Corvex Management LP Lowers Stake in MDU Resources Group, Inc. $MDU

Key Points

• Corvex Management LP has reduced its stake in MDU Resources Group by 17.4%, now owning approximately 5.87 million shares valued at $99.29 million, making it the firm's 10th largest position.
• MDU Resources Group recently increased its quarterly dividend from $0.13 to $0.14 per share, with a yield of 3.5%, reflecting a 49.06% dividend payout ratio.
• Wall Street Zen downgraded MDU Resources Group's rating from "hold" to "sell", though the overall analyst consensus remains a "Moderate Buy" with a target price of $18.00.

Corvex Management LP lessened its stake in shares of MDU Resources Group, Inc. (NYSE:MDU - Free Report) by 17.4% during the 1st quarter, according to its most recent disclosure with the SEC. The institutional investor owned 5,871,758 shares of the utilities provider's stock after selling 1,237,071 shares during the period. MDU Resources Group comprises approximately 3.8% of Corvex Management LP's investment portfolio, making the stock its 10th largest holding. Corvex Management LP owned 2.87% of MDU Resources Group worth $99,291,000 as of its most recent SEC filing.

A number of other hedge funds have also recently bought and sold shares of the stock. Price T Rowe Associates Inc. MD raised its stake in shares of MDU Resources Group by 9.8% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 129,165 shares of the utilities provider's stock worth $2,328,000 after purchasing an additional 11,533 shares in the last quarter. Comerica Bank increased its holdings in MDU Resources Group by 45.3% during the fourth quarter. Comerica Bank now owns 110,368 shares of the utilities provider's stock worth $1,989,000 after buying an additional 34,384 shares during the last quarter. Ameriprise Financial Inc. raised its position in MDU Resources Group by 134.0% during the fourth quarter. Ameriprise Financial Inc. now owns 507,793 shares of the utilities provider's stock worth $9,152,000 after acquiring an additional 290,756 shares in the last quarter. BNP Paribas Financial Markets lifted its stake in MDU Resources Group by 38.9% in the fourth quarter. BNP Paribas Financial Markets now owns 34,459 shares of the utilities provider's stock valued at $621,000 after acquiring an additional 9,652 shares during the last quarter. Finally, Bank of America Corp DE lifted its stake in MDU Resources Group by 0.8% in the fourth quarter. Bank of America Corp DE now owns 535,928 shares of the utilities provider's stock valued at $9,657,000 after acquiring an additional 4,461 shares during the last quarter. 71.44% of the stock is currently owned by institutional investors.

Insider Buying and Selling

In other MDU Resources Group news, CFO Jason L. Vollmer acquired 5,000 shares of the company's stock in a transaction on Tuesday, August 19th. The stock was acquired at an average price of $16.27 per share, for a total transaction of $81,350.00. Following the purchase, the chief financial officer directly owned 339,548 shares of the company's stock, valued at $5,524,445.96. This trade represents a 1.49% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Corporate insiders own 0.94% of the company's stock.

Wall Street Analysts Forecast Growth

Separately, Wall Street Zen cut shares of MDU Resources Group from a "hold" rating to a "sell" rating in a report on Saturday, August 9th. Two investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $18.00.

MDU Resources Group Stock Performance

MDU Resources Group stock traded down $0.11 during trading hours on Monday, hitting $16.08. The company had a trading volume of 1,493,516 shares, compared to its average volume of 1,680,365. MDU Resources Group, Inc. has a one year low of $14.91 and a one year high of $30.52. The firm has a market cap of $3.28 billion, a PE ratio of 15.17, a PEG ratio of 2.56 and a beta of 0.70. The firm has a 50-day moving average of $16.70 and a 200 day moving average of $16.76. The company has a debt-to-equity ratio of 0.75, a current ratio of 0.74 and a quick ratio of 0.71.

MDU Resources Group (NYSE:MDU - Get Free Report) last announced its earnings results on Thursday, August 7th. The utilities provider reported $0.07 earnings per share for the quarter, missing analysts' consensus estimates of $0.13 by ($0.06). The firm had revenue of $351.20 million for the quarter, compared to the consensus estimate of $315.67 million. MDU Resources Group had a return on equity of 8.29% and a net margin of 8.25%.MDU Resources Group's revenue for the quarter was up 1.9% on a year-over-year basis. During the same quarter last year, the business posted $0.32 EPS. MDU Resources Group has set its FY 2025 guidance at 0.880-0.950 EPS. On average, sell-side analysts expect that MDU Resources Group, Inc. will post 0.94 earnings per share for the current year.

MDU Resources Group Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Thursday, September 11th will be given a dividend of $0.14 per share. This is a positive change from MDU Resources Group's previous quarterly dividend of $0.13. This represents a $0.56 dividend on an annualized basis and a yield of 3.5%. The ex-dividend date of this dividend is Thursday, September 11th. MDU Resources Group's payout ratio is 49.06%.

MDU Resources Group Profile

MDU Resources Group, Inc engages in the regulated energy delivery, and construction materials and services businesses in the United States. It operates through four segments: Electric, Natural Gas Distribution, Pipeline, and Construction Services. The Electric segment generates, transmits, and distributes electricity for residential, commercial, industrial, and municipal customers in Montana, North Dakota, South Dakota, and Wyoming; and operates 3,400 miles of transmission lines, 4,800 miles of distribution lines, and 82 transmission and 298 distribution substations.