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

Key Points

• Morgan Advanced Materials shares fell 13.1% during trading, closing at GBX 196 ($2.64) after reaching a low of GBX 167 ($2.25) on Thursday.
• The company reported quarterly earnings of GBX 10.80 ($0.15) per share, with a current PE ratio of 8.07 and a return on equity of 19.02%.
• Insider trading included the sale of 93,951 shares valued at over $20 million in the last quarter, indicating potential concerns among company executives.

Morgan Advanced Materials plc (LON:MGAM - Get Free Report)'s share price fell 13.1% during 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 ($2.25) and last traded at GBX 196 ($2.64). 2,395,195 shares traded hands during mid-day 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 cut their price target on Morgan Advanced Materials from GBX 265 ($3.56) to GBX 240 ($3.23) and set a "buy" rating for the company in a research note on Friday.

Insider Buying and Selling

In other Morgan Advanced Materials news, insider Pete Raby sold 52,587 shares of Morgan Advanced Materials stock in a transaction on Tuesday, May 13th. The shares were sold at an average price of GBX 214 ($2.88), for a total value of £112,536.18 ($151,298.98). Also, 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 ($75,097.82). Insiders sold 93,951 shares of company stock valued at $20,022,786 over the last 90 days. Corporate insiders own 1.69% of the company's stock.

Morgan Advanced Materials Price Performance

The company has a current ratio of 2.19, a quick ratio of 1.26 and a debt-to-equity ratio of 103.31. The firm has a market cap of £563.46 million, a price-to-earnings ratio of 8.23, a P/E/G ratio of 0.51 and a beta of 1.34. The stock's fifty day moving average price is GBX 220.21 and its 200-day moving average price is GBX 219.89.

Morgan Advanced Materials (LON:MGAM - Get Free Report) last announced its earnings results on Thursday, August 7th. The company reported GBX 10.80 ($0.15) 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 forecast 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.