Mueller Industries (NYSE:MLI) Trading 9% Higher After Better-Than-Expected Earnings

Key Points

• Shares jumped ~9% after Mueller reported quarterly EPS of $2.16 versus a $1.49 consensus, pushing the stock from a $120.90 close to about $131.78 intraday.
• Dividend increase: Mueller raised its quarterly payout to $0.35 (from $0.25), implying $1.40 annually, a 1.1% yield and a 20.38% payout ratio.
• Institutional accumulation and insider activity: Large funds (AQR, Norges Bank, UBS, Pictet, Goldman) substantially increased positions and institutions own ~94.5% of shares, while insiders have recently sold modest stakes and own about 2.3%.

Mueller Industries, Inc. (NYSE:MLI - Get Free Report)'s share price shot up 9% on Tuesday after the company announced better than expected quarterly earnings. The company traded as high as $131.24 and last traded at $131.7830. 136,972 shares changed hands during mid-day trading, a decline of 83% from the average session volume of 806,179 shares. The stock had previously closed at $120.90.

The industrial products company reported $2.16 EPS for the quarter, topping the consensus estimate of $1.49 by $0.67. Mueller Industries had a net margin of 18.31% and a return on equity of 24.70%.

Mueller Industries Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, March 27th. Investors of record on Friday, March 13th were paid a dividend of $0.35 per share. The ex-dividend date was Friday, March 13th. This is a positive change from Mueller Industries's previous quarterly dividend of $0.25. This represents a $1.40 dividend on an annualized basis and a dividend yield of 1.1%. Mueller Industries's payout ratio is currently 20.38%.

Analyst Ratings Changes

MLI has been the topic of a number of recent analyst reports. Weiss Ratings reissued a "buy (b)" rating on shares of Mueller Industries in a research report on Thursday, January 22nd. Wall Street Zen downgraded shares of Mueller Industries from a "buy" rating to a "hold" rating in a research note on Saturday, February 7th. One research analyst has rated the stock with a Buy rating, According to MarketBeat.com, Mueller Industries currently has a consensus rating of "Buy".

Insiders Place Their Bets

In other Mueller Industries news, Director Scott Jay Goldman sold 4,430 shares of the company's stock in a transaction on Friday, February 13th. The shares were sold at an average price of $118.97, for a total value of $527,037.10. Following the completion of the transaction, the director owned 41,645 shares in the company, valued at $4,954,505.65. This represents a 9.61% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director John B. Hansen sold 1,000 shares of Mueller Industries stock in a transaction dated Monday, February 9th. The stock was sold at an average price of $116.71, for a total value of $116,710.00. Following the sale, the director owned 90,664 shares in the company, valued at $10,581,395.44. This trade represents a 1.09% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 2.30% of the stock is owned by insiders.

Institutional Trading of Mueller Industries

Institutional investors and hedge funds have recently bought and sold shares of the business. AQR Capital Management LLC raised its holdings in shares of Mueller Industries by 181.4% in the third quarter. AQR Capital Management LLC now owns 2,585,693 shares of the industrial products company's stock valued at $261,439,000 after buying an additional 1,666,891 shares during the last quarter. Norges Bank acquired a new position in Mueller Industries in the 4th quarter valued at about $171,281,000. UBS Group AG raised its stake in Mueller Industries by 837.0% during the 3rd quarter. UBS Group AG now owns 1,283,943 shares of the industrial products company's stock valued at $129,819,000 after acquiring an additional 1,146,919 shares during the last quarter. Pictet Asset Management Holding SA lifted its position in Mueller Industries by 4,700.0% during the 4th quarter. Pictet Asset Management Holding SA now owns 708,099 shares of the industrial products company's stock worth $81,581,000 after acquiring an additional 693,347 shares during the period. Finally, Goldman Sachs Group Inc. lifted its position in Mueller Industries by 36.8% during the 4th quarter. Goldman Sachs Group Inc. now owns 2,528,013 shares of the industrial products company's stock worth $290,216,000 after acquiring an additional 679,958 shares during the period. Hedge funds and other institutional investors own 94.50% of the company's stock.

Mueller Industries Trading Up 10.2%

The company has a market capitalization of $14.73 billion, a PE ratio of 19.39 and a beta of 1.07. The firm has a 50 day simple moving average of $115.73 and a two-hundred day simple moving average of $114.39.

About Mueller Industries

Mueller Industries, Inc is a diversified manufacturer and marketer of copper, brass, aluminum and plastic products. Headquartered in Memphis, Tennessee, the company serves a wide range of markets including HVAC (heating, ventilation and air conditioning), refrigeration, plumbing, industrial gas, automotive and agricultural sectors. Its product portfolio encompasses copper and plastic tubing, brass fittings, valves and related components designed for fluid handling and temperature control applications.

The company operates through multiple business segments, including the Plumbing & Refrigeration segment, which supplies copper and plastic tubing, fittings and valves for residential and commercial construction markets; the Industrial Metals & Mining segment, which provides aluminum shapes and specialty brass products for industrial applications; and the Climate segment, which focuses on copper tubing and components for air conditioning and refrigeration systems.

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