Bank of America Corp DE Acquires New Shares in MGP Ingredients, Inc. $MGPI

Key Points

• Bank of America acquired 106,020 shares of MGP Ingredients in the second quarter, worth approximately $1.86 million, giving it a 0.50% stake. Institutional investors and hedge funds collectively own 77.11% of the company.
• Analyst sentiment remains mixed, with a consensus rating of Hold and an average price target of $27.25. Recent targets included $20 from TD Cowen and $22 from Wells Fargo.
• MGP Ingredients beat quarterly EPS estimates, reporting $0.72 versus the expected $0.49, but revenue declined 14.5% year over year to $124.36 million. The company pays a quarterly dividend of $0.12, equivalent to a 3.6% annualized yield.

Bank of America Corp DE acquired a new stake in MGP Ingredients, Inc. (NASDAQ:MGPI - Free Report) in the second quarter, according to the company in its most recent filing with the SEC. The firm acquired 106,020 shares of the company's stock, valued at approximately $1,857,000. Bank of America Corp DE owned about 0.50% of MGP Ingredients at the end of the most recent reporting period.

Several other hedge funds have also added to or reduced their stakes in the business. Pacer Advisors Inc. bought a new position in MGP Ingredients during the 4th quarter worth $2,278,000. BlackRock Inc. acquired a new stake in MGP Ingredients during the 2nd quarter valued at approximately $22,258,000. PDT Partners LLC acquired a new stake in shares of MGP Ingredients during the second quarter worth $1,582,000. Arrowstreet Capital Limited Partnership acquired a new stake in MGP Ingredients during the 1st quarter worth about $2,725,000. Finally, Tieton Capital Management LLC acquired a new stake in MGP Ingredients during the second quarter worth approximately $11,252,000. 77.11% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

MGPI has been the topic of several research analyst reports. TD Cowen increased their target price on shares of MGP Ingredients from $18.00 to $20.00 and gave the stock a "hold" rating in a research note on Thursday, July 30th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of MGP Ingredients in a research note on Friday, July 31st. Finally, Wells Fargo & Company upped their price objective on shares of MGP Ingredients from $21.00 to $22.00 and gave the company an "overweight" rating in a report on Thursday, July 30th. Three analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $27.25.

MGP Ingredients Stock Performance

NASDAQ MGPI opened at $13.25 on Thursday. The company has a fifty day simple moving average of $16.32 and a 200 day simple moving average of $17.37. MGP Ingredients, Inc. has a 12-month low of $12.50 and a 12-month high of $26.77. The company has a current ratio of 6.99, a quick ratio of 1.65 and a debt-to-equity ratio of 0.61. The company has a market cap of $283.68 million, a P/E ratio of -1.18 and a beta of 0.45.

MGP Ingredients (NASDAQ:MGPI - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The company reported $0.72 EPS for the quarter, beating analysts' consensus estimates of $0.49 by $0.23. MGP Ingredients had a negative net margin of 48.08% and a positive return on equity of 7.41%. The business 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 business posted $0.97 EPS. MGP Ingredients'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. Sell-side analysts predict that MGP Ingredients, Inc. will post 1.65 earnings per share for the current fiscal year.

MGP Ingredients Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, August 28th. Stockholders of record on Friday, August 14th were issued a $0.12 dividend. This represents a $0.48 dividend on an annualized basis and a dividend yield of 3.6%. The ex-dividend date was Friday, August 14th. MGP Ingredients's dividend payout ratio (DPR) is currently -4.26%.

Insider Buying and Selling

In related news, insider Paul Lux sold 33,000 shares of the company's stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $17.76, for a total transaction of $586,080.00. Following the completion of the sale, the insider owned 550,458 shares in the company, valued at approximately $9,776,134.08. This represents a 5.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Leslie Lux sold 27,731 shares of the company's stock in a transaction on 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 company insiders.

About MGP Ingredients

MGP Ingredients, Inc is a food, beverage and spirits company headquartered in Atchison, Kansas. Founded in 1941 as Midwest Grain Products, the company has developed from a grain-processing and distilling business into a diversified producer of specialty ingredients, distilled spirits and branded alcoholic beverages.

MGP's Ingredient Solutions segment produces specialty wheat proteins and starches used in food applications, including meat alternatives, baked goods, snacks and other processed foods.

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