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ATCHISON, KS — Karen Seaberg, a director at MGP Ingredients Inc. (NASDAQ:MGPI), recently sold a significant portion of her holdings in the company. According to a recent SEC filing, Seaberg disposed of shares totaling approximately $1.67 million. The sales took place on April 1, 2025, with prices per share ranging from $27.94 to $28.77. The transaction occurs as the stock trades near its 52-week low of $27.88, having declined about 65% over the past year. InvestingPro analysis suggests the stock is currently undervalued.
The transactions involved the sale of 58,903 shares, with the shares sold in multiple trades. The sales were conducted under a Rule 10b5-1 trading plan, which allows insiders to set up a predetermined plan to sell stocks, helping to avoid potential accusations of insider trading. Despite recent price weakness, InvestingPro data shows the company maintains strong fundamentals with a current ratio of 5.91 and 16 consecutive years of dividend payments. Get access to 10+ additional ProTips and comprehensive analysis with an InvestingPro subscription.
Following these transactions, Seaberg continues to hold a substantial number of shares indirectly through various trusts and holdings. This activity is part of regular portfolio management, and the sales do not necessarily indicate any change in Seaberg’s view of the company’s prospects. The company maintains healthy financials with sufficient cash flows to cover interest payments and analysts expect profitability to continue this year.
In other recent news, MGP Ingredients Inc. reported its fourth-quarter 2024 earnings, exceeding analysts’ expectations with an earnings per share (EPS) of $1.56 against a forecast of $1.50. However, the company faced a 16% decline in consolidated sales, amounting to $180.8 million, alongside a net income loss of $42 million due to a significant non-cash goodwill adjustment. Despite these challenges, MGP Ingredients demonstrated resilience with a record cash flow from operations of $102.3 million for the year. The company also provided guidance for 2025, anticipating net sales between $520 million and $540 million and adjusted EBITDA between $105 million and $115 million.
Additionally, MGP Ingredients announced a revamp of its executive compensation program, introducing performance stock units (PSUs) tied to forward-looking financial goals to better align executive interests with shareholder value. In another development, three board members, Donn Lux, Karen Seaberg, and Lori Mingus, plan to sell shares as part of their personal financial strategies, maintaining significant equity stakes to show continued confidence in the company’s growth potential. These stock sales are structured under Rule 10b5-1 trading plans to avoid insider trading issues.
The company is also experiencing a transition within its branded spirits and ingredient solutions segments, which show potential for growth despite the decline in its Distilling Solutions segment. MGP Ingredients remains focused on strengthening its market position and managing industry challenges, with an emphasis on its branded spirits initiative expected to drive future growth.
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