MGP Ingredients, Inc. (NASDAQ:MGPI) Announces Quarterly Dividend of $0.12

Key Points

• MGP Ingredients declared a quarterly dividend of $0.12 per share, payable November 27 to shareholders of record November 13. The annualized dividend is $0.48, yielding approximately 2.9%.
• The dividend appears well covered, with a current payout ratio of 17.5% and an expected future payout ratio of 24.7% based on projected earnings.
• The company beat quarterly EPS estimates ($0.39 versus $0.32), but revenue fell 9.9% year over year to $117.91 million. Analysts’ consensus rating is Hold, with an average price target of $25.50.

MGP Ingredients, Inc. (NASDAQ:MGPI - Get Free Report) announced a quarterly dividend on Wednesday, October 28th. Investors of record on Friday, November 13th will be given a dividend of $0.12 per share on Friday, November 27th. This represents a $0.48 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date is Friday, November 13th.

MGP Ingredients has a payout ratio of 17.5% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect MGP Ingredients to earn $1.94 per share next year, which means the company should continue to be able to cover its $0.48 annual dividend with an expected future payout ratio of 24.7%.

MGP Ingredients Stock Up 9.2%

Shares of MGP Ingredients stock opened at $16.73 on Thursday. The company has a debt-to-equity ratio of 0.61, a current ratio of 6.99 and a quick ratio of 1.65. MGP Ingredients has a 1 year low of $12.42 and a 1 year high of $26.77. The firm's 50-day moving average is $15.03 and its two-hundred day moving average is $18.40. The stock has a market cap of $358.19 million, a price-to-earnings ratio of -1.49 and a beta of 0.49.

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

Analysts Set New Price Targets

Several brokerages recently issued reports on MGPI. TD Cowen lifted their price objective on shares of MGP Ingredients from $18.00 to $20.00 and gave the company a "hold" rating in a report on Thursday, July 30th. Roth Capital lowered their target price on MGP Ingredients from $32.00 to $30.00 and set a "buy" rating for the company in a report on Friday, October 16th. Wells Fargo & Company dropped their target price on MGP Ingredients from $22.00 to $17.00 and set an "overweight" rating on the stock in a research report on Monday, October 5th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of MGP Ingredients in a research report on Friday, July 31st. Three research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, MGP Ingredients presently has an average rating of "Hold" and an average target price of $25.50.

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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