MGP Ingredients (NASDAQ:MGPI) Hits New 52-Week Low After Analyst Downgrade

MGP Ingredients, Inc. (NASDAQ:MGPI) reached a new 52-week low in the middle of trading on Tuesday, following a downgrade from Wells Fargo & Company. The firm reduced its price target for the stock from $58.00 to $44.00, while maintaining an overweight rating. During trading, shares of MGP Ingredients fell to as low as $37.61 before last being reported at $37.64, with a trading volume of 76,325 shares. The stock's previous closing price was $38.53.

Other analysts have also recently reassessed their ratings for MGP Ingredients. For instance, Truist Financial cut their price target from $85.00 to $75.00, issuing a “buy” rating on the stock. Similarly, Lake Street Capital downgraded MGP Ingredients from a “buy” to a “hold” rating, changing their price target from $135.00 to $75.00. Loop Capital also set their target at $75.00 while Roth MKM lowered theirs from $65.00 to $60.00 but kept a “buy” rating. Moreover, TD Cowen changed their rating from “buy” to “hold” and reduced their price target from $66.00 to $50.00. Currently, three analysts have given the stock a hold rating, while four have rated it as a buy. According to MarketBeat, MGP Ingredients holds a consensus rating of “Moderate Buy” with an average target price of $71.29.

Insider Trading Activity

In related news, Director Lori L.S. Mingus sold 7,050 shares of MGP Ingredients on November 19th at an average price of $46.03, amounting to a total of $324,511.50. After this sale, she now owns 37,373 shares valued at approximately $1,720,279.19, marking a 15.87% decrease in her holdings. This transaction has been disclosed in a filing with the Securities & Exchange Commission. Notably, 36.20% of MGP Ingredients’ shares are owned by corporate insiders.

Institutional Ownership Trends

Recent activity among institutional investors indicates changes in their positions in MGP Ingredients as well. Texas Permanent School Fund Corp increased its stake in MGP Ingredients by 22.4% during the second quarter by acquiring an additional 3,066 shares, totaling 16,746 shares worth $1,246,000. Additionally, Thoroughbred Financial Services LLC initiated a new position valued at approximately $277,000 in the same quarter. Envestnet Asset Management Inc. raised their stake by 20.3%, acquiring 19,203 more shares, bringing their total to 113,672 shares valued at $8,457,000. Massachusetts Financial Services Co. MA also entered a new position with an investment of around $22,028,000. Dimensional Fund Advisors LP raised their stake by 9.5%, now holding 790,339 shares valued at $58,801,000. Collectively, institutional investors and hedge funds own about 77.11% of MGP Ingredients’ shares.

Stock Overview

The company currently has a market capitalization of approximately $803.70 million, with a price-to-earnings ratio of 7.61 and a price/earnings growth (P/E/G) ratio of 0.74. The stock has exhibited a beta of 0.65. The fifty-day simple moving average stands at $44.55, while the 200-day average is at $67.26. MGP Ingredients has a debt-to-equity ratio of 0.31, with liquidity ratios including a quick ratio of 1.94 and a current ratio of 6.46.

Recent Earnings and Dividends

MGP Ingredients recently reported its quarterly earnings results on October 31st. The company posted an earnings per share (EPS) of $1.29, surpassing analysts’ consensus estimate of $1.27 by $0.02. The reported revenue for the quarter was $161.50 million, slightly lower than analyst expectations of $161.55 million. This quarter reflected a 23.7% decrease in revenue compared to the same period last year when the company had reported revenues of $1.34 EPS. Analysts predict an EPS of 5.57 for the current financial year.

The company has also recently announced its quarterly dividend, which was paid on November 29th. Shareholders on record as of November 15th were granted a dividend of $0.12 per share, equating to an annualized dividend of $0.48 with a yield of 1.31%. The ex-dividend date was also on November 15th. MGP Ingredients’ dividend payout ratio is currently 9.98%.

Company Overview

MGP Ingredients, Inc. and its subsidiaries focus on producing and supplying distilled spirits, branded spirits, and food ingredients, both within the United States and internationally. The company operates through three main segments: Distillery Solutions, Branded Spirits, and Ingredient Solutions.

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