Mister Car Wash (NYSE:MCW) Given New $9.00 Price Target at BMO Capital Markets

Key Points

• BMO Capital Markets reduced Mister Car Wash's price target from $11.00 to $9.00 while maintaining an "outperform" rating, indicating a potential upside of 59.72% from the stock's previous close.
• The company reported earnings of $0.11 per share for the last quarter, falling short of the consensus estimate of $0.13, while revenue increased by 4.1% year-over-year.
• Insider selling activity includes significant sales from CEO John Lo-Minn Lai and insider Joseph Duane Matheny, reducing their stakes in the company.

Mister Car Wash (NYSE:MCW - Get Free Report) had its target price decreased by stock analysts at BMO Capital Markets from $11.00 to $9.00 in a note issued to investors on Friday,Benzinga reports. The brokerage currently has an "outperform" rating on the stock. BMO Capital Markets' price target would indicate a potential upside of 59.72% from the stock's previous close.

Several other brokerages also recently commented on MCW. The Goldman Sachs Group started coverage on Mister Car Wash in a research note on Tuesday, June 3rd. They set a "sell" rating and a $6.25 target price for the company. Stifel Nicolaus cut their target price on shares of Mister Car Wash from $8.50 to $7.50 and set a "hold" rating on the stock in a research report on Thursday. BTIG Research began coverage on shares of Mister Car Wash in a report on Monday, June 30th. They set a "neutral" rating for the company. Piper Sandler cut their price objective on Mister Car Wash from $11.00 to $8.00 and set an "overweight" rating on the stock in a report on Thursday. Finally, Wells Fargo & Company lowered their target price on Mister Car Wash from $9.00 to $8.00 and set an "overweight" rating for the company in a report on Friday, July 18th. One analyst has rated the stock with a sell rating, five have issued a hold rating and four have assigned a buy rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $8.00.

Mister Car Wash Price Performance

NYSE:MCW traded down $0.15 during mid-day trading on Friday, reaching $5.64. 1,404,549 shares of the company were exchanged, compared to its average volume of 1,585,745. The company has a fifty day moving average of $6.48 and a 200 day moving average of $7.22. Mister Car Wash has a 12 month low of $5.27 and a 12 month high of $8.60. The stock has a market cap of $1.83 billion, a PE ratio of 25.61, a PEG ratio of 1.65 and a beta of 1.49. The company has a quick ratio of 0.24, a current ratio of 0.53 and a debt-to-equity ratio of 0.92.

Mister Car Wash (NYSE:MCW - Get Free Report) last issued its earnings results on Wednesday, July 30th. The company reported $0.11 EPS for the quarter, missing the consensus estimate of $0.13 by ($0.02). Mister Car Wash had a return on equity of 10.49% and a net margin of 7.06%. The business had revenue of $265.42 million for the quarter, compared to the consensus estimate of $271.83 million. During the same quarter in the prior year, the firm posted $0.11 earnings per share. The business's revenue was up 4.1% compared to the same quarter last year. On average, research analysts anticipate that Mister Car Wash will post 0.33 EPS for the current fiscal year.

Insider Buying and Selling

In related news, insider Joseph Duane Matheny sold 102,456 shares of the business's stock in a transaction dated Monday, June 23rd. The shares were sold at an average price of $6.30, for a total transaction of $645,472.80. Following the transaction, the insider directly owned 88,196 shares in the company, valued at approximately $555,634.80. The trade was a 53.74% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO John Lo-Minn Lai sold 41,997 shares of the business's stock in a transaction that occurred on Monday, June 2nd. The stock was sold at an average price of $6.69, for a total value of $280,959.93. Following the completion of the transaction, the chief executive officer owned 4,532,254 shares in the company, valued at $30,320,779.26. The trade was a 0.92% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 266,355 shares of company stock valued at $1,733,596. 69.00% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. American Century Companies Inc. grew its stake in shares of Mister Car Wash by 21.5% during the 4th quarter. American Century Companies Inc. now owns 162,747 shares of the company's stock worth $1,186,000 after acquiring an additional 28,829 shares during the period. KLP Kapitalforvaltning AS purchased a new stake in Mister Car Wash during the fourth quarter valued at about $128,000. LPL Financial LLC bought a new position in Mister Car Wash during the fourth quarter worth about $102,000. JPMorgan Chase & Co. increased its stake in shares of Mister Car Wash by 136.0% in the fourth quarter. JPMorgan Chase & Co. now owns 276,533 shares of the company's stock worth $2,016,000 after purchasing an additional 159,358 shares in the last quarter. Finally, Wells Fargo & Company MN raised its position in shares of Mister Car Wash by 46.3% in the fourth quarter. Wells Fargo & Company MN now owns 49,395 shares of the company's stock valued at $360,000 after purchasing an additional 15,640 shares during the period.

Mister Car Wash Company Profile

Mister Car Wash, Inc, together with its subsidiaries, provides conveyorized car wash services in the United States. It offers express exterior and interior cleaning services. The company serves individual retail and corporate customers. The company was formerly known as Hotshine Holdings, Inc and changed its name to Mister Car Wash, Inc in March 2021.

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