Melrose Industries (LON:MRO) Trading Down 16.5% – Should You Sell?

Shares of Melrose Industries PLC (LON:MRO) dropped 16.5% on Thursday . The company traded as low as GBX 563 ($7.26) and last traded at GBX 567.80 ($7.32). Approximately 50,016,828 shares were traded during mid-day trading, an increase of 393% from the average daily volume of 10,147,989 shares. The stock had previously closed at GBX 680 ($8.77).

Wall Street Analysts Forecast Growth

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

Melrose Industries Stock Performance

The company has a current ratio of 0.86, a quick ratio of 0.45 and a debt-to-equity ratio of 44.03. The company’s 50-day moving average is GBX 593.91 and its two-hundred day moving average is GBX 529.46. The firm has a market cap of £7.79 billion, a P/E ratio of -203.94, a PEG ratio of 0.48 and a beta of 1.51.

Melrose Industries (LON:MRO) last announced its earnings results on Thursday, March 6th. The company reported GBX 26.80 ($0.35) EPS 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, equities analysts predict that Melrose Industries PLC will post 33.9741641 EPS for the current fiscal year.

Insider Activity

In related news, insider David Lis sold 7,950 shares of Melrose Industries stock in a transaction dated 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). Insiders own 1.00% of the company’s stock.

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.