MGP Ingredients (NASDAQ:MGPI) Stock Crosses Below Two Hundred Day Moving Average - Here's Why

Key Points

• MGP Ingredients' stock price has fallen below its 200-day moving average, trading as low as $27.08 from an average of $31.13.
• The company reported earnings of $0.97 per share for the last quarter, surpassing analyst expectations, but experienced a 23.7% decline in revenue year-over-year.
• MGP Ingredients has announced a quarterly dividend of $0.12 per share, representing a dividend yield of 1.7% despite a payout ratio of 106.67%.

MGP Ingredients, Inc. (NASDAQ:MGPI - Get Free Report)'s stock price crossed below its 200-day moving average during trading on Friday . The stock has a 200-day moving average of $31.13 and traded as low as $27.08. MGP Ingredients shares last traded at $27.93, with a volume of 299,363 shares changing hands.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on the stock. Wall Street Zen downgraded shares of MGP Ingredients from a "hold" rating to a "sell" rating in a research note on Saturday, May 10th. Truist Financial decreased their price objective on MGP Ingredients from $40.00 to $35.00 and set a "buy" rating on the stock in a research report on Thursday, April 24th. One analyst has rated the stock with a sell rating, one has issued a hold rating and four have issued a buy rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $50.33.

MGP Ingredients Stock Down 1.2%

The company has a debt-to-equity ratio of 0.35, a current ratio of 2.91 and a quick ratio of 0.76. The stock has a market cap of $594.07 million, a price-to-earnings ratio of -90.10 and a beta of 0.33. The firm has a 50 day simple moving average of $30.33 and a two-hundred day simple moving average of $31.13.

MGP Ingredients (NASDAQ:MGPI - Get Free Report) last released its quarterly earnings data on Thursday, July 31st. The company reported $0.97 earnings per share for the quarter, topping the consensus estimate of $0.64 by $0.33. MGP Ingredients had a negative net margin of 1.08% and a positive return on equity of 10.66%. The business had revenue of $145.49 million for the quarter, compared to analyst estimates of $138.70 million. During the same quarter last year, the firm earned $1.71 EPS. MGP Ingredients's quarterly revenue was down 23.7% compared to the same quarter last year. As a group, sell-side analysts expect that MGP Ingredients, Inc. will post 5.56 EPS for the current year.

MGP Ingredients Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 29th. Investors of record on Friday, August 15th will be paid a dividend of $0.12 per share. This represents a $0.48 dividend on an annualized basis and a yield of 1.7%. The ex-dividend date of this dividend is Friday, August 15th. MGP Ingredients's dividend payout ratio is presently 106.67%.

Insiders Place Their Bets

In related news, Director Martin Roper acquired 15,000 shares of the business's stock in a transaction that occurred on Thursday, May 8th. The shares were acquired at an average cost of $33.10 per share, with a total value of $496,500.00. Following the transaction, the director owned 18,180 shares of the company's stock, valued at $601,758. The trade was a 471.70% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 34.40% of the company's stock.

Institutional Trading of MGP Ingredients

Institutional investors have recently made changes to their positions in the business. Vanguard Group Inc. grew its stake in MGP Ingredients by 1.7% in the first quarter. Vanguard Group Inc. now owns 1,145,485 shares of the company's stock valued at $33,654,000 after purchasing an additional 19,316 shares in the last quarter. Dimensional Fund Advisors LP lifted its stake in MGP Ingredients by 6.7% in the fourth quarter. Dimensional Fund Advisors LP now owns 914,854 shares of the company's stock valued at $36,017,000 after acquiring an additional 57,714 shares during the last quarter. Wasatch Advisors LP bought a new position in shares of MGP Ingredients in the 4th quarter valued at about $28,388,000. Ariel Investments LLC raised its holdings in shares of MGP Ingredients by 4.5% in the 1st quarter. Ariel Investments LLC now owns 626,058 shares of the company's stock valued at $18,394,000 after purchasing an additional 27,155 shares during the period. Finally, Massachusetts Financial Services Co. MA lifted its stake in MGP Ingredients by 16.8% in the 4th quarter. Massachusetts Financial Services Co. MA now owns 579,067 shares of the company's stock valued at $22,798,000 after purchasing an additional 83,445 shares during the last quarter. Institutional investors own 77.11% of the company's stock.

MGP Ingredients Company Profile

MGP Ingredients, Inc, together with its subsidiaries, engages in the production and supply of distilled spirits, branded spirits, and food ingredients in the United States and internationally. The company operates through three segments: Distillery Solutions; Branded Spirits; and Ingredient Solutions.

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