Morgan Advanced Materials (LON:MGAM) Shares Down 6% - Here's Why

Key Points

• Morgan Advanced Materials shares fell by 6% on Tuesday, with stock trading at a low of GBX 188.40 ($2.51) and closing at GBX 205.33 ($2.74).
• Analysts have reduced their target prices for the stock, with Royal Bank of Canada bringing it down from GBX 275 to GBX 250, indicating a cautious outlook.
• Insider Jane Ann Lodge purchased 25,000 shares at an average of GBX 206, highlighting executive confidence despite recent stock declines.

Shares of Morgan Advanced Materials plc (LON:MGAM - Get Free Report) traded down 6% during mid-day trading on Tuesday . The company traded as low as GBX 188.40 ($2.51) and last traded at GBX 205.33 ($2.74). 1,538,804 shares traded hands during mid-day trading, an increase of 27% from the average session volume of 1,211,975 shares. The stock had previously closed at GBX 218.50 ($2.91).

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on the stock. Royal Bank Of Canada cut their target price on shares of Morgan Advanced Materials from GBX 275 to GBX 250 and set an "outperform" rating for the company in a research report on Thursday, August 7th. Deutsche Bank Aktiengesellschaft cut their target price on shares of Morgan Advanced Materials from GBX 250 to GBX 235 and set a "hold" rating for the company in a research report on Friday, September 5th. Finally, Citigroup cut their target price on shares of Morgan Advanced Materials from GBX 265 to GBX 240 and set a "buy" rating for the company in a research report on Friday, August 8th. Two investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of GBX 241.67.

Morgan Advanced Materials Stock Down 6.4%

The firm has a market cap of £568.77 million, a P/E ratio of 2,086.73, a P/E/G ratio of 0.51 and a beta of 1.34. The business's fifty day moving average price is GBX 213.56 and its two-hundred day moving average price is GBX 210.68. The company has a current ratio of 2.19, a quick ratio of 1.26 and a debt-to-equity ratio of 103.31.

Morgan Advanced Materials (LON:MGAM - Get Free Report) last released its quarterly earnings results on Thursday, August 7th. The company reported GBX 10.80 earnings per share 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 research analysts anticipate that Morgan Advanced Materials plc will post 32.5 EPS for the current year.

Insider Transactions at Morgan Advanced Materials

In other news, insider Jane Ann Lodge bought 25,000 shares of the stock in a transaction that occurred on Tuesday, September 2nd. The shares were acquired at an average cost of GBX 206 per share, for a total transaction of £51,500. Insiders own 1.20% 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.

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