Morgan Advanced Materials (LON:MGAM) Trading Down 10.9% After Analyst Downgrade

Key Points

• Morgan Advanced Materials plc experienced a significant decline, trading down 10.9% on Thursday, reaching a low of GBX 167 ($2.23) and closing at GBX 201 ($2.69).
• The company's debt-to-equity ratio stands at 103.31, with a price-to-earnings (P/E) ratio of 8.07 and a projected earnings per share (EPS) of 32.5 for the current year.
• Recent insider transactions indicate that significant selling occurred, with 93,951 shares sold by insiders over the last three months, totaling around $20 million.

Morgan Advanced Materials plc (LON:MGAM - Get Free Report) shares were down 10.9% during mid-day trading 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 ($2.24) and last traded at GBX 201 ($2.70). Approximately 5,529,809 shares traded hands during trading, an increase of 329% from the average daily volume of 1,290,168 shares. The stock had previously closed at GBX 225.50 ($3.03).

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

Insiders Place Their Bets

In other news, insider Damien Caby sold 15,016 shares of Morgan Advanced Materials stock in a transaction that occurred on Friday, May 30th. The stock was 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 Morgan Advanced Materials stock in a transaction that occurred on Friday, May 30th. The stock was sold at an average price of GBX 212 ($2.85), for a total value of £55,857.76 ($75,027.21). In the last 90 days, insiders sold 93,951 shares of company stock worth $20,022,786. 1.69% of the stock is currently owned by company insiders.

Morgan Advanced Materials Trading Down 0.5%

The stock has a market capitalization of £557.00 million, a P/E ratio of 8.13, a price-to-earnings-growth ratio of 0.51 and a beta of 1.34. The stock has a 50-day moving average price of GBX 219.93 and a two-hundred day moving average price of GBX 219.40. The company has a debt-to-equity ratio of 103.31, a quick ratio of 1.26 and a current ratio of 2.19.

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