Wells Fargo & Company Issues Pessimistic Forecast for MGP Ingredients (NASDAQ:MGPI) Stock Price

Key Points

• Wells Fargo cut MGP Ingredients’ price target to $17 from $22 while maintaining an “overweight” rating, implying 33.18% upside from the prior close.
• MGPI shares traded near $12.77, close to their $12.42 one-year low, with the stock down from its 50-day and 200-day moving averages. Analysts’ consensus rating is “Hold,” with an average price target of $26.
• The company beat quarterly EPS estimates ($0.72 versus $0.49) but reported a 14.5% year-over-year revenue decline and a negative net margin; two insiders also recently sold shares.

MGP Ingredients (NASDAQ:MGPI - Get Free Report) had its price target dropped by Wells Fargo & Company from $22.00 to $17.00 in a research note issued to investors on Monday, Benzinga reports. The brokerage presently has an "overweight" rating on the stock. Wells Fargo & Company's price objective would indicate a potential upside of 33.18% from the company's previous close.

MGPI has been the topic of a number of other reports. Weiss Ratings restated a "sell (d-)" rating on shares of MGP Ingredients in a report on Friday, July 31st. TD Cowen increased their price target on MGP Ingredients from $18.00 to $20.00 and gave the company a "hold" rating in a research report on Thursday, July 30th. Three equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $26.00.

MGP Ingredients Stock Performance

MGP Ingredients stock traded down $0.03 during mid-day trading on Monday, hitting $12.77. 24,071 shares of the company's stock traded hands, compared to its average volume of 242,820. The firm has a 50 day moving average price of $16.13 and a 200 day moving average price of $17.30. The company has a quick ratio of 1.65, a current ratio of 6.99 and a debt-to-equity ratio of 0.61. The company has a market cap of $273.30 million, a PE ratio of -1.13 and a beta of 0.49. MGP Ingredients has a one year low of $12.42 and a one year high of $26.77.

MGP Ingredients (NASDAQ:MGPI - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The company reported $0.72 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.49 by $0.23. MGP Ingredients had a positive return on equity of 7.41% and a negative net margin of 48.08%.The company had revenue of $124.36 million during the quarter, compared to analyst estimates of $125.16 million. During the same quarter in the previous year, the firm posted $0.97 EPS. The firm's quarterly revenue was down 14.5% on a year-over-year basis. MGP Ingredients has set its FY 2026 guidance at 1.500-1.800 EPS. On average, equities analysts forecast that MGP Ingredients will post 1.65 EPS for the current year.

Insiders Place Their Bets

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

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in MGPI. Bank of America Corp DE purchased a new position in MGP Ingredients in the second quarter valued at about $1,857,000. Pacer Advisors Inc. purchased a new stake in shares of MGP Ingredients during the 4th quarter worth about $2,278,000. BlackRock Inc. acquired a new stake in shares of MGP Ingredients during the 2nd quarter valued at about $22,258,000. PDT Partners LLC acquired a new stake in shares of MGP Ingredients during the 2nd quarter valued at about $1,582,000. Finally, Arrowstreet Capital Limited Partnership bought a new stake in shares of MGP Ingredients in the 1st quarter valued at approximately $2,725,000. Institutional investors and hedge funds own 77.11% of the company's stock.

MGP Ingredients Company Profile

MGP Ingredients, Inc NASDAQ: MGPI is a food and beverage company headquartered in Atchison, Kansas. The company develops and produces distilled spirits, specialty wheat proteins, and specialty starches for consumer brands, food manufacturers, and other commercial customers.

Through its branded spirits business, MGP offers a portfolio of bourbon, rye whiskey, American whiskey, vodka, gin, and other distilled products. Its brands include Lux Row Distillers' Ezra Brooks, Daviess County, and Yellowstone Bourbon, as well as Remus Repeal Reserve.

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