Roth Capital Downgrades Q1 EPS Estimates for MGP Ingredients

MGP Ingredients, Inc. (NASDAQ:MGPI) has seen a revision in its expected earnings per share (EPS) for the first quarter of 2025, according to a report from Roth Capital issued on December 23rd. The analyst S. Mcgowan at Roth Capital has lowered the estimate from $0.79 to $0.50 for this quarter. This adjustment comes amid a broader analysis indicating that the consensus estimate for MGP Ingredients’ earnings for the entire year is projected at $5.57 per share.

Furthermore, Roth Capital has provided additional projections for MGP Ingredients’ financial performance in other quarters. For Q2 2025, they anticipate EPS of $0.76; for Q3 2025, an EPS of $0.73; and for Q4 2025, expectations are set at $1.00 per share. Additionally, the full year 2025 is forecasted at $3.00 EPS, while for Q2 2026, it’s $1.14, and for Q3 2026, $1.03, culminating in a full year 2026 estimate of $4.36.

Analysts' Overview and Stock Ratings

Several other analysts have also assessed MGP Ingredients recently. Truist Financial lowered their price target from $85.00 to $75.00 while maintaining a "buy" rating in a report from November 1st. On the other hand, TD Cowen revised the rating from "buy" to "hold" and cut their price target from $66.00 to $50.00 in their assessment on November 6th. StockNews.com upgraded the company's stock from "sell" to "hold" on the same day as the Truist report. Lake Street Capital modified its stance as well, reducing its rating from "buy" to "hold" and decreasing its target price from $135.00 to $75.00.

Moreover, Roth Mkm adjusted its price target for MGP Ingredients from $65.00 to $60.00, still keeping a "buy" rating. In total, there has been a mix of ratings with three analysts suggesting a hold and three recommending a buy. As per MarketBeat data, the consensus rating for MGP Ingredients stands at "Moderate Buy", with an average target price of $75.83.

Current Stock Performance

As of Wednesday, MGP Ingredients shares were trading at $39.85. The company has a debt-to-equity ratio of 0.31, a quick ratio of 1.94, and a current ratio of 6.46. The market capitalization sits at approximately $874.83 million, with a price-to-earnings ratio of 8.28. The company’s shares have fluctuated, marking a 1-year low of $38.65 and a high of $102.42. Its 50-day moving average is $49.71, while the 200-day moving average is $69.93.

Recent Financial Highlights

MGP Ingredients released its quarterly earnings results on October 31st, reporting $1.29 EPS, slightly surpassing the consensus estimate of $1.27 by $0.02. In that quarter, it achieved a net margin of 14.44% and a return on equity of 14.39%. The revenue recorded was $161.50 million, closely matching analyst expectations of $161.55 million, although this represented a 23.7% decline compared to the same quarter last year.

Dividends and Insider Activity

In terms of shareholder returns, the company disclosed a recent quarterly dividend of $0.12 per share, which was paid out on November 29th; those on record as of November 15th received this dividend. This reflects an annualized dividend of $0.48 and provides a yield of 1.20%, with a dividend payout ratio of 9.98%.

Additionally, there has been notable insider activity, with Director Lori L.S. Mingus selling 7,050 shares at an average price of $46.03, worth over $324,511. Following this transaction, Mingus now holds 37,373 shares valued at approximately $1.72 million, marking a decrease of 15.87% in ownership. This transaction was formally disclosed to the Securities and Exchange Commission.

Institutional Investor Moves

On the institutional front, significant investment adjustments surrounding MGP Ingredients have occurred. For instance, World Investment Advisors LLC acquired a new stake worth $6.1 million in the third quarter. Virtu Financial LLC added a new position valued at $373,000 during the same period. Furthermore, MML Investors Services LLC boosted its position by 28.2%, owning 4,920 shares worth $410,000 following an increase in the last quarter. Villanova Investment Management Co LLC also raised its holdings by 6.2% during this time. Overall, institutional investors control about 77.11% of MGP Ingredients shares.

About MGP Ingredients

MGP Ingredients, Inc. engages in producing and supplying distilled spirits, branded spirits, and food ingredients both in the United States and abroad. The company operates through three segments: Distillery Solutions, Branded Spirits, and Ingredient Solutions.

MGP, Earnings, Stocks