MasterBrand (NYSE:MBC) Sets New 52-Week Low Following Weak Earnings

MasterBrand, Inc. (NYSE:MBC - Get Free Report) shares reached a new 52-week low on Wednesday after the company announced weaker than expected quarterly earnings. The stock traded as low as $10.76 and last traded at $10.92, with a volume of 124509 shares changing hands. The stock had previously closed at $11.98.

The company reported $0.18 EPS for the quarter, missing analysts' consensus estimates of $0.23 by ($0.05). MasterBrand had a net margin of 4.66% and a return on equity of 13.89%. The business had revenue of $660.30 million during the quarter, compared to analyst estimates of $663.95 million.

MasterBrand declared that its Board of Directors has initiated a stock repurchase plan on Monday, March 17th that permits the company to buyback $50.00 million in outstanding shares. This buyback authorization permits the company to reacquire up to 2.9% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's board believes its stock is undervalued.

Wall Street Analysts Forecast Growth

MBC has been the topic of a number of recent analyst reports. Loop Capital cut their price target on shares of MasterBrand from $16.00 to $15.00 and set a "buy" rating on the stock in a research note on Wednesday, May 7th. Zelman & Associates reaffirmed an "underperform" rating on shares of MasterBrand in a research note on Monday, April 14th.

Insider Transactions at MasterBrand

In other MasterBrand news, Director Juliana L. Chugg purchased 6,989 shares of MasterBrand stock in a transaction dated Monday, February 24th. The shares were bought at an average cost of $14.17 per share, for a total transaction of $99,034.13. Following the transaction, the director now owns 33,424 shares in the company, valued at $473,618.08. This represents a 26.44% increase in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Robert Crisci purchased 20,000 shares of MasterBrand stock in a transaction dated Friday, February 28th. The stock was acquired at an average price of $14.08 per share, for a total transaction of $281,600.00. Following the completion of the transaction, the director now owns 66,435 shares in the company, valued at approximately $935,404.80. The trade was a 43.07% increase in their position. The disclosure for this purchase can be found here. Company insiders own 1.38% of the company's stock.

Institutional Trading of MasterBrand

Several hedge funds have recently bought and sold shares of the company. Barclays PLC increased its stake in MasterBrand by 262.4% during the 3rd quarter. Barclays PLC now owns 234,160 shares of the company's stock valued at $4,341,000 after buying an additional 169,550 shares during the period. Franklin Resources Inc. raised its position in shares of MasterBrand by 2.3% during the 3rd quarter. Franklin Resources Inc. now owns 82,457 shares of the company's stock worth $1,491,000 after buying an additional 1,865 shares in the last quarter. Hennessy Advisors Inc. raised its position in shares of MasterBrand by 6.8% during the 4th quarter. Hennessy Advisors Inc. now owns 549,900 shares of the company's stock worth $8,034,000 after buying an additional 35,100 shares in the last quarter. Wedge Capital Management L L P NC raised its position in shares of MasterBrand by 10.7% during the 4th quarter. Wedge Capital Management L L P NC now owns 77,896 shares of the company's stock worth $1,138,000 after buying an additional 7,515 shares in the last quarter. Finally, Nisa Investment Advisors LLC raised its position in shares of MasterBrand by 4.5% during the 4th quarter. Nisa Investment Advisors LLC now owns 36,361 shares of the company's stock worth $531,000 after buying an additional 1,561 shares in the last quarter. 87.32% of the stock is currently owned by institutional investors.

MasterBrand Price Performance

The company has a market capitalization of $1.38 billion, a P/E ratio of 11.24 and a beta of 1.74. The business's 50-day simple moving average is $12.43 and its 200 day simple moving average is $14.95. The company has a current ratio of 1.65, a quick ratio of 1.02 and a debt-to-equity ratio of 0.78.

MasterBrand Company Profile

MasterBrand, Inc engages in the manufacture and sale of residential cabinets in the United States and Canada. The company offers a range of residential cabinetry products for the kitchen, bathroom, and other parts of the home. It sells its products to remodeling and new construction markets through dealers, retailers, and builders.