MGP Ingredients (NASDAQ:MGPI) Price Target Raised to $20.00

Key Points

• Wells Fargo raised MGP Ingredients’ price target from $17 to $20 and maintained an “overweight” rating, implying 15.9% upside from the reported $17.26 share price.
• Analyst sentiment remains mixed: MGP has a consensus “Hold” rating and an average price target of $26.25, based on three Buys, two Holds and one Sell.
• The company beat quarterly EPS estimates, reporting $0.39 versus $0.32 expected, but revenue fell 9.9% year over year to $117.91 million and net margin was negative 48.08%.

MGP Ingredients (NASDAQ:MGPI - Get Free Report) had its target price upped by equities research analysts at Wells Fargo & Company from $17.00 to $20.00 in a report issued on Thursday, Benzinga reports. The brokerage presently has an "overweight" rating on the stock. Wells Fargo & Company's target price suggests a potential upside of 15.90% from the company's current price.

Several other research firms have also issued reports on MGPI. Weiss Ratings restated a "sell (d-)" rating on shares of MGP Ingredients in a report on Friday, July 31st. Roth Capital lowered their price objective on shares of MGP Ingredients from $32.00 to $30.00 and set a "buy" rating on the stock in a research report on Friday, October 16th. Finally, TD Cowen lifted their price objective on MGP Ingredients from $18.00 to $20.00 and gave the stock a "hold" rating in a report on Thursday, July 30th. Three research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, MGP Ingredients currently has a consensus rating of "Hold" and an average price target of $26.25.

MGP Ingredients Price Performance

Shares of MGPI opened at $17.26 on Thursday. The stock has a 50 day simple moving average of $15.03 and a 200 day simple moving average of $18.40. The company has a debt-to-equity ratio of 0.61, a quick ratio of 1.65 and a current ratio of 6.99. The firm has a market capitalization of $369.45 million, a PE ratio of -1.50 and a beta of 0.49. MGP Ingredients has a 52-week low of $12.42 and a 52-week high of $26.62.

MGP Ingredients (NASDAQ:MGPI - Get Free Report) last issued its earnings results on Wednesday, October 28th. The company reported $0.39 earnings per share for the quarter, topping analysts' consensus estimates of $0.32 by $0.07. The business had revenue of $117.91 million for the quarter, compared to the consensus estimate of $119.70 million. MGP Ingredients had a negative net margin of 48.08% and a positive return on equity of 7.41%. The firm's revenue for the quarter was down 9.9% on a year-over-year basis. During the same period in the previous year, the company earned $0.85 earnings per share. Sell-side analysts predict that MGP Ingredients will post 1.65 EPS for the current fiscal year.

Insider Activity at MGP Ingredients

In other news, insider Leslie Lux sold 27,731 shares of the stock in a transaction on Wednesday, September 16th. The shares were sold at an average price of $14.40, for a total value of $399,326.40. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Paul Lux sold 33,000 shares of the firm's stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $17.76, for a total transaction of $586,080.00. Following the sale, the insider owned 550,458 shares in the company, valued at approximately $9,776,134.08. This trade represents a 5.66% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 31.70% of the company's stock.

Institutional Trading of MGP Ingredients

Institutional investors have recently added to or reduced their stakes in the business. Legal & General Group Plc bought a new stake in MGP Ingredients during the 2nd quarter valued at $28,000. GAMMA Investing LLC boosted its position in MGP Ingredients by 334.0% during the 3rd quarter. GAMMA Investing LLC now owns 2,439 shares of the company's stock valued at $32,000 after buying an additional 1,877 shares during the period. Global Retirement Partners LLC bought a new stake in MGP Ingredients in the 2nd quarter worth $55,000. Public Employees Retirement System of Ohio bought a new stake in MGP Ingredients in the 2nd quarter worth $111,000. Finally, Versant Capital Management Inc increased its position in shares of MGP Ingredients by 398.6% in the third quarter. Versant Capital Management Inc now owns 6,901 shares of the company's stock valued at $91,000 after acquiring an additional 5,517 shares during the period. 77.11% of the stock is currently owned by hedge funds and other institutional investors.

MGP Ingredients Company Profile

MGP Ingredients, Inc NASDAQ: MGPI is a producer and marketer of distilled spirits and specialty food and beverage ingredients. The company operates distilleries and processing facilities that manufacture bourbon, rye whiskey, vodka, gin, tequila and other distilled products, as well as grain-based alcohol and related ingredients.

The company serves customers through both its Distilling Solutions and Branded Spirits businesses. Its branded portfolio includes products such as Ezra Brooks, Yellowstone, Daviess County, El Mayor and Everclear, while its distilling operations supply spirits and alcohol to beverage companies and other commercial customers.

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