Morgan Stanley Has Lowered Expectations for Mister Car Wash (NYSE:MCW) Stock Price

Key Points

• Morgan Stanley has lowered its target price for Mister Car Wash (NYSE:MCW) from $9.00 to $7.50, maintaining an "equal weight" rating, which suggests a potential upside of 40.13% from the current price.
• The company's recent earnings report showed it missed consensus estimates, with earnings per share of $0.11, below the expected $0.13, and revenue of $265.42 million, missing the $271.83 million forecast.
• Insiders have been selling shares, with CFO Jedidiah Marc Gold and another insider selling a significant number of shares recently, contributing to a total of 266,355 shares sold over the last 90 days.

Mister Car Wash (NYSE:MCW - Get Free Report) had its target price lowered by stock analysts at Morgan Stanley from $9.00 to $7.50 in a report issued on Thursday,Benzinga reports. The brokerage currently has an "equal weight" rating on the stock. Morgan Stanley's price objective would suggest a potential upside of 40.13% from the company's current price.

Other research analysts have also issued reports about the company. The Goldman Sachs Group initiated coverage on Mister Car Wash in a research report on Tuesday, June 3rd. They set a "sell" rating and a $6.25 target price for the company. Stephens lowered their target price on Mister Car Wash from $9.00 to $8.50 and set an "equal weight" rating for the company in a research report on Thursday, April 24th. BTIG Research began coverage on Mister Car Wash in a research report on Monday, June 30th. They set a "neutral" rating for the company. Piper Sandler reduced their price objective on shares of Mister Car Wash from $11.00 to $8.00 and set an "overweight" rating on the stock in a research note on Thursday. Finally, Stifel Nicolaus reduced their price objective on shares of Mister Car Wash from $8.50 to $7.50 and set a "hold" rating on the stock in a research note on Thursday. One analyst has rated the stock with a sell rating, five have assigned a hold rating and three have issued a buy rating to the company. Based on data from MarketBeat, Mister Car Wash has a consensus rating of "Hold" and an average target price of $7.88.

Mister Car Wash Price Performance

MCW stock traded down $0.79 during trading on Thursday, reaching $5.35. 7,122,887 shares of the company were exchanged, compared to its average volume of 1,552,422. The company has a 50-day moving average of $6.51 and a two-hundred day moving average of $7.23. The company has a market capitalization of $1.74 billion, a price-to-earnings ratio of 24.30, a P/E/G ratio of 1.65 and a beta of 1.49. Mister Car Wash has a twelve month low of $5.27 and a twelve month high of $8.60. The company has a debt-to-equity ratio of 0.92, a current ratio of 0.53 and a quick ratio of 0.24.

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

Insider Buying and Selling at Mister Car Wash

In related news, CFO Jedidiah Marc Gold sold 9,187 shares of the stock in a transaction on Monday, June 2nd. The shares were sold at an average price of $6.69, for a total transaction of $61,461.03. Following the transaction, the chief financial officer directly owned 66,994 shares of the company's stock, valued at $448,189.86. This represents a 12.06% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Joseph Duane Matheny sold 102,456 shares of the stock in a transaction on Monday, June 23rd. The stock was 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. This represents a 53.74% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 266,355 shares of company stock valued at $1,733,596 over the last 90 days. Insiders own 69.00% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. GAMMA Investing LLC increased its position in shares of Mister Car Wash by 87.4% during the second quarter. GAMMA Investing LLC now owns 5,645 shares of the company's stock worth $34,000 after acquiring an additional 2,632 shares in the last quarter. Quantinno Capital Management LP acquired a new stake in shares of Mister Car Wash in the 4th quarter worth about $77,000. Quarry LP acquired a new stake in shares of Mister Car Wash in the 4th quarter worth about $79,000. Forum Financial Management LP acquired a new stake in shares of Mister Car Wash in the 4th quarter worth about $81,000. Finally, BNP Paribas Financial Markets acquired a new stake in shares of Mister Car Wash in the 4th quarter worth about $96,000.

About Mister Car Wash

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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