Morgan Advanced Materials (LON:MGAM) Trading Down 13.1% After Analyst Downgrade

Key Points

• Morgan Advanced Materials' stock price fell by 13.1% after the Royal Bank of Canada downgraded its price target from GBX 275 to GBX 250, while still maintaining an outperform rating on the stock.
• Citigroup also lowered its price objective for the company's shares from GBX 265 to GBX 240 but set a "buy" rating for the stock.
• Insider transactions revealed significant selling activity, with insiders collectively selling 93,951 shares worth around $20 million in the last 90 days.

Morgan Advanced Materials plc (LON:MGAM - Get Free Report) was down 13.1% 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 ($2.24) and last traded at GBX 196 ($2.63). Approximately 2,395,195 shares changed hands during 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).

Separately, Citigroup decreased their price target on Morgan Advanced Materials from GBX 265 ($3.56) to GBX 240 ($3.22) and set a "buy" rating for the company in a report on Friday.

Insider Buying and Selling at Morgan Advanced Materials

In other news, insider Damien Caby sold 15,016 shares of the company's stock in a transaction on Friday, May 30th. The shares were sold at an average price of GBX 212 ($2.85), for a total value of £31,833.92 ($42,758.79). 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 ($75,027.21). Corporate insiders own 1.69% of the company's stock.

Morgan Advanced Materials Trading Up 1.7%

The firm has a market cap of £566.59 million, a P/E ratio of 8.27, a PEG ratio of 0.51 and a beta of 1.34. The company has a debt-to-equity ratio of 103.31, a current ratio of 2.19 and a quick ratio of 1.26. The stock has a 50 day moving average of GBX 219.93 and a 200 day moving average of GBX 219.40.

Morgan Advanced Materials (LON:MGAM - Get Free Report) last posted 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%. As a group, equities research analysts predict that Morgan Advanced Materials plc will post 32.5 EPS for the current year.

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.