MGP Ingredients (NASDAQ:MGPI) Sees Large Volume Increase Following Strong Earnings

MGP Ingredients, Inc. (NASDAQ:MGPI) shares saw unusually-high trading volume on Thursday following a stronger than expected earnings report. Approximately 394,024 shares were traded during trading, an increase of 78% from the previous session’s volume of 221,527 shares.The stock last traded at $51.02 and had previously closed at $56.31.

The company reported $1.29 earnings per share for the quarter, topping analysts’ consensus estimates of $1.27 by $0.02. MGP Ingredients had a return on equity of 14.98% and a net margin of 12.18%. The business had revenue of $161.50 million for the quarter, compared to analyst estimates of $161.55 million. During the same quarter in the previous year, the company posted $1.34 EPS. MGP Ingredients’s quarterly revenue was down 23.7% compared to the same quarter last year.

MGP Ingredients Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, November 29th. Shareholders of record on Friday, November 15th will be given a $0.12 dividend. The ex-dividend date of this dividend is Friday, November 15th. This represents a $0.48 dividend on an annualized basis and a dividend yield of 1.05%. MGP Ingredients’s dividend payout ratio (DPR) is presently 9.98%.

Analysts Set New Price Targets

A number of equities research analysts have commented on the company. StockNews.com upgraded MGP Ingredients from a “sell” rating to a “hold” rating in a research report on Friday. Truist Financial reduced their price target on MGP Ingredients from $85.00 to $75.00 and set a “buy” rating on the stock in a research report on Friday. Lake Street Capital lowered MGP Ingredients from a “buy” rating to a “hold” rating and cut their target price for the company from $135.00 to $75.00 in a research report on Friday, October 18th. Loop Capital set a $75.00 target price on MGP Ingredients in a research report on Friday, October 18th. Finally, Roth Mkm cut their target price on MGP Ingredients from $92.00 to $88.00 and set a “buy” rating on the stock in a research report on Friday, October 18th. Two research analysts have rated the stock with a hold rating and three have assigned a buy rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $86.60.

Insider Buying and Selling

In related news, Director Karen Seaberg sold 1,109 shares of the company’s stock in a transaction that occurred on Wednesday, September 4th. The stock was sold at an average price of $90.14, for a total transaction of $99,965.26. Following the transaction, the director now directly owns 134,969 shares of the company’s stock, valued at approximately $12,166,105.66. This represents a 0.00 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 36.20% of the stock is owned by company insiders.

Institutional Trading of MGP Ingredients

Several institutional investors and hedge funds have recently modified their holdings of MGPI. Vanguard Group Inc. raised its stake in shares of MGP Ingredients by 2.9% in the fourth quarter. Vanguard Group Inc. now owns 1,126,323 shares of the company’s stock worth $110,965,000 after purchasing an additional 31,839 shares during the last quarter. Norden Group LLC purchased a new stake in shares of MGP Ingredients during the first quarter valued at approximately $261,000. Janney Montgomery Scott LLC purchased a new stake in shares of MGP Ingredients during the first quarter valued at approximately $495,000. FORA Capital LLC purchased a new stake in shares of MGP Ingredients during the first quarter valued at approximately $287,000. Finally, Mutual of America Capital Management LLC increased its position in shares of MGP Ingredients by 239.2% during the first quarter. Mutual of America Capital Management LLC now owns 64,557 shares of the company’s stock valued at $5,560,000 after acquiring an additional 45,527 shares during the last quarter. 77.11% of the stock is owned by hedge funds and other institutional investors.

MGP Ingredients Stock Down 5.2 %

The company has a quick ratio of 2.22, a current ratio of 6.44 and a debt-to-equity ratio of 0.34. The company has a market capitalization of $1.00 billion, a PE ratio of 9.46, a P/E/G ratio of 0.92 and a beta of 0.59. The stock has a 50-day moving average of $78.66 and a 200 day moving average of $78.64.

About MGP Ingredients

MGP Ingredients, Inc, together with its subsidiaries, engages in the production and supply of distilled spirits, branded spirits, and food ingredients in the United States and internationally. The company operates through three segments: Distillery Solutions; Branded Spirits; and Ingredient Solutions.