Middleby (NASDAQ:MIDD) Shares Gap Down Following Weak Earnings

The Middleby Co. (NASDAQ:MIDD)’s share price gapped down prior to trading on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $140.38, but opened at $129.93. Middleby shares last traded at $130.61, with a volume of 379,063 shares trading hands.

The industrial products company reported $2.33 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.48 by ($0.15). Middleby had a net margin of 9.90% and a return on equity of 15.25%. The firm had revenue of $942.81 million for the quarter, compared to analyst estimates of $996.60 million. During the same period in the previous year, the firm earned $2.35 earnings per share. The company’s revenue for the quarter was down 3.9% on a year-over-year basis.

Analysts Set New Price Targets

Several analysts have weighed in on the company. Robert W. Baird lifted their target price on Middleby from $155.00 to $169.00 and gave the company an “outperform” rating in a research note on Friday, August 2nd. JPMorgan Chase & Co. lifted their price objective on shares of Middleby from $118.00 to $120.00 and gave the company an “underweight” rating in a research note on Friday, August 2nd. KeyCorp decreased their target price on shares of Middleby from $175.00 to $160.00 and set an “overweight” rating for the company in a research report on Monday, July 15th. Canaccord Genuity Group reaffirmed a “buy” rating and issued a $164.00 price target on shares of Middleby in a research note on Saturday, September 14th. Finally, Canaccord Genuity Group lowered their price objective on shares of Middleby from $164.00 to $155.00 and set a “buy” rating on the stock in a research note on Friday. One analyst has rated the stock with a sell rating, two have given a hold rating and five have given a buy rating to the company’s stock. Based on data from MarketBeat.com, Middleby has a consensus rating of “Moderate Buy” and an average price target of $154.67.

Institutional Trading of Middleby

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Allspring Global Investments Holdings LLC grew its position in Middleby by 1,246.2% in the first quarter. Allspring Global Investments Holdings LLC now owns 175 shares of the industrial products company’s stock worth $28,000 after buying an additional 162 shares during the last quarter. Quarry LP boosted its stake in shares of Middleby by 133.3% during the 2nd quarter. Quarry LP now owns 231 shares of the industrial products company’s stock worth $28,000 after acquiring an additional 132 shares in the last quarter. GAMMA Investing LLC grew its holdings in shares of Middleby by 97.7% in the 2nd quarter. GAMMA Investing LLC now owns 255 shares of the industrial products company’s stock worth $31,000 after acquiring an additional 126 shares during the last quarter. Covestor Ltd lifted its holdings in shares of Middleby by 306.5% during the third quarter. Covestor Ltd now owns 252 shares of the industrial products company’s stock valued at $35,000 after purchasing an additional 190 shares during the last quarter. Finally, UMB Bank n.a. lifted its holdings in shares of Middleby by 93.2% during the third quarter. UMB Bank n.a. now owns 282 shares of the industrial products company’s stock valued at $39,000 after purchasing an additional 136 shares during the last quarter. 98.55% of the stock is currently owned by institutional investors.

Middleby Price Performance

The stock has a 50 day moving average of $136.96 and a two-hundred day moving average of $133.74. The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.43 and a current ratio of 2.50. The stock has a market cap of $7.00 billion, a PE ratio of 18.20 and a beta of 1.58.

About Middleby

The Middleby Corporation designs, markets, manufactures, distributes, and services foodservice, food processing, and residential kitchen equipment worldwide. Its Commercial Foodservice Equipment Group segment offers conveyor, combi, convection, baking, proofing, deck, speed cooking, and hydrovection ovens; ranges, fryers, and rethermalizers; steam cooking, food warming, catering, induction cooking, and countertop cooking equipment; heated cabinets, charbroilers, ventless cooking systems, kitchen ventilation, toasters, griddles, charcoal grills, professional mixers, stainless steel fabrication, custom millwork, professional refrigerators, blast chillers, cold rooms, ice machines, and freezers; soft serve ice cream, coffee and beverage dispensing, home and professional craft brewing equipment; and fry dispensers, bottle filling and canning equipment, IoT solutions, and controls development and manufacturing.