Morgan Advanced Materials (LON:MGAM) Shares Down 13.1% on Analyst Downgrade

Key Points

• Morgan Advanced Materials plc's stock saw a significant decline of 13.1% in one trading session, closing at GBX 196 ($2.64) after hitting a low of GBX 167 ($2.25).
• The company reported a quarterly earnings per share of GBX 10.80 ($0.15) and has a projected earnings per share of 32.5 for the current year according to analysts.
• Insider transactions indicated that corporate executives sold 93,951 shares worth approximately $20 million over the past three months, highlighting potential concerns regarding company performance.

Morgan Advanced Materials plc (LON:MGAM - Get Free Report) fell 13.1% on Thursday 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). 2,395,195 shares were traded during trading, an increase of 89% from the average session volume of 1,269,546 shares. The stock had previously closed at GBX 225.50 ($3.03).

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

Insider Transactions at Morgan Advanced Materials

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

Morgan Advanced Materials Stock Up 0.7%

The business's fifty day moving average price is GBX 220.21 and its 200 day moving average price is GBX 219.89. The company has a quick ratio of 1.26, a current ratio of 2.19 and a debt-to-equity ratio of 103.31. The firm has a market capitalization of £563.46 million, a PE ratio of 8.23, a PEG ratio of 0.51 and a beta of 1.34.

Morgan Advanced Materials (LON:MGAM - Get Free Report) last announced its quarterly earnings results 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%. On average, equities research analysts forecast that Morgan Advanced Materials plc will post 32.5 earnings per share for the current fiscal 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.