Roth Capital Lowers Q1 EPS Estimates for MGP Ingredients

On December 23rd, 2024, analysts at Roth Capital revised their earnings per share (EPS) estimates for MGP Ingredients, Inc. (NASDAQ:MGPI). The new forecast predicts an EPS of $0.50 for the first quarter of 2025, a decrease from the previous estimate of $0.79. The analysts' adjustments also indicated the full-year EPS for MGP Ingredients is expected to be around $5.57.

Furthermore, Roth Capital provided estimates for subsequent quarters in 2025 and 2026. They project EPS of $0.76 for Q2 2025, $0.73 for Q3 2025, and $1.00 for Q4 2025, culminating in an annual EPS of $3.00 for FY2025. Looking ahead, the estimated EPS for Q2 2026 is set at $1.14, with $1.03 for Q3 2026, bringing the FY2026 total to approximately $4.36.

Analyst Ratings for MGP Ingredients

Other financial analysts have also assessed MGP Ingredients. Truist Financial adjusted their price target for the stock from $85.00 to $75.00 while maintaining a “buy” rating. Meanwhile, TD Cowen downgraded the stock from “buy” to “hold” and lowered their price target from $66.00 to $50.00. StockNews.com shifted their rating on MGP Ingredients from “sell” to “hold” as of November 1st. Additionally, Lake Street Capital revised their rating from “buy” to “hold,” lowering their price target from $135.00 to $75.00. Subsequently, Roth Mkm released a report diminishing their price target from $65.00 to $60.00, still classifying the stock as a “buy.” Overall, there are three analysts recommending a hold and three suggesting a buy for MGP Ingredients stock, leading to a consensus rating of “Moderate Buy” with an average target price of $75.83 according to MarketBeat data.

MGP Ingredients Stock Overview

The stock of MGP Ingredients began trading at $39.85 on the Wednesday following the revisions. The company has a debt-to-equity ratio of 0.31, a quick ratio of 1.94, and a current ratio of 6.46. MGP Ingredients boasts a market capitalization of $874.83 million, with a price-to-earnings ratio of 8.28 and a PEG ratio of 0.74. Its stock price has fluctuated between a one-year low of $38.65 and a one-year high of $102.42, with 50-day and 200-day moving averages of $49.71 and $69.93, respectively.

Recent Quarterly Earnings and Dividends

MGP Ingredients last reported quarterly earnings on October 31st, showing an EPS of $1.29, which outperformed the consensus estimate of $1.27 by $0.02. The company's net margin stood at 14.44%, with a return on equity of 14.39%. Revenue for the quarter was reported at $161.50 million, slightly below analyst estimates of $161.55 million, and it marked a 23.7% decline from the same quarter in the previous year.

In addition to the earnings report, MGP Ingredients announced a quarterly dividend of $0.12 per share, which was distributed on November 29th. The dividend, which holds an annualized value of $0.48, translates to a yield of 1.20%, with a payout ratio of approximately 9.98%.

Recent Insider Activity and Institutional Holdings

In corporate news, Director Lori L.S. Mingus sold 7,050 shares of MGP stock on November 19th for an average price of $46.03, totaling $324,511.50. After this sale, she possesses 37,373 shares valued at about $1,720,279. Insiders currently hold 36.20% of MGP Ingredients’ stock. On the institutional side, several large investors have recently altered their stakes in MGP Ingredients. Notably, World Investment Advisors LLC acquired a new position worth $6,100,000, while Virtu Financial LLC purchased shares worth $373,000 during the third quarter. Additionally, MML Investors Services LLC increased its stake in the company by 28.2% during the same period. Overall, institutional investors command a substantial 77.11% ownership of the company's stock.

About MGP Ingredients

MGP Ingredients, Inc. operates in the production and supply of distilled spirits, branded spirits, and food ingredients, catering to both the United States and international markets. The company functions through three primary segments: Distillery Solutions, Branded Spirits, and Ingredient Solutions.

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