MasterBrand (NYSE:MBC) Sees Strong Trading Volume on Strong Earnings

Key Points

• MasterBrand, Inc. reported a quarterly EPS of $0.40, exceeding analysts' expectations of $0.34, leading to an 18% increase in trading volume with approximately 1.2 million shares exchanged.
• Despite the earnings beat, Loop Capital reduced its price target on MasterBrand from $16.00 to $15.00 while maintaining a "buy" rating, indicating mixed sentiment among analysts.
• Institutional investors hold 87.32% of MasterBrand's stock, with notable increases in holdings from Gates Capital Management and Boston Partners.

MasterBrand, Inc. (NYSE:MBC - Get Free Report) saw unusually-strong trading volume on Wednesday following a better than expected earnings announcement. Approximately 1,192,210 shares traded hands during trading, an increase of 18% from the previous session's volume of 1,008,148 shares.The stock last traded at $12.34 and had previously closed at $11.33.

The company reported $0.40 EPS for the quarter, topping analysts' consensus estimates of $0.34 by $0.06. The firm had revenue of $730.90 million for the quarter, compared to analyst estimates of $683.30 million. MasterBrand had a net margin of 3.37% and a return on equity of 11.88%.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on MBC. Zelman & Associates reaffirmed an "underperform" rating on shares of MasterBrand in a research note on Monday, April 14th. Loop Capital reduced their price target on MasterBrand from $16.00 to $15.00 and set a "buy" rating on the stock in a research report on Wednesday, May 7th. Finally, Wall Street Zen upgraded MasterBrand from a "hold" rating to a "buy" rating in a research report on Saturday.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in MBC. Gates Capital Management Inc. lifted its position in shares of MasterBrand by 1.9% in the first quarter. Gates Capital Management Inc. now owns 9,669,562 shares of the company's stock worth $126,284,000 after purchasing an additional 179,984 shares in the last quarter. Boston Partners lifted its position in shares of MasterBrand by 5.8% in the second quarter. Boston Partners now owns 8,280,239 shares of the company's stock worth $90,632,000 after purchasing an additional 452,533 shares in the last quarter. Dimensional Fund Advisors LP lifted its position in MasterBrand by 4.8% during the 4th quarter. Dimensional Fund Advisors LP now owns 4,976,769 shares of the company's stock worth $72,709,000 after buying an additional 226,818 shares in the last quarter. Pzena Investment Management LLC lifted its position in MasterBrand by 45.3% during the 2nd quarter. Pzena Investment Management LLC now owns 4,154,751 shares of the company's stock worth $45,411,000 after buying an additional 1,295,267 shares in the last quarter. Finally, Coliseum Capital Management LLC bought a new stake in MasterBrand during the 1st quarter worth about $41,517,000. 87.32% of the stock is currently owned by institutional investors.

MasterBrand Stock Down 0.4%

The firm's 50-day simple moving average is $11.08 and its 200 day simple moving average is $12.50. The company has a debt-to-equity ratio of 0.73, a quick ratio of 1.12 and a current ratio of 1.87. The stock has a market capitalization of $1.51 billion, a P/E ratio of 10.01 and a beta of 1.42.

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.