Melrose Industries (LON:MRO) Trading Up 9.3% - Still a Buy?

Key Points

• Melrose Industries shares jumped 9.3% to GBX 505.15, supported by exceptionally heavy trading volume—more than 30 times the average daily volume.
• Analyst sentiment remains positive overall, with a consensus “Moderate Buy” rating and an average price target of GBX 708.33. RBC maintained an “outperform” rating with an GBX 800 target, while Deutsche Bank raised its target to GBX 575 but kept a “hold” rating.
• The company reported quarterly EPS of GBX 17.80 and recently saw insider purchases totaling 63,101 shares. However, its valuation remains elevated at a P/E ratio of 39.15, while debt-to-equity stands at 71.81.

Melrose Industries PLC (LON:MRO - Get Free Report) shares rose 9.3% on Tuesday . The company traded as high as GBX 511.80 and last traded at GBX 505.15. 1,275,403,250 shares changed hands during mid-day trading, an increase of 3,043% from the average daily volume of 40,581,230 shares. The stock had previously closed at GBX 462.

Analyst Ratings Changes

Several research firms recently commented on MRO. Deutsche Bank Aktiengesellschaft increased their target price on shares of Melrose Industries from GBX 570 to GBX 575 and gave the company a "hold" rating in a research note on Wednesday, August 19th. Royal Bank Of Canada reaffirmed an "outperform" rating and set a GBX 800 target price on shares of Melrose Industries in a research report on Friday, July 31st. Two analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of GBX 708.33.

Melrose Industries Stock Performance

The firm's 50-day simple moving average is GBX 476.92 and its two-hundred day simple moving average is GBX 511.45. The company has a current ratio of 1.07, a quick ratio of 0.45 and a debt-to-equity ratio of 71.81. The stock has a market capitalization of £6.24 billion, a PE ratio of 39.15, a PEG ratio of 0.48 and a beta of 0.84.

Melrose Industries (LON:MRO - Get Free Report) last issued its earnings results on Friday, July 31st. The company reported GBX 17.80 EPS for the quarter. Melrose Industries had a return on equity of 5.63% and a net margin of 4.28%. On average, equities research analysts expect that Melrose Industries PLC will post 33.9741641 earnings per share for the current fiscal year.

Insider Buying and Selling at Melrose Industries

In other news, insider Ross McCluskey purchased 3,667 shares of the stock in a transaction that occurred on Thursday, June 25th. The stock was acquired at an average price of GBX 475 per share, with a total value of £17,418.25. Also, insider Guy Hachey bought 18,000 shares of the firm's stock in a transaction on Thursday, June 11th. The stock was acquired at an average cost of GBX 449 per share, with a total value of £80,820. Insiders purchased 63,101 shares of company stock valued at $29,444,975 in the last quarter. Company insiders own 2.59% of the company's stock.

Melrose Industries Company Profile

Melrose Industries PLC, together with its subsidiaries, provides aerospace components and systems to civil and defence markets in the United Kingdom, rest of Europe, North America, and internationally. The company operates through two segments, Engines and Structures. The Engines segment offers structural engineered components; parts repair; and commercial and aftermarket contracts to engines original equipment manufacturers. The Structures segment provides civil and defence air frames, including lightweight composite and metallic structures; and electrical distribution systems and components to airframe original equipment manufacturers.

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