MGP Ingredients (NASDAQ:MGPI) Stock Breaks Below 200-Day Moving Average - Should You Sell?

Key Points

• MGP Ingredients shares fell below their 200-day moving average of $17.14, reaching as low as $13.53 before last trading at $14.36.
• Analyst sentiment is mixed but leans cautious: MarketBeat reports a consensus “Hold” rating, with an average price target of $26.00. Wells Fargo cut its target to $17, while TD Cowen raised its target to $20.
• The company beat quarterly EPS expectations, reporting $0.72 versus the $0.49 consensus estimate, but revenue declined 14.5% year over year and net margin remained negative. MGP also pays a quarterly dividend of $0.12, yielding about 3.3% annually.

MGP Ingredients, Inc. (NASDAQ:MGPI - Get Free Report) shares crossed below its two hundred day moving average during trading on Monday. The stock has a two hundred day moving average of $17.14 and traded as low as $13.53. MGP Ingredients shares last traded at $14.36, with a volume of 237,202 shares.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on MGPI shares. Wells Fargo & Company decreased their price target on MGP Ingredients from $22.00 to $17.00 and set an "overweight" rating for the company in a research note on Monday, October 5th. Weiss Ratings reiterated a "sell (d-)" rating on shares of MGP Ingredients in a research report on Friday, July 31st. Finally, TD Cowen boosted their price objective on MGP Ingredients from $18.00 to $20.00 and gave the stock a "hold" rating in a research note on Thursday, July 30th. Three analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, MGP Ingredients presently has a consensus rating of "Hold" and an average target price of $26.00.

MGP Ingredients Trading Up 4.2%

The firm has a market capitalization of $307.45 million, a price-to-earnings ratio of -1.28 and a beta of 0.49. The firm's 50 day moving average is $15.57 and its 200 day moving average is $17.14. The company has a quick ratio of 1.65, a current ratio of 6.99 and a debt-to-equity ratio of 0.61.

MGP Ingredients (NASDAQ:MGPI - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The company reported $0.72 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.49 by $0.23. The firm had revenue of $124.36 million for the quarter, compared to analyst estimates of $125.16 million. MGP Ingredients had a negative net margin of 48.08% and a positive return on equity of 7.41%. The firm's quarterly revenue was down 14.5% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.97 earnings per share. MGP Ingredients has set its FY 2026 guidance at 1.500-1.800 EPS. Equities analysts forecast that MGP Ingredients, Inc. will post 1.65 earnings per share for the current year.

MGP Ingredients Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, August 28th. Investors of record on Friday, August 14th were given a $0.12 dividend. The ex-dividend date was Friday, August 14th. This represents a $0.48 dividend on an annualized basis and a dividend yield of 3.3%. MGP Ingredients's dividend payout ratio (DPR) is -4.26%.

Insider Buying and Selling

In other MGP Ingredients news, insider Leslie Lux sold 27,731 shares of MGP Ingredients stock in a transaction that occurred on Wednesday, September 16th. The shares were sold at an average price of $14.40, for a total transaction of $399,326.40. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, insider Paul Lux sold 33,000 shares of the firm's stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $17.76, for a total value of $586,080.00. Following the sale, the insider owned 550,458 shares of the company's stock, valued at $9,776,134.08. The trade was a 5.66% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 31.70% of the stock is owned by insiders.

Institutional Trading of MGP Ingredients

Several large investors have recently added to or reduced their stakes in the business. Legal & General Group Plc acquired a new stake in shares of MGP Ingredients in the second quarter worth $28,000. GAMMA Investing LLC lifted its position in MGP Ingredients by 334.0% during the 3rd quarter. GAMMA Investing LLC now owns 2,439 shares of the company's stock worth $32,000 after acquiring an additional 1,877 shares during the last quarter. Quantinno Capital Management LP boosted its holdings in MGP Ingredients by 9.6% during the first quarter. Quantinno Capital Management LP now owns 25,340 shares of the company's stock valued at $466,000 after acquiring an additional 2,215 shares during the period. Global Retirement Partners LLC bought a new stake in MGP Ingredients during the second quarter valued at about $55,000. Finally, Villanova Investment Management Co LLC boosted its holdings in MGP Ingredients by 7.2% during the fourth quarter. Villanova Investment Management Co LLC now owns 78,583 shares of the company's stock valued at $1,910,000 after acquiring an additional 5,258 shares during the period. 77.11% of the stock is owned by institutional investors.

MGP Ingredients Company Profile

MGP Ingredients, Inc NASDAQ: MGPI is a food and beverage company headquartered in Atchison, Kansas. The company develops and produces distilled spirits, specialty wheat proteins, and specialty starches for consumer brands, food manufacturers, and other commercial customers.

Through its branded spirits business, MGP offers a portfolio of bourbon, rye whiskey, American whiskey, vodka, gin, and other distilled products. Its brands include Lux Row Distillers' Ezra Brooks, Daviess County, and Yellowstone Bourbon, as well as Remus Repeal Reserve.

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