MGP Ingredients (MGPI) Stock Rating Lowered by Zacks Investment Research

Zacks Investment Research cut shares of MGP Ingredients (NASDAQ:MGPI) from a hold rating to a sell rating in a research note issued to investors on Wednesday.

According to Zacks, “MGP Ingredients, Inc. produces and markets ingredients and distillery products to the packaged goods industry. Its Distillery Products segment primarily offers food grade alcohol, fuel grade alcohol, and distillers feed. The company’s Ingredient Solutions segment primarily provides specialty wheat starches and proteins, commodity wheat starches, and commodity vital wheat gluten. MGP Ingredients, Inc. is headquartered in Atchison, Kansas. “

Other equities analysts have also issued research reports about the company. ValuEngine lowered MGP Ingredients from a buy rating to a hold rating in a research note on Monday, August 20th. BidaskClub lowered MGP Ingredients from a buy rating to a hold rating in a research note on Friday, October 26th. One investment analyst has rated the stock with a sell rating, three have given a hold rating and two have given a buy rating to the company. The stock has a consensus rating of Hold and a consensus price target of $87.33.

NASDAQ:MGPI traded down $0.65 during trading hours on Wednesday, hitting $68.78. The company had a trading volume of 140,301 shares, compared to its average volume of 192,177. The company has a quick ratio of 1.69, a current ratio of 5.07 and a debt-to-equity ratio of 0.23. The stock has a market cap of $1.16 billion, a P/E ratio of 36.78 and a beta of 1.13. MGP Ingredients has a 1 year low of $64.06 and a 1 year high of $99.73.

MGP Ingredients (NASDAQ:MGPI) last issued its earnings results on Thursday, November 1st. The company reported $0.52 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.51 by $0.01. The company had revenue of $95.00 million during the quarter, compared to analysts’ expectations of $93.08 million. MGP Ingredients had a return on equity of 19.23% and a net margin of 10.48%. The firm’s quarterly revenue was up 10.1% on a year-over-year basis. During the same period in the prior year, the business earned $0.82 EPS. On average, equities analysts anticipate that MGP Ingredients will post 2.03 earnings per share for the current year.

The firm also recently declared a quarterly dividend, which will be paid on Friday, November 30th. Stockholders of record on Thursday, November 15th will be paid a $0.08 dividend. This represents a $0.32 annualized dividend and a dividend yield of 0.47%. The ex-dividend date of this dividend is Wednesday, November 14th. MGP Ingredients’s dividend payout ratio (DPR) is presently 17.11%.

In other news, Director Karen Seaberg sold 11,175 shares of the company’s stock in a transaction on Tuesday, September 25th. The stock was sold at an average price of $78.33, for a total value of $875,337.75. Following the transaction, the director now owns 11,864 shares of the company’s stock, valued at approximately $929,307.12. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director George W. Page, Jr. purchased 10,000 shares of the firm’s stock in a transaction dated Tuesday, August 28th. The stock was acquired at an average cost of $72.36 per share, for a total transaction of $723,600.00. Following the purchase, the director now owns 931 shares in the company, valued at $67,367.16. The disclosure for this purchase can be found here. Corporate insiders own 22.19% of the company’s stock.

Institutional investors have recently made changes to their positions in the company. Conestoga Capital Advisors LLC lifted its stake in MGP Ingredients by 51.4% during the 3rd quarter. Conestoga Capital Advisors LLC now owns 1,117,274 shares of the company’s stock worth $88,242,000 after acquiring an additional 379,431 shares in the last quarter. BlackRock Inc. lifted its stake in MGP Ingredients by 8.4% during the 2nd quarter. BlackRock Inc. now owns 1,782,058 shares of the company’s stock worth $158,264,000 after acquiring an additional 137,338 shares in the last quarter. Pembroke Management LTD lifted its stake in MGP Ingredients by 74.8% during the 3rd quarter. Pembroke Management LTD now owns 272,141 shares of the company’s stock worth $21,494,000 after acquiring an additional 116,441 shares in the last quarter. Principal Financial Group Inc. lifted its stake in MGP Ingredients by 1,601.0% during the 1st quarter. Principal Financial Group Inc. now owns 103,522 shares of the company’s stock worth $9,275,000 after acquiring an additional 97,436 shares in the last quarter. Finally, Jennison Associates LLC lifted its stake in MGP Ingredients by 25.0% during the 3rd quarter. Jennison Associates LLC now owns 303,406 shares of the company’s stock worth $23,963,000 after acquiring an additional 60,650 shares in the last quarter. 98.10% of the stock is currently owned by institutional investors and hedge funds.

About MGP Ingredients

MGP Ingredients, Inc, together with its subsidiaries, produces and supplies distilled spirits, and specialty wheat proteins and starch food ingredients. It operates in two segments, Distillery Products and Ingredient Solutions. The Distillery Products segment provides food grade alcohol for beverage applications that include bourbon and rye whiskeys, as well as grain neutral spirits, including vodka and gin; and food grade industrial alcohol, which is used as an ingredient in foods, personal care products, cleaning solutions, pharmaceuticals, and various other products.

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