Mgp Ingredients, Inc. (MGPI) research, news, and more from GeoInvesting

Company description

Thu, 27 Mar 2014 04:00:00 GMT

MGP is a leading independent supplier of premium spirits, offering flavor innovations and custom distillery blends to the beverage alcohol industry. The Company also produces high quality food grade industrial alcohol and formulates grain-based starches and proteins into nutritional, as well as highly functional, innovations for the branded consumer packaged goods industry. The Company is headquartered in Atchison, Kansas, where it also has facilities for the production of distilled spirits and food ingredients. Distilled spirits are additionally produced at the Company's facility in Lawrenceburg, Indiana.

Research

Thu, 23 Jun 2016 15:13:11 GMT

MGPI ($33.70) - SunTrust Robinson Humphrey initiated coverage on MGPI with a “Buy” rating and $50 price target. MGPI is an ex-Geo long position. We had a nice run from August thru March locking in 54% gains, but seems we have left some on the table as shares continue to climb.

Research

Thu, 03 Mar 2016 17:13:11 GMT

Closed Out Our Long Position In MGPI

We are locking in 54% gains in MGPI. Our initial alert was on August 6th 2015 when we stated we were establishing a long position based on the company’s strong Q2 2015 results which lacked a positive reaction as overall markets were weak. We also alerted members that we were adding to our position on August 17, 2015 and September 8, 2015 based on insider buys and the company’s stock buyback announcement. Shares reached as high as $27.56 or 75% higher than our initial alert during its tenure as core long selection.

Research

Fri, 18 Dec 2015 16:07:03 GMT

Will Look To Begin To Unwind MGPI

Shares of MGPI reached a new high of $24.63 in yesterday’s trading session easily surpassing our initial price target of $20.77. We have begun to unwind our long position. Shares are up 55% since our August 6th 2015alert when we stated we were establishing a long position based on the company’s strong Q2 2015 results. We also alerted members that we were adding to our position onAugust 17, 2015 and September 8, 2015 based on insider buys and the company’s stock buyback announcement.

Research

Wed, 25 Nov 2015 18:09:58 GMT

Insiders Continue To Buy MGPI ($18.68)

Yesterday, Thomas Pigott, CFO purchased 2500 shares in the open market at $18.60.

In our August 17, 2015 note we stated we added to our long position when shares were trading at $15.96 based on three separate insiders purchased 28,300 shares in the open market at roughly $15.95 per share.

On August 6, 2015 we stated we were establishing a long position in MGPI based on strong Q2 2015 results when shares were trading at $15.75. We stated that we felt shares could trade at a trailing P/E of 20, provided our due diligence continues to indicate that the company can maintain the momentum established in Q2 2015. A trailing P/E of 20 would translate into a target price of $20.77.

Research

Tue, 17 Nov 2015 18:23:59 GMT

Assessing MGPI Investor Presentation For Clues Of Possible Increased Guidance

MGPI ($18.27)

On August 6, 2015 westated we were establishing a long position in MGPI based on strong Q2 2015 results when shares were trading at $15.75. We stated that we felt shares could trade at a trailing P/E of 20, provided our due diligence continues to indicate that the company can maintain the momentum established in Q2 2015. A trailing P/E of 20 would translate into a target price of $20.77.

In an investor presentation filed today, the company stated its goal to grow operating income by 4X in 5 years. We will attempt to talk with management to gain clarity on these comments, as the company had a previous 5 year plan to grow operating income 4X over 2014 levels, a goal they are well ahead of at current levels. If this is a newly stated goal of growing 2015 operating income 4X in 5 years, we believe significant upside to exist in MGPI shares.

Research

Thu, 05 Nov 2015 05:00:00 GMT

MGPI ($18.31) reported Q3 2015 financial results:

Q3 2015 sales of $80.3 million vs $77.5 million in the prior year
Q3 2015 Adjusted EPS of $0.42 vs $0.21 in the prior year

Quotes from management:

"We are enjoying strong demand for our products, driven by long term macro consumer trends," said Gus Griffin, president and CEO of MGP. "The aggressive implementation of our strategic plan has effectively positioned MGP to realize maximum benefit from these trends. Our third quarter and year-to-date results reflect the solid traction we are realizing from our strategy."

We have added to our long position anumber of times in the past two months based on recent insider buying and the announcement of a share buyback program coupled with ourinitial catalyst of strong Q2 2015 results.

On August 6, 2015 when stock was trading at $15.40 we stated we were establishing a long position in MGPI based on strong Q2 2015 results; we stated we felt shares could trade at a trailing P/E of 20, which would equate to a target price of $20.77. Now based on the most recent Q3 2015 results, a trailing P/E of 20 would equate to a target price of $24.96.

Comments & Business Outlook

Wed, 21 Oct 2015 15:50:21 GMT

ATCHISON, Kan., Oct. 21, 2015 (GLOBE NEWSWIRE) -- MGP Ingredients, Inc. (Nasdaq:MGPI), a leading supplier of premium distilled spirits and specialty wheat proteins and starches, today reported that it is undertaking a major expansion in warehousing capacity at its Lawrenceburg, Ind., distilling facility.

The program includes a $16.4 million investment in expanding warehouse capacity on a 20-acre campus adjoining the company's current Lawrenceburg facility. The program includes both the refurbishment of existing warehouse buildings and the construction of new warehouses. When completed, the program is intended to approximately double the current barrel storage capacity at Lawrenceburg. The first new warehouses, currently under construction, are expected to be completed by the end of 2015.

"This investment is consistent with the 'invest-for-growth' initiative of our five-year strategic plan," said Gus Griffin, president and CEO of MGP. "Increased capacity will help us better support the rapid growth of the whiskey category, as well as support our own brand development efforts."

"American whiskey is in the early stages of a long term growth trend," Griffin continued. "Thanks to our strong reputation for quality and innovation, and our production capacity, MGP is uniquely positioned to benefit from this trend. This investment allows us to expand our ability to mature product for both our customers and our own future needs."

Research

Mon, 21 Sep 2015 15:04:23 GMT

Added to our long position in MGPI ($15.34)

On Friday, via premium tweet, we stated we were adding to our long position in MPGI. Shares sold off late in the day as the market continued to drop as much as 300 points. MGPI shares fell nearly 7% to an intraday low of $15.17. On August 6, 2015 we stated we were establishing a long position in MGPI based on strong Q2 2015 results; we feel shares could trade at a trailing P/E of 20, which would equate to a target price of $20.77.

Research

Tue, 08 Sep 2015 14:52:34 GMT

Will look to add our $MGPI ($14.94) long position

We may look to add to our position as a recent share purchase transaction may boost investors’ confidence in management’s near term growth outlook. MGPI announced that on September 1, 2015, the Company purchased 950,000 shares of the Company's common stock in a privately negotiated transaction with F2 SEA Inc., an affiliate of SEACOR Holdings Inc. pursuant to a Stock Repurchase Agreement. The Company paid $15.25 per share. We originally initiated our position on August 7, 2015 on the heels of significant insider purchase transactions.

Research

Mon, 17 Aug 2015 15:21:20 GMT

Added to our long position in MGPI

We used the proceeds from closing out OBCI to move further into $MGPI ($15.96). We added to our long position based on insider buying activity. Three separate insiders purchased 28,300 shares in the open market at roughly $15.95 per share. On August 6, 2015 we stated we were establishing a long position in MGPI based on strong Q2 2015 results. We stated that we feel shares could trade at a trailing P/E of 20, provided our due diligence indicates the company can maintain the momentum established in Q2 2015. A trailing P/E of 20 would translate into a target price of $20.77.

Research

Fri, 14 Aug 2015 18:05:35 GMT

We added share of MGPI in yesterday’s trading session due to insider buying activity. Three separate insiders purchased 28,300 shares in the open market at roughly $15.95 per share.

We first alerted members we were buying on August 6, 2015 at $15.75 . We think the stock could reach $20.77 in the near-term.

Comments & Business Outlook

Thu, 06 Aug 2015 19:35:33 GMT

Establishing Short Term Trading Position in $MGPI

We are looking at the changes in certain commodity prices and what impact they may have on $MGPI's gross margins. For example, the company's distillery products segment (81.9% of total sales in fiscal 2014) uses raw materials like corn and other feedstock. Wheat flour is used as a raw material in the company’s ingredients solutions business (18.1% of the total sales in fiscal 2014).

We are also performing valuation analysis. Currently, the stock is trading at a trailing Non-GAAP P/E of 15.5. We think it’s reasonable that shares could trade at a trailing P/E of 20, provided our due diligence indicates the company can maintain the momentum established in Q2 2015. A trailing P/E of 20 would translate into a target price of $20.77.

Yesterday, MGPI reported strong Q2 2015 results:

Q2 2015 sales of $92.1 million vs $85.9 million in the prior year
Q2 2015 EPS of $0.44 vs $0.28 in the prior year

Quotes from management:

We continue to enjoy strong demand for our premium beverage alcohol products, particularly our whiskeys and non-GMO offerings. I am very pleased with the speed with which we have been able to refocus our investment and sales, marketing, and operations effort to meet this growing demand...

...We are making better than expected progress in implementing our new growth initiatives," said Griffin. "Our progress in focusing on our higher value products is evident in the exceptional gross profit growth in both our business segments. The just announced launch of our Limited Edition Metze's Select Indiana Straight Bourbon Whiskey is an example of our progress in capturing a larger share of the value chain. We are aggressively implementing our Invest for Growth initiative, to ensure we are in position to support the growth of our industries, business segments and customers." Griffin added, "Despite a significantly higher effective tax rate this year, our improved operating income results drove growth in net income and EPS. We are making great progress in realizing the potential of our business and we are encouraged by the outlook for the remainder of 2015."