MGP Ingredients, Inc. (NASDAQ:MGPI) Receives Consensus Recommendation of "Hold" from Analysts

Key Points

• Analysts have a consensus “Hold” rating on MGP Ingredients, with three buys, two holds and one sell. The average 12-month price target is $27.25, well above the stock’s reported $12.79 price.
• MGP Ingredients beat quarterly earnings expectations, reporting $0.72 in EPS versus the $0.49 consensus estimate, but revenue fell 14.5% year over year to $124.36 million and the company posted a negative net margin.
• The company pays a quarterly dividend of $0.12, equivalent to $0.48 annually and a 3.8% yield. Insiders recently sold shares, while institutional investors and hedge funds own 77.11% of the stock.

Shares of MGP Ingredients, Inc. (NASDAQ:MGPI - Get Free Report) have received an average recommendation of "Hold" from the six research firms that are covering the company, Marketbeat Ratings reports. One analyst has rated the stock with a sell rating, two have assigned a hold rating and three have issued a buy rating on the company. The average 12 month target price among brokerages that have issued a report on the stock in the last year is $27.25.

A number of research analysts have recently issued reports on the stock. Wells Fargo & Company lifted their price objective on shares of MGP Ingredients from $21.00 to $22.00 and gave the stock an "overweight" rating in a research report on Thursday, July 30th. TD Cowen increased their target price on shares of MGP Ingredients from $18.00 to $20.00 and gave the company a "hold" rating in a research report on Thursday, July 30th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of MGP Ingredients in a research note on Friday, July 31st.

Insider Buying and Selling at MGP Ingredients

In related news, insider Paul Lux sold 33,000 shares of the company's stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $17.76, for a total transaction of $586,080.00. Following the transaction, the insider directly owned 550,458 shares of the company's stock, valued at $9,776,134.08. This represents a 5.66% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. 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 disclosure for this sale is available in the SEC filing. 31.70% of the stock is owned by insiders.

Hedge Funds Weigh In On MGP Ingredients

Several hedge funds have recently made changes to their positions in MGPI. Versant Capital Management Inc raised its stake 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 worth $91,000 after purchasing an additional 5,517 shares during the last quarter. Public Employees Retirement System of Ohio acquired a new stake in MGP Ingredients during the 2nd quarter valued at approximately $111,000. Corient Private Wealth LP acquired a new stake in MGP Ingredients during the 2nd quarter valued at approximately $270,000. Bank of America Corp DE purchased a new stake in shares of MGP Ingredients in the 2nd quarter valued at $1,857,000. Finally, Hsbc Holdings PLC acquired a new stake in shares of MGP Ingredients in the second quarter worth $806,000. 77.11% of the stock is owned by institutional investors and hedge funds.

MGP Ingredients Stock Performance

Shares of NASDAQ MGPI opened at $12.79 on Monday. The company has a debt-to-equity ratio of 0.61, a current ratio of 6.99 and a quick ratio of 1.65. The stock has a market capitalization of $273.83 million, a P/E ratio of -1.14 and a beta of 0.49. MGP Ingredients has a 1-year low of $12.50 and a 1-year high of $26.77. The business has a fifty day moving average price of $16.13 and a 200 day moving average price of $17.30.

MGP Ingredients (NASDAQ:MGPI - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The company reported $0.72 earnings per share for the quarter, beating analysts' consensus estimates of $0.49 by $0.23. The company had revenue of $124.36 million for the quarter, compared to the consensus estimate of $125.16 million. MGP Ingredients had a positive return on equity of 7.41% and a negative net margin of 48.08%.The firm's revenue for the quarter was down 14.5% compared to the same quarter last year. During the same quarter last year, the company earned $0.97 earnings per share. MGP Ingredients has set its FY 2026 guidance at 1.500-1.800 EPS. Equities research analysts expect that MGP Ingredients will post 1.65 EPS for the current fiscal year.

MGP Ingredients Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 28th. Stockholders of record on Friday, August 14th were given a $0.12 dividend. The ex-dividend date of this dividend was Friday, August 14th. This represents a $0.48 dividend on an annualized basis and a dividend yield of 3.8%. MGP Ingredients's dividend payout ratio (DPR) is presently -4.26%.

About MGP Ingredients

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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