Miller Industries (NYSE:MLR) Stock Price Up 7.3% on Better-Than-Expected Earnings

Key Points

• Shares jumped 7.3% after Miller Industries beat expectations, reporting EPS of $0.29 vs. a $0.03 consensus and revenue of $171.9M vs. $164.2M, trading as high as $48.94.
• Miller Industries raised its quarterly dividend to $0.21 (from $0.20), an annualized $0.84 payout with a roughly 1.7% yield and a 30.77% payout ratio.
• Analysts hold a consensus "Hold" rating (one Buy, two Hold) with an average price target of $55, and institutional investors own about 79% of the stock.

Miller Industries, Inc. (NYSE:MLR - Get Free Report) shot up 7.3% during trading on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $48.94 and last traded at $48.26. 57,409 shares traded hands during mid-day trading, an increase of 13% from the average session volume of 50,633 shares. The stock had previously closed at $44.98.

The auto parts company reported $0.29 EPS for the quarter, topping the consensus estimate of $0.03 by $0.26. Miller Industries had a return on equity of 7.32% and a net margin of 3.59%.The business had revenue of $171.92 million for the quarter, compared to analyst estimates of $164.20 million.

Miller Industries Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, March 23rd. Shareholders of record on Monday, March 16th will be given a dividend of $0.21 per share. The ex-dividend date is Monday, March 16th. This is a positive change from Miller Industries's previous quarterly dividend of $0.20. This represents a $0.84 dividend on an annualized basis and a yield of 1.7%. Miller Industries's dividend payout ratio (DPR) is presently 30.77%.

Analyst Upgrades and Downgrades

Several research firms recently commented on MLR. Weiss Ratings reiterated a "hold (c)" rating on shares of Miller Industries in a research report on Monday, December 29th. Loop Capital set a $46.00 price target on shares of Miller Industries in a report on Monday, November 10th. One research analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $55.00.

Hedge Funds Weigh In On Miller Industries

Several institutional investors have recently added to or reduced their stakes in the business. Pacific Ridge Capital Partners LLC boosted its holdings in Miller Industries by 24.3% in the third quarter. Pacific Ridge Capital Partners LLC now owns 121,261 shares of the auto parts company's stock valued at $4,901,000 after acquiring an additional 23,683 shares during the last quarter. CW Advisors LLC raised its holdings in shares of Miller Industries by 228.0% in the 2nd quarter. CW Advisors LLC now owns 23,125 shares of the auto parts company's stock worth $1,028,000 after purchasing an additional 16,075 shares during the period. RBF Capital LLC purchased a new stake in Miller Industries during the 2nd quarter worth $1,272,000. Semanteon Capital Management LP acquired a new stake in shares of Miller Industries during the second quarter valued at about $330,000. Finally, Y Intercept Hong Kong Ltd purchased a new stake in Miller Industries during the 3rd quarter worth approximately $810,000. 79.24% of the stock is currently owned by institutional investors and hedge funds.

Miller Industries Stock Performance

The stock has a 50-day simple moving average of $41.34 and a 200-day simple moving average of $40.29. The company has a market capitalization of $552.30 million, a price-to-earnings ratio of 18.58 and a beta of 1.25. The company has a current ratio of 3.46, a quick ratio of 2.13 and a debt-to-equity ratio of 0.11.

About Miller Industries

Miller Industries, Inc is a leading designer, engineer and manufacturer of towing and recovery vehicles and related equipment. The company's product portfolio includes light-, medium- and heavy-duty tow trucks, integrated carriers, rotators, wreckers, trailers and associated hydraulic and electronic components. These products are marketed under well-known brand names, including Miller, Century, Holmes, Vulcan, Chevron and Jige International, serving a broad spectrum of customers in the towing, recovery, roadside assistance and vehicle transport industries.

Headquartered in Ooltewah, Tennessee, Miller Industries was founded in the early 1990s and has grown into a global supplier of towing and recovery solutions.

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