MGP Ingredients (NASDAQ:MGPI) Sees Strong Trading Volume After Better-Than-Expected Earnings

MGP Ingredients, Inc. (NASDAQ:MGPI) shares saw strong trading volume on Thursday following a stronger than expected earnings report. 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 (EPS) for the quarter, beating the consensus estimate of $1.27 by $0.02. MGP Ingredients had a return on equity of 14.98% and a net margin of 12.18%. The company 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 firm earned $1.34 earnings per share. The firm’s quarterly revenue was down 23.7% compared to the same quarter last year.

MGP Ingredients Dividend Announcement

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

Wall Street Analysts Forecast Growth

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

Insider Activity at MGP Ingredients

In related news, Director Karen Seaberg sold 12,092 shares of the stock in a transaction on Friday, August 23rd. The stock was sold at an average price of $90.65, for a total value of $1,096,139.80. Following the completion of the transaction, the director now directly owns 54,542 shares of the company’s stock, valued at approximately $4,944,232.30. This represents a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 36.20% of the stock is currently owned by corporate insiders.

Institutional Trading of MGP Ingredients

Several large investors have recently bought and sold shares of the business. CWM LLC raised its holdings in MGP Ingredients by 477.9% in the second quarter. CWM LLC now owns 393 shares of the company’s stock valued at $29,000 after acquiring an additional 325 shares in the last quarter. LRI Investments LLC purchased a new stake in shares of MGP Ingredients during the 1st quarter worth $43,000. Innealta Capital LLC acquired a new position in shares of MGP Ingredients during the second quarter worth $42,000. Farther Finance Advisors LLC increased its holdings in MGP Ingredients by 45.3% in the third quarter. Farther Finance Advisors LLC now owns 597 shares of the company’s stock valued at $50,000 after buying an additional 186 shares during the last quarter. Finally, Covestor Ltd raised its stake in MGP Ingredients by 23.3% in the first quarter. Covestor Ltd now owns 795 shares of the company’s stock valued at $68,000 after buying an additional 150 shares in the last quarter. Hedge funds and other institutional investors own 77.11% of the company’s stock.

MGP Ingredients Price Performance

The stock has a fifty day simple moving average of $78.66 and a 200-day simple moving average of $78.64. 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 company has a current ratio of 6.44, a quick ratio of 2.22 and a debt-to-equity ratio of 0.34.

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.