MGP Ingredients, Inc. (MGPI): When The Market Gets It Wrong

The stock of MGP Ingredients, Inc. (NASDAQ:MGPI) has been Upgraded to Buy from Neutral by Sidoti in its latest research note that was published on January 31. Stifel, analysts launched coverage of MGPI stock with a Hold rating, according to their flash note to investors on December 06. Analysts at Sidoti downgraded the stock to a Neutral call from its previous Buy stance, in a research note that dated back to May 05.

MGP’s stock is covered by 2 analysts, with none of them rating the stock as Buy. It has been deemed to have strong buy by 2 of the analysts, none of them have rated it as a Hold while none of them rated it as sell. The situation was different a month ago when the stock was rated as a Buy by only none analysts. 2 of them rated it as strong buy with none of them recommended investors to Hold on to the stock. Meanwhile, none analyst(s) rated it as a sell. The above data shows that MGPI has an average analyst rating of 2.00.

MGP Ingredients, Inc., which has current market capitalization of above $845 Million, published its last quarter earnings on June 30, 2019. The company was able to amass $89.1 million in revenue. This figure is $2.4 million more than what analysts had expected which was $91.5 million.

On May 10, 2019 Glaser Stephen J, Vice President bought 300 shares of the company. The average price for that transaction was $67.75 per share, which meant that Glaser Stephen J spent $20325 purchasing the stocks. The purchase was made public, with the document of the transaction filed with the SEC. Another insider trading occurred, with Director, Seaberg Karen selling 1546 shares of this stock on March 15, 2019. The average selling price for the stock was $77.75 per share, with the sold stock accruing $120201.5. Following this transaction, the Director Seaberg Karen now holds 29396 shares of the company, which is worth around $1509191.

MGP has around 2 Billion cash on their books at the moment. This figure will have to be compared and looked into, with their current liabilities standing at $32 Billion. The MGP stock is bringing in revenue of over 12 months, which is roughly 91 Billion. Despite all that, MGP Ingredients, Inc. is seeing things progressing very much as their y-o-y quarterly revenue surged by 2.55%.

Looking at the stock’s Technical analysis information over the past 50 days shows that its Raw Stochastic average stood at 12.61%. This figure is worse than the company’s 20-day Raw Stochastic average which currently stands at 12.75%. Over the past 20 days, MGP’s Stochastic %K stood at 19.37% while its Stochastic %D was revealed to be 21.18%.