Mueller Industries (NYSE:MLI) Shares Gap Down Following Weak Earnings

Mueller Industries, Inc. (NYSE:MLI)’s share price gapped down before the market opened on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $60.82, but opened at $57.99. Mueller Industries shares last traded at $56.8710, with a volume of 148,001 shares changing hands.

The industrial products company reported $1.00 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.08 by ($0.08). Mueller Industries had a return on equity of 25.68% and a net margin of 18.25%. During the same period in the previous year, the company posted $1.88 earnings per share. The firm’s revenue for the quarter was up 31.6% on a year-over-year basis.

Mueller Industries Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, September 18th. Investors of record on Friday, September 4th were given a dividend of $0.1750 per share. This represents a $0.70 annualized dividend and a yield of 1.2%. The ex-dividend date was Friday, September 4th. Mueller Industries’s payout ratio is presently 18.23%.

Analyst Ratings Changes

Several research firms have weighed in on MLI. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Mueller Industries in a report on Thursday. Northcoast Research upgraded Mueller Industries from a “neutral” rating to a “buy” rating and set a $75.00 price target for the company in a research report on Thursday, July 16th. Finally, Wall Street Zen lowered Mueller Industries from a “strong-buy” rating to a “buy” rating in a report on Saturday, July 25th. Two investment analysts have rated the stock with a Buy rating. According to data from MarketBeat.com, the stock has an average rating of “Buy” and an average price target of $75.00.

Insider Activity at Mueller Industries

In other Mueller Industries news, CEO Gregory L. Christopher sold 200,000 shares of Mueller Industries stock in a transaction dated Tuesday, August 11th. The stock was sold at an average price of $68.44, for a total transaction of $13,688,000.00. Following the completion of the sale, the chief executive officer owned 1,598,850 shares of the company’s stock, valued at $109,425,294. The trade was a 11.12% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director John B. Hansen sold 2,444 shares of the company’s stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $67.72, for a total value of $165,507.68. Following the completion of the transaction, the director owned 181,328 shares of the company’s stock, valued at $12,279,532.16. The trade was a 1.33% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 275,444 shares of company stock valued at $18,885,398 over the last 90 days. 2.30% of the stock is owned by insiders.

Hedge Funds Weigh In On Mueller Industries

Institutional investors have recently modified their holdings of the company. BlackRock Inc. purchased a new stake in Mueller Industries in the 2nd quarter worth approximately $1,437,555,000. William Blair Investment Management LLC purchased a new position in shares of Mueller Industries during the second quarter valued at approximately $244,156,000. Bank of New York Mellon Corp purchased a new position in shares of Mueller Industries during the second quarter valued at approximately $131,286,000. Pictet Asset Management Holding SA increased its stake in shares of Mueller Industries by 136.5% during the first quarter. Pictet Asset Management Holding SA now owns 1,674,939 shares of the industrial products company’s stock valued at $185,561,000 after buying an additional 966,840 shares during the period. Finally, Jupiter Topco LLC bought a new position in shares of Mueller Industries during the second quarter valued at approximately $95,120,000. 94.50% of the stock is currently owned by institutional investors.

Mueller Industries Stock Down 7.3%

The company has a market cap of $12.47 billion, a P/E ratio of 14.68 and a beta of 1.08. The business has a fifty day moving average of $62.19 and a 200 day moving average of $63.57.

Mueller Industries Company Profile

Mueller Industries, Inc is a manufacturer of metal and plastic products used in plumbing, heating, ventilation, air conditioning, refrigeration, fire protection, water distribution, and industrial applications. Its product portfolio includes copper, brass, aluminum, and steel tubing; fittings; valves; copper and plastic piping systems; and related components.

The company sells products primarily through wholesale distributors, original equipment manufacturers, building-supply outlets, and other industrial channels.