Morgan Advanced Materials (LON:MGAM) Hits New 12-Month Low Following Analyst Downgrade

Key Points

• Morgan Advanced Materials shares reached a new 52-week low of GBX 167 after a downgrade by Royal Bank of Canada, which lowered its price target from GBX 275 to GBX 250.
• Citigroup also cut their price target on the stock, from GBX 265 to GBX 240, while maintaining a "buy" rating.
• Insider activity saw significant share sales, with insiders selling 93,951 shares valued at approximately $20 million in the last 90 days, indicating potential concerns about the company's outlook.

Morgan Advanced Materials plc (LON:MGAM - Get Free Report)'s stock price reached a new 52-week low during trading on Friday after Royal Bank Of Canada lowered their price target on the stock from GBX 275 to GBX 250. Royal Bank Of Canada currently has an outperform rating on the stock. Morgan Advanced Materials traded as low as GBX 167 ($2.25) and last traded at GBX 196 ($2.64), with a volume of 2395195 shares trading hands. The stock had previously closed at GBX 225.50 ($3.03).

Separately, Citigroup cut their price objective on Morgan Advanced Materials from GBX 265 ($3.56) to GBX 240 ($3.23) and set a "buy" rating for the company in a research report on Friday.

Insider Buying and Selling at Morgan Advanced Materials

In related news, insider Pete Raby sold 52,587 shares of the company's stock in a transaction on Tuesday, May 13th. The shares were sold at an average price of GBX 214 ($2.88), for a total value of £112,536.18 ($151,298.98). Also, insider Richard Armitage sold 26,348 shares of the company's stock in a transaction on Friday, May 30th. The stock was sold at an average price of GBX 212 ($2.85), for a total transaction of £55,857.76 ($75,097.82). Over the last ninety days, insiders have sold 93,951 shares of company stock valued at $20,022,786. 1.69% of the stock is currently owned by corporate insiders.

Morgan Advanced Materials Stock Performance

The company's fifty day simple moving average is GBX 220.21 and its two-hundred day simple moving average is GBX 219.89. The stock has a market capitalization of £559.82 million, a P/E ratio of 8.17, a PEG ratio of 0.51 and a beta of 1.34. The company has a debt-to-equity ratio of 103.31, a quick ratio of 1.26 and a current ratio of 2.19.

Morgan Advanced Materials (LON:MGAM - Get Free Report) last announced its quarterly earnings data on Thursday, August 7th. The company reported GBX 10.80 ($0.15) earnings per share (EPS) for the quarter. Morgan Advanced Materials had a net margin of 6.17% and a return on equity of 19.02%. As a group, equities analysts forecast that Morgan Advanced Materials plc will post 32.5 EPS for the current year.

About Morgan Advanced Materials

Morgan Advanced Materials plc operates as a materials science and application engineering company primarily the United Kingdom. It serves customers in the industrial, transportation, petrochemical and chemical, energy, semiconductor and electronics, healthcare, and security and defense markets. The company was formerly known as The Morgan Crucible Company plc and changed its name to Morgan Advanced Materials plc in March 2013.