Morgan Advanced Materials (LON:MGAM) Stock Price Down 13.1% - Should You Sell?

Key Points

• Morgan Advanced Materials' stock fell by 13.1% on Thursday, with shares trading as low as GBX 167 and closing at GBX 196, reflecting a significant drop from a previous closing price of GBX 225.50.
• The company has reported a debt-to-equity ratio of 103.31 and a P/E ratio of 8.07, indicating potential concerns about financial health amid the stock decline.
• In recent insider transactions, executives Richard Armitage and Damien Caby sold a combined total of 41,364 shares, raising questions about insider confidence in the company's future performance.

Morgan Advanced Materials plc (LON:MGAM - Get Free Report) shares dropped 13.1% on Thursday . The company traded as low as GBX 167 ($2.25) and last traded at GBX 196 ($2.64). Approximately 2,395,195 shares were traded during mid-day trading, an increase of 89% from the average daily volume of 1,269,546 shares. The stock had previously closed at GBX 225.50 ($3.03).

Analysts Set New Price Targets

Several research analysts have recently weighed in on MGAM shares. Royal Bank Of Canada lowered their price objective on shares of Morgan Advanced Materials from GBX 275 ($3.70) to GBX 250 ($3.36) and set an "outperform" rating for the company in a research report on Thursday. 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.

Morgan Advanced Materials Stock Up 1.3%

The firm's 50-day simple moving average is GBX 220.21 and its 200 day simple moving average is GBX 220.46. The company has a debt-to-equity ratio of 103.31, a quick ratio of 1.26 and a current ratio of 2.19. 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.

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

Insider Buying and Selling

In related news, insider Richard Armitage sold 26,348 shares of the firm's stock in a transaction dated Friday, May 30th. The shares were sold at an average price of GBX 212 ($2.85), for a total transaction of £55,857.76 ($75,128.12). 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 ($151,360.03). In the last 90 days, insiders sold 93,951 shares of company stock valued at $20,022,786. Company insiders own 1.69% of the company's stock.

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.