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

Key Points

• Morgan Advanced Materials shares fell 13.1% on Thursday, trading as low as GBX 167 ($2.23) after closing at GBX 225.50 ($3.01).
• The company reported GBX 10.80 ($0.14) earnings per share for the last quarter and has a return on equity of 19.02%.
• Insiders sold a total of 93,951 shares valued at approximately $20 million over the past 90 days, indicating insider confidence in the company's future prospects.

Morgan Advanced Materials plc (LON:MGAM - Get Free Report) was down 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). 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 target price on shares of Morgan Advanced Materials from GBX 265 ($3.56) to GBX 240 ($3.23) and set a "buy" rating on the stock in a research note on Friday.

Insider Buying and Selling at Morgan Advanced Materials

In other news, insider Pete Raby sold 52,587 shares of the business's stock in a transaction dated Tuesday, May 13th. The shares were sold at an average price of GBX 214 ($2.88), for a total transaction of £112,536.18 ($151,298.98). Also, 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 ($75,097.82). Over the last ninety days, insiders have sold 93,951 shares of company stock valued at $20,022,786. 1.69% of the stock is currently owned by corporate insiders.

Morgan Advanced Materials Stock Up 0.7%

The stock has a market capitalization of £563.46 million, a price-to-earnings ratio of 8.23, a price-to-earnings-growth ratio of 0.51 and a beta of 1.34. The firm has a 50-day moving average of GBX 220.21 and a two-hundred day moving average of GBX 219.89. The company has a quick ratio of 1.26, a current ratio of 2.19 and a debt-to-equity ratio of 103.31.

Morgan Advanced Materials (LON:MGAM - Get Free Report) last released its quarterly earnings data 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, sell-side analysts anticipate that Morgan Advanced Materials plc will post 32.5 earnings per share for the current 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.