MGP Ingredients, Inc. (NASDAQ:MGPI) Stock Has Average Target Price of $26.25

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 $26.25.
• MGP Ingredients’ quarterly EPS of $0.39 beat the $0.32 consensus estimate, but revenue fell 9.9% year over year to $117.91 million and missed expectations, while EPS declined from $0.85 a year earlier.
• The company declared a $0.12 quarterly dividend, equal to $0.48 annually and an approximately 2.8% yield; the ex-dividend date is November 13 and payment is scheduled for November 27.

Shares of MGP Ingredients, Inc. (NASDAQ:MGPI - Get Free Report) have received an average rating of "Hold" from the six brokerages that are presently covering the company, Marketbeat.com reports. One investment analyst has rated the stock with a sell rating, two have issued a hold rating and three have assigned a buy rating to the company. The average 1-year price target among analysts that have covered the stock in the last year is $26.25.

MGPI has been the topic of several research reports. Roth Capital dropped 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 note on Friday, October 16th. Weiss Ratings reiterated a "sell (d-)" rating on shares of MGP Ingredients in a report on Friday, July 31st. TD Cowen increased their target price on MGP Ingredients from $18.00 to $20.00 and gave the stock a "hold" rating in a research note on Thursday, July 30th. Finally, Wells Fargo & Company raised their price target on MGP Ingredients from $17.00 to $20.00 and gave the company an "overweight" rating in a report on Thursday.

Insider Activity at MGP Ingredients

In other news, insider Paul Lux sold 33,000 shares of the stock in a transaction that occurred 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 $9,776,134.08. This represents a 5.66% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Leslie Lux sold 27,731 shares of the firm's stock in a transaction that occurred on Wednesday, September 16th. The shares were sold at an average price of $14.40, for a total transaction of $399,326.40. The disclosure for this sale is available in the SEC filing. Corporate insiders own 31.70% of the company's stock.

Hedge Funds Weigh In On MGP Ingredients

Several hedge funds and other institutional investors have recently bought and sold shares of MGPI. Bank of America Corp DE bought a new position in MGP Ingredients during the second quarter valued at approximately $1,857,000. BlackRock Inc. bought a new stake in MGP Ingredients in the 2nd quarter worth approximately $22,258,000. PDT Partners LLC purchased a new stake in MGP Ingredients during the 2nd quarter valued at $1,582,000. Arrowstreet Capital Limited Partnership bought a new position in shares of MGP Ingredients during the 1st quarter valued at $2,725,000. Finally, Tieton Capital Management LLC purchased a new position in shares of MGP Ingredients in the 2nd quarter worth $11,252,000. Institutional investors own 77.11% of the company's stock.

MGP Ingredients Stock Performance

MGP Ingredients stock opened at $17.21 on Friday. MGP Ingredients has a fifty-two week low of $12.42 and a fifty-two week high of $26.62. The stock's 50 day simple moving average is $15.02 and its two-hundred day simple moving average is $18.36. The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.65 and a current ratio of 6.91. The stock has a market cap of $368.47 million, a price-to-earnings ratio of -1.48 and a beta of 0.49.

MGP Ingredients (NASDAQ:MGPI - Get Free Report) last announced its earnings results on Wednesday, October 28th. The company reported $0.39 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.32 by $0.07. MGP Ingredients had a positive return on equity of 6.58% and a negative net margin of 51.12%. The firm had revenue of $117.91 million during the quarter, compared to analyst estimates of $119.70 million. During the same quarter in the prior year, the company earned $0.85 EPS. The business's revenue was down 9.9% compared to the same quarter last year. As a group, analysts expect that MGP Ingredients will post 1.65 earnings per share for the current fiscal year.

MGP Ingredients Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, November 27th. Shareholders of record on Friday, November 13th will be issued a $0.12 dividend. The ex-dividend date of this dividend is Friday, November 13th. This represents a $0.48 annualized dividend and a yield of 2.8%. MGP Ingredients's payout ratio is -4.26%.

Trending Headlines about MGP Ingredients

Here are the key news stories impacting MGP Ingredients this week:

• Positive Sentiment: Wells Fargo raised its price target from $17 to $20 and upgraded MGPI to “overweight,” implying roughly 16% upside from the referenced price. The upgrade provides a meaningful bullish catalyst and suggests the firm sees potential for improved performance. Wells Fargo analyst recommendations
• Positive Sentiment: Third-quarter adjusted earnings exceeded expectations. MGPI reported $0.39 per share, ahead of analyst estimates ranging from $0.32 to $0.34. The earnings beat may be supporting the stock despite weaker year-over-year results. MGP Q3 earnings report
• Positive Sentiment: The company declared a quarterly dividend of $0.12 per share, or $0.48 annualized, representing an indicated yield of approximately 2.9%. The dividend may appeal to income-focused investors, with November 13 as the ex-dividend date and November 27 as the payment date.
• Neutral Sentiment: Management’s Q3 earnings call and related investor materials may provide additional detail on demand, margins, and the company’s outlook, but the supplied reports do not include specific new guidance. MGP Q3 earnings call transcript
• Negative Sentiment: Revenue fell 9.9% year over year to $117.91 million and missed the $119.70 million consensus estimate. EPS also declined from $0.85 in the comparable quarter, while the company reported a negative net margin. These trends indicate continuing pressure on sales and profitability. MGP revenue miss report

About MGP Ingredients

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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