Melrose Industries (LON:MRO) Shares Down 14.4% – Here’s Why

Shares of Melrose Industries PLC (LON:MRO) dropped 14.4% on Thursday . The stock traded as low as GBX 577.40 ($7.44) and last traded at GBX 582.17 ($7.50). Approximately 48,573,266 shares traded hands during mid-day trading, an increase of 380% from the average daily volume of 10,116,607 shares. The stock had previously closed at GBX 680 ($8.77).

Analyst Ratings Changes

Separately, JPMorgan Chase & Co. reiterated an “overweight” rating and issued a GBX 850 ($10.96) price target on shares of Melrose Industries in a research report on Thursday, January 23rd. Two investment analysts have rated the stock with a hold rating and three have issued a buy rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of GBX 640 ($8.25).

Melrose Industries Stock Down 14.4 %

The company has a debt-to-equity ratio of 44.03, a quick ratio of 0.45 and a current ratio of 0.86. The firm has a market capitalization of £7.52 billion, a price-to-earnings ratio of -196.89, a PEG ratio of 0.48 and a beta of 1.51. The firm has a fifty day moving average price of GBX 593.91 and a 200 day moving average price of GBX 529.46.

Melrose Industries (LON:MRO) last issued its earnings results on Thursday, March 6th. The company reported GBX 26.80 ($0.35) earnings per share for the quarter. Melrose Industries had a negative net margin of 1.13% and a negative return on equity of 1.18%. As a group, sell-side analysts expect that Melrose Industries PLC will post 33.9741641 EPS for the current fiscal year.

Insider Buying and Selling

In other news, insider David Lis sold 7,950 shares of the business’s stock in a transaction on Monday, December 9th. The stock was sold at an average price of GBX 566 ($7.30), for a total value of £44,997 ($58,000.77). 1.00% of the stock is currently owned by insiders.

About Melrose Industries

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.