Morgan Advanced Materials (LON:MGAM) Stock Crosses Above Fifty Day Moving Average - Should You Sell?

Key Points

• Morgan Advanced Materials shares rose above their 50-day moving average, reaching GBX 255.50 before last trading at GBX 254.95 on heavy volume.
• Analyst sentiment remains mixed: Deutsche Bank raised its target to GBX 235 with a “hold” rating, Berenberg maintained “buy” at GBX 280, and RBC reaffirmed “sector perform” at GBX 250. The consensus rating is “Hold,” with an average target of GBX 246—below the current share price.
• The company reported quarterly EPS of GBX 10.70, while analysts expect full-year EPS of GBX 32.50. Morgan Advanced Materials has a market capitalization of about £710 million, a P/E ratio of 38.94, and relatively high debt-to-equity of 127.17.

Morgan Advanced Materials plc (LON:MGAM - Get Free Report) shares crossed above its 50 day moving average during trading on Tuesday. The stock has a 50 day moving average of GBX 254.79 and traded as high as GBX 255.50. Morgan Advanced Materials shares last traded at GBX 254.95, with a volume of 20,849,859 shares.

Analysts Set New Price Targets

Several research firms have commented on MGAM. Deutsche Bank Aktiengesellschaft raised their target price on shares of Morgan Advanced Materials from GBX 210 to GBX 235 and gave the company a "hold" rating in a report on Wednesday, August 19th. Berenberg Bank restated a "buy" rating and issued a GBX 280 target price on shares of Morgan Advanced Materials in a research report on Wednesday, September 16th. Finally, Royal Bank Of Canada reaffirmed a "sector perform" rating and set a GBX 250 price target on shares of Morgan Advanced Materials in a report on Friday, September 18th. Two investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of GBX 246.

Morgan Advanced Materials Stock Performance

The stock has a fifty day simple moving average of GBX 254.79 and a two-hundred day simple moving average of GBX 230.69. The stock has a market cap of £710.39 million, a price-to-earnings ratio of 38.94, a P/E/G ratio of 0.51 and a beta of 1.22. The company has a debt-to-equity ratio of 127.17, a quick ratio of 1.26 and a current ratio of 1.36.

Morgan Advanced Materials (LON:MGAM - Get Free Report) last posted its quarterly earnings results on Friday, August 7th. The company reported GBX 10.70 EPS for the quarter. Morgan Advanced Materials had a return on equity of 5.79% and a net margin of 1.85%. Analysts expect that Morgan Advanced Materials plc will post 32.50 EPS for the current fiscal year.

Morgan Advanced Materials Company Profile

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. Morgan Advanced Materials plc was founded in 1856 and is headquartered in Windsor, the United Kingdom.

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