Karen Seaberg, a director and ten percent owner of MGP Ingredients Inc. (NASDAQ:MGPI), recently reported the sale of company stock. According to the SEC filing, Seaberg sold 451 shares of common stock on November 27, 2024, at a weighted average price of $45.85 per share, generating proceeds of $20,678. The sale comes as the stock trades near its 52-week low of $43.48, with shares down about 38% over the past six months. These transactions were executed at prices ranging from $44.89 to $46.10 per share. Following this sale, Seaberg continues to hold substantial shares in various capacities, including 119,105 shares held by a trust and additional shares through other entities. Despite the recent price decline, InvestingPro analysis indicates the stock is trading below its Fair Value, with a P/E ratio of just 9.5x and maintaining a "Good" financial health score. Get deeper insights into insider trading patterns and comprehensive valuation metrics for MGPI and 1,400+ other stocks with InvestingPro's detailed research reports.
In other recent news, MGP Ingredients reported mixed results in its Third Quarter 2024 earnings call. Despite a significant 24% decrease in consolidated sales to $161.5 million, largely due to a 36% drop in the Distilling Solutions segment, the company saw an 82% increase in net income to $23.9 million, underpinned by a steady cash flow from operations of $73.5 million. TD Cowen has downgraded MGP Ingredients from Buy to Hold, lowering the price target to $50 from $66, due to concerns about persistent supply and demand imbalances for "Brown Goods" and significant margin resets for Distilling Solutions.
The analyst at TD Cowen anticipates these challenges to continue for at least the next 12 months, based on the current market conditions for distilled spirits. Despite these challenges, MGP Ingredients is taking strategic measures for long-term growth, including reducing whiskey production, exploring international expansion, and focusing on new distillate contracts. The company's acquisition of Luxco represents a strategic move towards becoming a premier branded spirits company.
For 2025, MGP Ingredients anticipates a nearly 35% decline in Distilling Solutions segment sales and a 50% drop in gross profits. However, the company expects the Ingredient Solutions segment to stabilize and grow, while the Branded Spirits segment aims for top-line growth and margin expansion. These recent developments reflect MGP Ingredients' resilient approach to navigating current market obstacles.
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