MGPI Should I Buy
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MGP Ingredients Inc. (MGPI) is not a strong buy at the moment for a beginner investor with a long-term strategy. The company's recent financial performance shows significant declines in revenue, net income, and EPS, and the stock trend analysis indicates a high probability of short-term losses. Although hedge funds are buying, insider selling has increased substantially, suggesting mixed sentiment. Additionally, no strong trading signals (AI Stock Picker or SwingMax) are present, and the options data reflects low put-call ratios, indicating limited bullish sentiment. Analysts have mixed views, with some lowering price targets. Considering these factors, it is best to hold off on buying MGPI at this time.
The MACD is positive but contracting, RSI is neutral at 51.605, and moving averages are converging, indicating no clear trend. The stock is trading near its pivot level of 25.601, with resistance at 26.43 and support at 24.772. Overall, the technical indicators suggest a lack of strong momentum in either direction.
Hedge funds are increasing their buying activity, with a 203.87% increase in the last quarter. Analysts from Benchmark initiated a Buy rating with a $35 price target, citing potential growth in the Branded Spirits portfolio and Ingredient business by 2027.
Insider selling has surged by 431.07% in the last month. Financial performance in Q3 2025 showed significant declines in revenue (-18.92%), net income (-35.59%), and EPS (-33.64%). Analysts from TD Cowen and Wells Fargo have lowered price targets, reflecting concerns about the company's near-term challenges. Stock trend analysis predicts a 70% chance of a -8.18% decline over the next month.
In Q3 2025, MGPI reported a revenue drop of -18.92% YoY to $130.91M, net income fell -35.59% YoY to $15.23M, and EPS decreased -33.64% YoY to $0.71. Gross margin also declined by -7.36% YoY to 37.76%. These figures indicate significant financial headwinds.
Analysts have mixed ratings. Benchmark initiated coverage with a Buy rating and a $35 price target, citing potential long-term growth. However, TD Cowen and Wells Fargo lowered their price targets to $24 and $29, respectively, reflecting concerns about near-term challenges in the consumer staples and beverage sectors.
