Melrose Industries (LON:MRO) Shares Down 18.2% – Should You Sell?

Melrose Industries PLC (LON:MRO) traded down 18.2% during mid-day trading on Thursday . The company traded as low as GBX 556.40 ($7.17) and last traded at GBX 556.40 ($7.17). 16,050,553 shares changed hands during trading, an increase of 71% from the average session volume of 9,409,593 shares. The stock had previously closed at GBX 680 ($8.77).

Wall Street Analyst Weigh In

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

Melrose Industries Stock Performance

The stock has a market cap of £7.79 billion, a price-to-earnings ratio of -203.94, a price-to-earnings-growth ratio of 0.48 and a beta of 1.51. The company has a quick ratio of 0.45, a current ratio of 0.86 and a debt-to-equity ratio of 44.03. The company’s 50-day simple moving average is GBX 593.91 and its 200-day simple moving average is GBX 529.46.

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 return on equity of 1.18% and a negative net margin of 1.13%. Analysts predict that Melrose Industries PLC will post 33.9741641 EPS for the current fiscal year.

Insider Transactions at Melrose Industries

In other news, insider David Lis sold 7,950 shares of the firm’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.