MGP Ingredients (NASDAQ:MGPI) Downgraded to Strong Sell Rating by Zacks Research

Zacks Research cut shares of MGP Ingredients (NASDAQ:MGPI) from a hold rating to a strong sell rating in a research note issued to investors on Monday morning,Zacks.com reports.

Other analysts also recently issued reports about the company. TD Cowen reduced their price objective on MGP Ingredients from $27.00 to $24.00 and set a “hold” rating for the company in a research note on Thursday, January 8th. Wall Street Zen cut MGP Ingredients from a “buy” rating to a “hold” rating in a research note on Sunday. Weiss Ratings reiterated a “sell (d)” rating on shares of MGP Ingredients in a research report on Wednesday, October 8th. Finally, Wells Fargo & Company dropped their price objective on shares of MGP Ingredients from $33.00 to $29.00 and set an “overweight” rating on the stock in a research note on Monday, January 5th. Three analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, MGP Ingredients presently has an average rating of “Hold” and a consensus price target of $33.25.

MGP Ingredients Stock Performance

NASDAQ:MGPI traded up $0.41 during trading hours on Monday, reaching $24.96. 124,750 shares of the company’s stock were exchanged, compared to its average volume of 234,951. MGP Ingredients has a 1-year low of $21.67 and a 1-year high of $38.11. The company has a quick ratio of 0.69, a current ratio of 2.78 and a debt-to-equity ratio of 0.31. The firm has a market capitalization of $531.40 million, a price-to-earnings ratio of -37.37 and a beta of 0.37. The company has a 50-day moving average of $24.40 and a 200 day moving average of $26.61.

MGP Ingredients (NASDAQ:MGPI) last posted its quarterly earnings data on Wednesday, October 29th. The company reported $0.85 EPS for the quarter, beating analysts’ consensus estimates of $0.62 by $0.23. MGP Ingredients had a negative net margin of 2.56% and a positive return on equity of 9.65%. The company had revenue of $130.91 million for the quarter, compared to analyst estimates of $128.33 million. During the same period in the previous year, the business posted $1.29 earnings per share. MGP Ingredients’s quarterly revenue was down 18.9% on a year-over-year basis. MGP Ingredients has set its FY 2025 guidance at 2.600-2.750 EPS. Research analysts anticipate that MGP Ingredients will post 5.56 EPS for the current year.

MGP Ingredients Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, November 28th. Shareholders of record on Friday, November 14th were given a dividend of $0.12 per share. This represents a $0.48 annualized dividend and a yield of 1.9%. The ex-dividend date was Friday, November 14th. MGP Ingredients’s dividend payout ratio is presently -71.64%.

Insider Buying and Selling

In related news, major shareholder Caroline Lux Kaplan sold 30,000 shares of MGP Ingredients stock in a transaction on Tuesday, November 18th. The stock was sold at an average price of $23.85, for a total transaction of $715,500.00. Following the completion of the transaction, the insider directly owned 560,958 shares of the company’s stock, valued at approximately $13,378,848.30. The trade was a 5.08% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, Director Karen Seaberg sold 81,616 shares of the company’s stock in a transaction on Wednesday, December 10th. The shares were sold at an average price of $25.84, for a total value of $2,108,957.44. Following the completion of the sale, the director directly owned 35,285 shares in the company, valued at $911,764.40. This trade represents a 69.82% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 334,535 shares of company stock worth $8,224,668. Insiders own 34.40% of the company’s stock.

Hedge Funds Weigh In On MGP Ingredients

Several hedge funds have recently added to or reduced their stakes in MGPI. AQR Capital Management LLC purchased a new stake in shares of MGP Ingredients in the first quarter valued at about $735,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in shares of MGP Ingredients by 4.8% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 8,446 shares of the company’s stock worth $248,000 after purchasing an additional 390 shares during the last quarter. Millennium Management LLC lifted its stake in MGP Ingredients by 116.6% in the 1st quarter. Millennium Management LLC now owns 359,813 shares of the company’s stock valued at $10,571,000 after buying an additional 193,660 shares in the last quarter. Goldman Sachs Group Inc. lifted its stake in MGP Ingredients by 10.0% in the 1st quarter. Goldman Sachs Group Inc. now owns 158,879 shares of the company’s stock valued at $4,668,000 after buying an additional 14,501 shares in the last quarter. Finally, Rhumbline Advisers grew its holdings in MGP Ingredients by 24.9% during the 1st quarter. Rhumbline Advisers now owns 51,780 shares of the company’s stock valued at $1,521,000 after buying an additional 10,316 shares during the last quarter. 77.11% of the stock is currently owned by hedge funds and other institutional investors.

About MGP Ingredients

MGP Ingredients, Inc (NASDAQ: MGPI) is a leading producer of distilled spirits and specialty ingredient solutions for the food, beverage and consumer products industries. Headquartered in Atchison, Kansas, the company operates two main facilities—its historic Atchison plant, founded in 1941 as Midwest Grain Products, and a modern distillery in Lawrenceburg, Indiana. MGP Ingredients supplies an array of distillation products under its beverage and ingredient segments, serving brand owners, private-label producers and co-packers worldwide.

The beverage segment features a broad portfolio of premium spirits, including bourbon and rye whiskies, vodka, gin and neutral spirits.