Monro Muffler Brake (NASDAQ:MNRO) Shares Cross Below Fifty Day Moving Average After Earnings Miss

Key Points

• Monro Muffler Brake shares fell below their 50-day moving average after the company reported a quarterly loss of $0.01 per share, missing the $0.05 consensus estimate. Revenue declined 1.8% year over year to $283.64 million, slightly below expectations.
• The company declared a quarterly dividend of $0.28 per share, equivalent to a 9.1% annualized yield. However, its payout ratio stands at an unusually high 509.09%.
• Analyst sentiment remains mixed but centers on a “Hold” rating, with a consensus price target of $24.00. Recent firms lowered price targets, while institutional investors including Cygnus Capital Advisors increased their positions.

Monro Muffler Brake, Inc. (NASDAQ:MNRO - Get Free Report)'s stock price crossed below its 50-day moving average during trading on Thursday following a dissappointing earnings announcement. The stock has a 50-day moving average of $13.29 and traded as low as $11.62. Monro Muffler Brake shares last traded at $12.30, with a volume of 2,113,518 shares changing hands.

The auto parts company reported ($0.01) earnings per share for the quarter, missing the consensus estimate of $0.05 by ($0.06). The firm had revenue of $283.64 million during the quarter, compared to the consensus estimate of $284.06 million. Monro Muffler Brake had a net margin of 0.71% and a return on equity of 0.80%. The company's revenue for the quarter was down 1.8% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.21 earnings per share.

Monro Muffler Brake Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 8th. Stockholders of record on Tuesday, August 25th were issued a dividend of $0.28 per share. This represents a $1.12 dividend on an annualized basis and a dividend yield of 9.1%. The ex-dividend date of this dividend was Tuesday, August 25th. Monro Muffler Brake's payout ratio is 509.09%.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on MNRO. Weiss Ratings lowered Monro Muffler Brake from a "hold (c-)" rating to a "sell (d+)" rating in a report on Tuesday, September 29th. Wall Street Zen downgraded Monro Muffler Brake from a "sell" rating to a "strong sell" rating in a research note on Saturday, August 1st. Zacks Research upgraded Monro Muffler Brake from a "strong sell" rating to a "hold" rating in a research report on Monday, October 5th. Stephens decreased their price target on Monro Muffler Brake from $20.00 to $17.00 and set an "overweight" rating for the company in a research note on Thursday, July 30th. Finally, Wells Fargo & Company lowered their price target on Monro Muffler Brake from $16.00 to $15.00 and set an "equal weight" rating on the stock in a report on Friday, October 23rd. Two equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $24.00.

Hedge Funds Weigh In On Monro Muffler Brake

A number of institutional investors and hedge funds have recently added to or reduced their stakes in MNRO. Cygnus Capital Advisors LLC raised its stake in shares of Monro Muffler Brake by 826.1% in the 2nd quarter. Cygnus Capital Advisors LLC now owns 304,495 shares of the auto parts company's stock worth $5,209,000 after buying an additional 271,615 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. bought a new position in Monro Muffler Brake during the third quarter valued at about $77,000. Stillwater Wealth Management Group bought a new position in Monro Muffler Brake during the third quarter valued at about $162,000. Baird Financial Group Inc. bought a new position in Monro Muffler Brake during the second quarter valued at about $207,000. Finally, Penn Capital Management Company LLC grew its holdings in Monro Muffler Brake by 31.9% during the second quarter. Penn Capital Management Company LLC now owns 62,577 shares of the auto parts company's stock worth $1,071,000 after acquiring an additional 15,146 shares during the period.

Monro Muffler Brake Trading Down 14.0%

The business has a fifty day moving average of $13.29 and a 200-day moving average of $16.15. The stock has a market capitalization of $384.50 million, a price-to-earnings ratio of 55.91, a price-to-earnings-growth ratio of 11.92 and a beta of 1.08. The company has a debt-to-equity ratio of 0.50, a current ratio of 0.49 and a quick ratio of 0.16.

About Monro Muffler Brake

Monro Muffler Brake, Inc, doing business as Monro, is an automotive service and tire retailer headquartered in Rochester, New York. The company operates service centers across the United States under brands that include Monro Auto Service and Tire, Mr. Tire, Tire Choice, Car-X, and other regional names.

Monro provides replacement tires and a broad range of maintenance and repair services for passenger vehicles and light trucks. Its offerings include brake and exhaust work, wheel alignment, steering and suspension repairs, shocks and struts, oil changes, batteries, air-conditioning service, and other preventive maintenance.

Founded in 1957 as a single muffler shop in Rochester, the company expanded through organic growth and acquisitions into a nationwide automotive service network.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.