Morgan Advanced Materials (LON:MGAM) Share Price Passes Below Two Hundred Day Moving Average - Time to Sell?

Key Points

• Shares briefly dipped below the 200-day moving average (200‑day MA GBX 214.79), trading as low as GBX 213 before last trading at GBX 217.50 on heavy volume (15,843,520 shares).
• Analysts have a consensus Moderate Buy with a target of GBX 236.25 (two Buy, two Hold); notable notes include Berenberg’s GBX 265 buy rating and Citigroup raising its target to GBX 235.
• Key fundamentals: market cap £601.2M, P/E 29 and high debt-to-equity (113.93); an insider (Damien Caby) bought 14,000 shares at GBX 212, though insiders own just 1.21%.

Morgan Advanced Materials plc (LON:MGAM - Get Free Report) shares passed below its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of GBX 214.79 and traded as low as GBX 213. Morgan Advanced Materials shares last traded at GBX 217.50, with a volume of 15,843,520 shares trading hands.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on MGAM. Berenberg Bank reiterated a "buy" rating and set a GBX 265 target price on shares of Morgan Advanced Materials in a report on Wednesday, March 4th. Royal Bank Of Canada reaffirmed a "sector perform" rating and set a GBX 210 price objective on shares of Morgan Advanced Materials in a research report on Wednesday, March 4th. Finally, Citigroup increased their price objective on Morgan Advanced Materials from GBX 230 to GBX 235 and gave the stock a "buy" rating in a report on Thursday, March 12th. Two research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of GBX 236.25.

Morgan Advanced Materials Stock Performance

The stock has a 50 day simple moving average of GBX 216.60 and a two-hundred day simple moving average of GBX 214.79. The stock has a market capitalization of £601.20 million, a P/E ratio of 29.00, a P/E/G ratio of 0.51 and a beta of 1.19. The company has a quick ratio of 1.26, a current ratio of 1.23 and a debt-to-equity ratio of 113.93.

Morgan Advanced Materials (LON:MGAM - Get Free Report) last issued its quarterly earnings data on Tuesday, March 3rd. The company reported GBX 15.90 EPS for the quarter. Morgan Advanced Materials had a net margin of 2.12% and a return on equity of 6.66%. On average, equities analysts forecast that Morgan Advanced Materials plc will post 32.5 EPS for the current fiscal year.

Insider Transactions at Morgan Advanced Materials

In other news, insider Damien Caby bought 14,000 shares of the company's stock in a transaction on Thursday, March 5th. The stock was purchased at an average cost of GBX 212 per share, for a total transaction of £29,680. 1.21% of the stock is currently owned by insiders.

Morgan Advanced Materials Company Profile

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. Morgan Advanced Materials plc was founded in 1856 and is headquartered in Windsor, the United Kingdom.

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