Melrose Industries (LON:MRO) Stock Price Down 16.5% – Here’s Why

Shares of Melrose Industries PLC (LON:MRO) traded down 16.5% on Thursday . The company traded as low as GBX 563 ($7.28) and last traded at GBX 567.80 ($7.34). 50,016,828 shares traded hands during trading, an increase of 393% from the average session volume of 10,147,989 shares. The stock had previously closed at GBX 680 ($8.79).

Wall Street Analysts Forecast Growth

Separately, JPMorgan Chase & Co. reaffirmed an “overweight” rating and set a GBX 850 ($10.99) price target on shares of Melrose Industries in a report on Thursday, January 23rd. Two equities research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of GBX 640 ($8.27).

Melrose Industries Price Performance

The company has a 50 day moving average price of GBX 597.55 and a 200 day moving average price of GBX 531.47. The company has a market capitalization of £6.35 billion, a price-to-earnings ratio of -166.14, a PEG ratio of 0.48 and a beta of 1.51. The company has a current ratio of 0.86, a quick ratio of 0.45 and a debt-to-equity ratio of 44.03.

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

Insider Activity

In other news, insider David Lis sold 7,950 shares of Melrose Industries stock in a transaction on Monday, December 9th. The stock was sold at an average price of GBX 566 ($7.32), for a total value of £44,997 ($58,158.20). Insiders own 1.00% 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.