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In a recent transaction, Lori Mingus, a director at MGP Ingredients Inc. (NASDAQ:MGPI), sold a significant portion of her holdings in the company. According to a filing with the Securities and Exchange Commission, Mingus sold 9,464 shares of common stock, generating a total of $326,697. The shares were sold at a weighted average price of $34.52, with individual sale prices ranging from $34.29 to $35.17 per share. This transaction comes as the stock has experienced a significant decline, down nearly 59% over the past year. According to InvestingPro analysis, the company appears undervalued at current levels.
The sale was conducted under a Rule 10b5-1 trading plan, which Mingus adopted on March 12, 2024. Following this transaction, she holds 27,909 shares directly through a trust and an additional 419 shares indirectly through her husband. Despite the insider sale, InvestingPro data shows the company maintains strong fundamentals with a current ratio of 5.91 and has consistently paid dividends for 16 consecutive years.
MGP Ingredients, based in Atchison, Kansas, is a prominent player in the production and distribution of distilled alcoholic beverages. With a market capitalization of $716 million and healthy gross profit margins of 41%, the company continues to attract investor attention with its strategic market presence and product offerings. For deeper insights into MGPI’s valuation and growth prospects, including 10+ additional ProTips, investors can access the comprehensive research report available on InvestingPro.
In other recent news, MGP Ingredients reported its fourth-quarter 2024 earnings, revealing an earnings per share (EPS) of $1.56, which surpassed analysts’ expectations of $1.50. Despite a 16% decline in consolidated sales to $180.8 million, the company achieved a record cash flow from operations at $102.3 million for the year. However, MGP Ingredients faced a net income loss of $42 million due to a significant non-cash goodwill adjustment. The company has provided guidance for 2025, anticipating net sales between $520 million and $540 million and adjusted EBITDA between $105 million and $115 million. MGP Ingredients expects a decline in its Distilling Solutions segment but foresees growth driven by its Branded Spirits and Ingredient Solutions segments.
In other developments, three members of MGP Ingredients’ Board of Directors plan to sell shares of the company’s common stock as part of their personal financial strategies. The planned sales by Donn Lux, Karen Seaberg, and Lori Mingus are structured through Rule 10b5-1 trading plans. Despite these sales, the directors maintain a significant equity stake and express confidence in the company’s long-term growth potential.
Additionally, MGP Ingredients continues to address challenges in its Distilling Solutions business, with plans to optimize its cost structure amid a challenging market environment. The company remains committed to its strategic vision, focusing on growth opportunities in its branded spirits and ingredient solutions segments.
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