Morgan Advanced Materials (LON:MGAM) Shares Down 13.1% on Analyst Downgrade

Key Points

• Morgan Advanced Materials shares plummeted 13.1% following a downgrade by Royal Bank Of Canada, lowering the price target from GBX 275 to GBX 250.
• Citigroup also adjusted their price objective on the stock, reducing it from GBX 265 to GBX 240 while maintaining a "buy" rating.
• Insiders sold a significant number of shares recently, with sales totaling approximately £87,691 over the last 90 days, and insiders collectively owning just 1.69% of the company's stock.

Morgan Advanced Materials plc (LON:MGAM - Get Free Report)'s stock price dropped 13.1% during mid-day trading 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 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).

Separately, Citigroup lowered 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 report on Friday.

Insiders Place Their Bets

In other Morgan Advanced Materials 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 ($75,027.21). Also, insider Damien Caby sold 15,016 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 £31,833.92 ($42,758.79). 1.69% of the stock is currently owned by insiders.

Morgan Advanced Materials Price Performance

The firm has a 50 day simple moving average of GBX 219.93 and a 200-day simple moving average of GBX 219.40. The company has a quick ratio of 1.26, a current ratio of 2.19 and a debt-to-equity ratio of 103.31. The company has a market cap of £568.00 million, a PE ratio of 8.29, a price-to-earnings-growth ratio of 0.51 and a beta of 1.34.

Morgan Advanced Materials (LON:MGAM - Get Free Report) last posted 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 return on equity of 19.02% and a net margin of 6.17%. As a group, 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.