Middleby (NASDAQ:MIDD) Stock Price Down 9.4% - Time to Sell?

Key Points

• Middleby Corporation shares fell 9.4% on Wednesday, closing at $131.10, with a trading volume increase of 33% from average levels.
• Analysts have reduced their target prices for Middleby's stock, with estimates ranging from $162.00 to $175.00, reflecting a consensus rating of "Moderate Buy."
• Despite a quarterly earnings per share of $2.35, up from consensus estimates, the company reported a 1.4% decline in revenue compared to the previous year.

Shares of The Middleby Corporation (NASDAQ:MIDD - Get Free Report) traded down 9.4% during mid-day trading on Wednesday . The company traded as low as $132.24 and last traded at $131.10. 1,156,900 shares traded hands during trading, an increase of 33% from the average session volume of 869,321 shares. The stock had previously closed at $144.71.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on the company. Barclays reduced their price target on Middleby from $180.00 to $165.00 and set an "overweight" rating on the stock in a research report on Monday, July 21st. Robert W. Baird cut their target price on Middleby from $188.00 to $162.00 and set an "outperform" rating on the stock in a research report on Thursday, May 8th. JPMorgan Chase & Co. cut their target price on Middleby from $145.00 to $125.00 and set an "underweight" rating on the stock in a research report on Thursday. Canaccord Genuity Group cut their target price on Middleby from $186.00 to $162.00 and set a "buy" rating on the stock in a research report on Thursday. Finally, Wall Street Zen downgraded Middleby from a "buy" rating to a "hold" rating in a research report on Sunday, July 20th. One equities research analyst has rated the stock with a sell rating, two have assigned a hold rating and five have given a buy rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $159.00.

Middleby Stock Down 0.4%

The stock has a market cap of $6.07 billion, a PE ratio of 15.23 and a beta of 1.58. The company has a current ratio of 2.57, a quick ratio of 1.56 and a debt-to-equity ratio of 0.64. The business has a 50-day moving average price of $144.33 and a 200-day moving average price of $148.51.

Middleby (NASDAQ:MIDD - Get Free Report) last issued its quarterly earnings results on Wednesday, August 6th. The industrial products company reported $2.35 earnings per share for the quarter, beating analysts' consensus estimates of $2.20 by $0.15. The firm had revenue of $977.86 million for the quarter, compared to analyst estimates of $979.59 million. Middleby had a net margin of 11.06% and a return on equity of 14.14%. Middleby's quarterly revenue was down 1.4% compared to the same quarter last year. During the same period last year, the company posted $2.39 EPS. As a group, analysts forecast that The Middleby Corporation will post 9.11 earnings per share for the current year.

Insiders Place Their Bets

In related news, Director Edward P. Garden purchased 249,339 shares of the firm's stock in a transaction that occurred on Tuesday, May 13th. The shares were purchased at an average cost of $149.59 per share, with a total value of $37,298,621.01. Following the purchase, the director owned 3,088,263 shares of the company's stock, valued at $461,973,262.17. This represents a 8.78% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Over the last 90 days, insiders have bought 437,910 shares of company stock valued at $65,243,811. Company insiders own 6.18% of the company's stock.

Institutional Trading of Middleby

Hedge funds have recently bought and sold shares of the business. TCTC Holdings LLC raised its holdings in Middleby by 116.7% in the 1st quarter. TCTC Holdings LLC now owns 169 shares of the industrial products company's stock valued at $26,000 after acquiring an additional 91 shares during the last quarter. Migdal Insurance & Financial Holdings Ltd. acquired a new stake in Middleby in the 2nd quarter valued at about $30,000. Allworth Financial LP raised its holdings in Middleby by 168.8% in the 2nd quarter. Allworth Financial LP now owns 207 shares of the industrial products company's stock valued at $30,000 after acquiring an additional 130 shares during the last quarter. AdvisorShares Investments LLC acquired a new stake in Middleby in the 2nd quarter valued at about $37,000. Finally, Versant Capital Management Inc raised its holdings in Middleby by 760.0% in the 1st quarter. Versant Capital Management Inc now owns 258 shares of the industrial products company's stock valued at $39,000 after acquiring an additional 228 shares during the last quarter. 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.