Mitsubishi Heavy Industries (OTCMKTS:MHVYF) Shares Gap Down - Should You Sell?

Key Points

• Mitsubishi Heavy Industries shares fell 12.2%, opening at $22.81 versus the prior close of $24.8125, below both the 50-day and 200-day moving averages.
• Despite the sell-off, analyst sentiment remains positive: UBS upgraded the stock to “strong buy,” Sanford C. Bernstein initiated an “outperform” rating, and the consensus rating is “Buy.”
• The company recently exceeded quarterly expectations, reporting $0.24 in EPS versus $0.15 expected and revenue of $7.34 billion versus $7.09 billion forecast.

Mitsubishi Heavy Industries, Ltd. (OTCMKTS:MHVYF - Get Free Report)'s stock price gapped down before the market opened on Tuesday. The stock had previously closed at $24.8125, but opened at $22.81. Mitsubishi Heavy Industries shares last traded at $22.81, with a volume of 13,864 shares traded.

Wall Street Analyst Weigh In

Several research firms recently issued reports on MHVYF. Sanford C. Bernstein initiated coverage on Mitsubishi Heavy Industries in a report on Tuesday, September 15th. They issued an "outperform" rating on the stock. UBS Group upgraded shares of Mitsubishi Heavy Industries from a "hold" rating to a "strong-buy" rating in a research report on Thursday, August 13th. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Buy".

Mitsubishi Heavy Industries Stock Down 12.2%

The firm has a market capitalization of $76.95 billion, a P/E ratio of 30.01 and a beta of 0.52. The firm's 50-day moving average is $24.96 and its 200 day moving average is $25.72. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.98 and a current ratio of 1.26.

Mitsubishi Heavy Industries (OTCMKTS:MHVYF - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The company reported $0.24 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.15 by $0.09. Mitsubishi Heavy Industries had a return on equity of 12.97% and a net margin of 7.04%.The company had revenue of $7.34 billion for the quarter, compared to analysts' expectations of $7.09 billion.

Institutional Investors Weigh In On Mitsubishi Heavy Industries

A hedge fund recently bought a new stake in Mitsubishi Heavy Industries stock. McMillan Office Inc. purchased a new stake in Mitsubishi Heavy Industries, Ltd. (OTCMKTS:MHVYF - Free Report) in the first quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor purchased 1,000 shares of the company's stock, valued at approximately $28,000.

About Mitsubishi Heavy Industries

Mitsubishi Heavy Industries, Ltd. OTCMKTS: MHVYF is a Japan-based industrial company that develops and manufactures large-scale equipment, systems and infrastructure for customers worldwide. Its roots trace to the establishment of the Nagasaki Shipyard in 1884, while the modern company was formed in 1934 through the merger of Mitsubishi Shipbuilding and Mitsubishi Aircraft.

The company's activities include power-generation equipment and energy systems, including gas turbines, steam turbines, nuclear-power technologies and related services.

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