16%.

Insider Buying and Selling at Montanaro UK Smaller Companies

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

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