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

Key Points

• Morgan Advanced Materials' stock price fell by 13.1% following a downgrade by the Royal Bank of Canada, reducing their price target from GBX 275 to GBX 250.
• Citigroup also lowered its target price for the stock from GBX 265 to GBX 240 while maintaining a buy rating.
• In recent insider activity, executives sold a total of 93,951 shares valued at approximately $20 million over the last three months.

Morgan Advanced Materials plc (LON:MGAM - Get Free Report)'s share price traded 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). 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 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 research note on Friday.

Insider Buying and Selling

In related news, insider Richard Armitage sold 26,348 shares of the business'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 transaction of £55,857.76 ($75,027.21). Also, insider Damien Caby sold 15,016 shares of the business'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 £31,833.92 ($42,758.79). Company insiders own 1.69% of the company's stock.

Morgan Advanced Materials Price Performance

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 company's 50 day moving average price is GBX 219.93 and its 200 day moving average price is GBX 219.40. The company has a market cap of £568.00 million, a price-to-earnings ratio of 8.29, a P/E/G ratio of 0.51 and a beta of 1.34.

Morgan Advanced Materials (LON:MGAM - Get Free Report) last released its 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 predict 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.