Gains May Be On The Menu For MDU Resources Group Inc. (NYSE: MDU)

GLBE Stock
GLBE Stock

The Vanguard Group, Inc. recently announced the acquisition of new stake in MDU Resources Group Inc. (NYSE:MDU). The institutional investor has increased its shareholding in the Basic Materials company by 1.10% to 21.03 million shares with purchase of 0.23 million shares. This fresh investment now brings its stake to 10.49% valued currently at $457.65 million. In addition, Acadian Asset Management LLC raised its holdings by 0.92 million to 4.59 million shares. And Geode Capital Management LLC has lifted its position by 4.94% or 0.14 million shares – to 2.92 million shares.

With over 0.8 million MDU Resources Group Inc. (MDU) shares trading Wednesday and a closing price of $21.33 on the day, the dollar volume was approximately $16.97 million. The shares have shown a negative weekly performance of -3.83% and its price on 07/08/20 lost nearly -0.56%. Currently, there are 200.44M common shares owned by the public and among those 198.69M shares have been available to trade.

Insiders at the company have transacted a total of 43 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 33 of these insider trades were purchases, accounting for 98,073 shares. Insider sales of the common stock occurred on 10 occasions, with total insider shares sold totaling 8,411 shares.

The top 3 mutual fund holders in MDU Resources Group Inc. are SPDR S&P Dividend ETF, Vanguard Total Stock Market Index, and iShares Core S&P Mid Cap ETF. SPDR S&P Dividend ETF owns 6.74 million shares of the company’s stock, all valued at over $146.58 million. The company sold 14021.0 shares recently to bring their total holdings to about 3.36% of the shares outstanding. Vanguard Total Stock Market Index sold 45545.0 shares to see its total holdings shrink to 5.74 million shares valued at over $125.0 million and representing 2.87% of the shares outstanding. iShares Core S&P Mid Cap ETF bought 11360.0 shares to bring its total holdings to over 5.45 million shares at a value of $118.69 million. iShares Core S&P Mid Cap ETF now owns shares totaling to 2.72% of the shares outstanding.

Shares of MDU Resources Group Inc. (NYSE: MDU) opened at $21.35, down -$0.1 from a prior closing price of $21.45. However, the script later closed the day at $21.33, down -0.56%. The company’s stock has a 5-day price change of -3.83% and -3.18% over the past three months. MDU shares are trading -28.21% year to date (YTD), with the 12-month market performance down to -18.40% lower. It has a 12-month low price of $15.00 and touched a high of $32.22 over the same period. Currently, 0.8 million shares have been traded, compared to an average intraday trading volume of 1.33 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -1.65%, -1.82%, and -18.23% respectively.

Institutional ownership of MDU Resources Group Inc. (NYSE: MDU) shares accounts for 72.00% of the company’s 200.44M shares outstanding. Mutual fund holders own 30.58%, while other institutional holders and individual stakeholders account for 40.36% and 1.84% respectively.

It has a market capitalization of $4.25B and a beta (3y monthly) value of 0.80. The stock’s trailing 12-month PE ratio is 13.31, while the earnings-per-share (ttm) stands at $1.60. The company has a PEG of 1.62 and a Quick Ratio of 1.30 with the debt-to-equity ratio at 0.87. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.60% over the week and 3.66% over the month.

Analysts forecast that MDU Resources Group Inc. (MDU) will achieve an EPS of $0.29 for the current quarter, $0.66 for the next quarter and $1.78 for 2021. The lowest estimate earnings-per-share for the quarter is $0.29 while analysts give the company a high EPS estimate of $0.29. Comparatively, EPS for the current quarter was $0.31 a year ago. Earnings per share for the fiscal year are expected to increase by 25.70%, and 8.48% over the next financial year. EPS should shrink at an annualized rate of 8.20% over the next five years, compared to 12.00% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by several brokerage firm advisors rate MDU Resources Group Inc. (MDU) as a “Moderate Buy” at a consensus score of 2.50.

Looking at the support for the MDU, a number of firms have released research notes about the stock. Williams Capital Group stated their Buy rating for the stock in a research note on September 16, 2019, with the firm’s price target at $31-$32. Williams Capital Group coverage for the MDU Resources Group Inc. (MDU) stock in a research note released on February 08, 2018 offered a Buy rating with a price target of $28. Argus was of a view on February 13, 2017 that the stock is Hold, while Barclays gave the stock Underweight rating on February 04, 2015, issuing a price target of $25- $23. DA Davidson on their part issued Neutral rating on February 02, 2015.


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