MDU Resources Group (NYSE:MDU) Cut to "Strong Sell" at Zacks Research

Key Points

• MDU Resources Group has been downgraded by Zacks Research from a "hold" to a "strong sell" rating, indicating a significant negative outlook on the stock.
• Despite the downgrade, some analysts remain optimistic; for instance, Jefferies Financial Group upgraded the stock from "hold" to "buy" with a target price of $20.00.
• The company's latest earnings report showed a miss in EPS at $0.07 compared to the expected $0.13, although revenue exceeded expectations at $351.20 million.

MDU Resources Group (NYSE:MDU - Get Free Report) was downgraded by research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a report released on Tuesday,Zacks.com reports.

Several other analysts have also issued reports on the stock. Weiss Ratings raised shares of MDU Resources Group from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Wednesday, October 8th. Jefferies Financial Group raised shares of MDU Resources Group from a "hold" rating to a "buy" rating and set a $20.00 target price on the stock in a report on Friday, September 19th. Wall Street Zen downgraded shares of MDU Resources Group from a "hold" rating to a "sell" rating in a research note on Saturday, August 9th. Finally, Cowen started coverage on MDU Resources Group in a research report on Wednesday. They set a "hold" rating on the stock. Three analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus price target of $18.67.

MDU Resources Group Stock Performance

Shares of NYSE MDU opened at $19.31 on Tuesday. The company has a debt-to-equity ratio of 0.75, a quick ratio of 0.71 and a current ratio of 0.74. The stock has a 50 day moving average price of $16.93 and a 200 day moving average price of $16.86. The stock has a market capitalization of $3.95 billion, a PE ratio of 18.22, a price-to-earnings-growth ratio of 3.03 and a beta of 0.70. MDU Resources Group has a 52 week low of $14.91 and a 52 week high of $30.52.

MDU Resources Group (NYSE:MDU - Get Free Report) last announced its quarterly earnings data on Thursday, August 7th. The utilities provider reported $0.07 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.13 by ($0.06). The company 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%.The company's revenue for the quarter was up 1.9% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.32 EPS. MDU Resources Group has set its FY 2025 guidance at 0.880-0.950 EPS. Analysts predict that MDU Resources Group will post 0.94 earnings per share for the current fiscal year.

Insider Buying and Selling at MDU Resources Group

In other news, CFO Jason L. Vollmer purchased 5,000 shares of the company's stock in a transaction that occurred on Monday, September 8th. The stock was acquired at an average cost of $16.07 per share, with a total value of $80,350.00. Following the acquisition, the chief financial officer owned 344,548 shares in the company, valued at approximately $5,536,886.36. This trade represents a 1.47% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 0.94% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in MDU. GAMMA Investing LLC boosted its position in shares of MDU Resources Group by 5,682.0% in the first quarter. GAMMA Investing LLC now owns 31,165 shares of the utilities provider's stock valued at $527,000 after acquiring an additional 30,626 shares during the period. Wealth Enhancement Advisory Services LLC raised its stake in MDU Resources Group by 8.7% in the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 21,663 shares of the utilities provider's stock worth $366,000 after purchasing an additional 1,742 shares in the last quarter. Riverwater Partners LLC boosted its holdings in MDU Resources Group by 55.7% in the 1st quarter. Riverwater Partners LLC now owns 78,950 shares of the utilities provider's stock valued at $1,335,000 after purchasing an additional 28,236 shares during the period. Garde Capital Inc. bought a new stake in MDU Resources Group in the 1st quarter valued at about $82,000. Finally, Cambridge Investment Research Advisors Inc. grew its position in shares of MDU Resources Group by 28.6% during the 1st quarter. Cambridge Investment Research Advisors Inc. now owns 66,160 shares of the utilities provider's stock worth $1,119,000 after purchasing an additional 14,701 shares in the last quarter. Institutional investors own 71.44% of the company's stock.

About MDU Resources Group

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.

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