Wells Fargo & Company Upgrades MDU Resources Group (NYSE:MDU) to Strong-Buy

Key Points

• Wells Fargo upgraded MDU Resources Group to a strong-buy rating, giving the stock a fresh bullish note from one major analyst firm.
• Despite the upgrade, the broader analyst view remains cautious: MDU now has an average rating of Hold and an average price target of $22.40, with most analysts still rating it a hold.
• MDU shares were up 1.5% in Monday trading, opening at $21.29, after the company recently reported Q1 earnings of $0.39 per share, which missed expectations and came with revenue down 10.2% year over year.

MDU Resources Group (NYSE:MDU - Get Free Report) was upgraded by investment analysts at Wells Fargo & Company to a "strong-buy" rating in a report issued on Monday,Zacks.com reports.

Other analysts also recently issued reports about the stock. JPMorgan Chase & Co. started coverage on shares of MDU Resources Group in a report on Thursday, April 16th. They issued a "neutral" rating and a $22.00 price objective on the stock. TD Cowen increased their target price on shares of MDU Resources Group to $22.00 and gave the stock a "hold" rating in a report on Friday, May 15th. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of MDU Resources Group in a research report on Wednesday, July 8th. One investment analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and an average target price of $22.40.

MDU Resources Group Stock Up 1.5%

NYSE:MDU opened at $21.29 on Monday. The company has a debt-to-equity ratio of 0.82, a quick ratio of 0.75 and a current ratio of 0.78. The company has a market cap of $4.36 billion, a PE ratio of 23.14, a PEG ratio of 3.88 and a beta of 0.67. MDU Resources Group has a 52-week low of $15.76 and a 52-week high of $22.98. The stock has a 50-day simple moving average of $21.51 and a 200 day simple moving average of $21.01.

MDU Resources Group (NYSE:MDU - Get Free Report) last announced its earnings results on Thursday, May 7th. The utilities provider reported $0.39 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.42 by ($0.03). MDU Resources Group had a net margin of 10.47% and a return on equity of 6.82%. The firm had revenue of $605.98 million during the quarter, compared to analyst estimates of $688.34 million. During the same period in the prior year, the business posted $0.40 EPS. The firm's quarterly revenue was down 10.2% compared to the same quarter last year. MDU Resources Group has set its FY 2026 guidance at 0.930-1.000 EPS. On average, sell-side analysts expect that MDU Resources Group will post 0.98 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of MDU. GoalVest Advisory LLC bought a new stake in shares of MDU Resources Group during the 4th quarter worth approximately $26,000. Flagship Harbor Advisors LLC bought a new position in shares of MDU Resources Group in the fourth quarter valued at $27,000. Geneos Wealth Management Inc. increased its holdings in MDU Resources Group by 94.5% during the second quarter. Geneos Wealth Management Inc. now owns 1,647 shares of the utilities provider's stock worth $27,000 after buying an additional 800 shares during the last quarter. Caitong International Asset Management Co. Ltd increased its holdings in MDU Resources Group by 6,404.3% during the third quarter. Caitong International Asset Management Co. Ltd now owns 1,496 shares of the utilities provider's stock worth $27,000 after buying an additional 1,473 shares during the last quarter. Finally, Global Retirement Partners LLC raised its position in MDU Resources Group by 13,185.7% during the fourth quarter. Global Retirement Partners LLC now owns 1,860 shares of the utilities provider's stock worth $36,000 after acquiring an additional 1,846 shares in the last quarter. 71.44% of the stock is currently owned by institutional investors.

About MDU Resources Group

MDU Resources Group, Inc is a diversified energy and services holding company headquartered in Bismarck, North Dakota. The company operates through two primary segments: Utilities and Construction Services and Pipelines & Midstream. Serving a broad geographic footprint across the upper Midwest and Pacific Northwest, MDU provides essential energy distribution and infrastructure services to residential, commercial and industrial customers.

The Utilities segment delivers electric and natural gas distribution services in Montana, North Dakota, South Dakota, Minnesota, Kansas, Wisconsin, Michigan and Washington.

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