Middleby (NASDAQ:MIDD) Reaches New 1-Year Low - What's Next?

Key Points

• The Middleby Corporation's stock reached a new 52-week low of $118.09, closing at $118.30 with a significant trading volume of nearly 4.9 million shares.
• Several analysts downgraded their ratings on Middleby, with consensus now holding a "Moderate Buy" status and an average price target of $166.00.
• Insider activity shows that Director Edward P. Garden purchased 249,339 shares for over $37 million, signaling confidence in the company's long-term prospects despite recent stock declines.

Shares of The Middleby Corporation (NASDAQ:MIDD - Get Free Report) reached a new 52-week low during trading on Thursday . The company traded as low as $118.09 and last traded at $118.30, with a volume of 4885528 shares changing hands. The stock had previously closed at $144.71.

Wall Street Analyst Weigh In

A number of analysts have commented on the stock. Wall Street Zen lowered shares of Middleby from a "buy" rating to a "hold" rating in a research note on Sunday, July 20th. Canaccord Genuity Group reduced their price objective on shares of Middleby from $200.00 to $186.00 and set a "buy" rating for the company in a research note on Thursday, May 8th. Barclays reduced their price objective on shares of Middleby from $180.00 to $165.00 and set an "overweight" rating for the company in a research note on Monday, July 21st. Finally, Robert W. Baird reduced their price objective on shares of Middleby from $188.00 to $162.00 and set an "outperform" rating for the company in a research note on Thursday, May 8th. One investment analyst has rated the stock with a sell rating, two have given a hold rating and five have issued a buy rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $166.00.

Middleby Stock Down 18.3%

The business's 50-day moving average price is $145.41 and its 200-day moving average price is $148.77. The company has a quick ratio of 1.73, a current ratio of 2.72 and a debt-to-equity ratio of 0.63. The firm has a market capitalization of $6.35 billion, a PE ratio of 14.79 and a beta of 1.58.

Middleby (NASDAQ:MIDD - Get Free Report) last posted its quarterly earnings results on Wednesday, August 6th. The industrial products company reported $2.35 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.26 by $0.09. Middleby had a net margin of 11.26% and a return on equity of 14.47%. The business had revenue of $977.86 million during the quarter, compared to analyst estimates of $979.59 million. During the same period in the prior year, the firm earned $2.39 earnings per share. The firm's revenue was down 1.4% compared to the same quarter last year. As a group, equities research analysts predict that The Middleby Corporation will post 9.11 EPS for the current fiscal year.

Insider Buying and Selling

In other news, Director Edward P. Garden acquired 249,339 shares of the company's stock in a transaction that occurred on Tuesday, May 13th. The shares were purchased at an average price of $149.59 per share, for a total transaction of $37,298,621.01. Following the completion of the acquisition, the director owned 3,088,263 shares of the company's stock, valued at approximately $461,973,262.17. This represents a 8.78% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders purchased a total of 640,968 shares of company stock valued at $93,495,270 in the last 90 days. Corporate insiders own 6.18% of the company's stock.

Hedge Funds Weigh In On Middleby

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. ProShare Advisors LLC boosted its position in shares of Middleby by 7.4% in the fourth quarter. ProShare Advisors LLC now owns 2,517 shares of the industrial products company's stock valued at $341,000 after acquiring an additional 173 shares during the period. Garden Investment Management L.P. bought a new stake in shares of Middleby in the fourth quarter valued at approximately $101,958,000. Sarasin & Partners LLP bought a new stake in shares of Middleby in the first quarter valued at approximately $2,283,000. IMC Chicago LLC bought a new stake in shares of Middleby in the first quarter valued at approximately $4,069,000. Finally, Two Sigma Investments LP bought a new stake in shares of Middleby in the fourth quarter valued at approximately $1,621,000. Institutional investors and hedge funds own 98.55% of the company's stock.

About Middleby

The Middleby Corporation designs, markets, manufactures, distributes, and services foodservice, food processing, and residential kitchen equipment worldwide. Its Commercial Foodservice Equipment Group segment offers conveyor, combi, convection, baking, proofing, deck, speed cooking, and hydrovection ovens; ranges, fryers, and rethermalizers; steam cooking, food warming, catering, induction cooking, and countertop cooking equipment; heated cabinets, charbroilers, ventless cooking systems, kitchen ventilation, toasters, griddles, charcoal grills, professional mixers, stainless steel fabrication, custom millwork, professional refrigerators, blast chillers, cold rooms, ice machines, and freezers; soft serve ice cream, coffee and beverage dispensing, home and professional craft brewing equipment; and fry dispensers, bottle filling and canning equipment, IoT solutions, and controls development and manufacturing.

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