Better Times Ahead For MDU Resources Group Inc. (NYSE: MDU)?


    The Vanguard Group, Inc. has recently announced that it has increased stake in MDU Resources Group Inc. (NYSE:MDU) by 2.83%. After grabbing 21.63 million shares, the institutional investor is now in possession of 0.6 million shares of the Basic Materials Company. The new investment brought the stake of investor firm to 10.79% having worth around $453.74 million. Moreover, LSV Asset Management increased its share by 2.02 million to have a control over 3.87 million shares. And Parnassus Investments raised its holdings to 0.48 million shares by acquiring 3.09 million shares or 1.54% of the stake.

    MDU Resources Group Inc. (MDU) concluded trading on 08/26/20 at a closing price of $22.94, with 1.42 million shares of worth about $32.63 million changed hands on the day. Weekly performance of the stock remained positive as price took a surge of 1.01% during that period and on Wednesday the price saw a loss of about -3.12%. Currently the company’s common shares owned by public are about 200.44M shares, out of which, 198.69M shares are available for trading.

    A deeper look into what the analysts at Wall Street are thinking about the price target of this stock provides us with the following: 3 analysts are covering the MDU stock and their offered price forecasts bring an average price target of $28.33. Over the next 12 months, analysts forecasted that the stock’s price could jump as high as $36.00 and could fall to a lowest price of $23.00. Analysts also issued an outlook of 2.50 for the MDU Resources Group Inc. stock for next 12 months. The stock’s current price level is 19.03% above of average price target set by the analysts, while a rise to estimated low would result in gain of 0.26 for the stock. However, touching the estimated high of $36.00 would mean a gain of 36.28% for the stock.

    According to filings with the U.S. Securities and Exchange Commission (SEC), insiders took part in trade of the company’s stock for 44 times over the past 12 months. They bought 100,073 shares in 34 of the transactions. In 10 selling transactions, insiders dumped 8,411 shares.

    SPDR S&P Dividend ETF, Vanguard Total Stock Market Index, and iShares Core S&P Mid Cap ETF are the top 3 mutual funds which are holding stakes in MDU Resources Group Inc. SPDR S&P Dividend ETF is currently holding 8.35 million shares of worth totaling $175.09 million. The company recently came selling 2558.0 shares which brought its stake up to 4.16% of the company’s outstanding shares. Vanguard Total Stock Market Index sold 60569.0 shares, after which its hold over company’s outstanding shares shrunk to 2.82%, leaving 5.66 million shares with the mutual fund that have a worth of about $118.81 million. iShares Core S&P Mid Cap ETF, after selling 5.32 million shares, have now control over 2.65% of the stake in the company. It holds 39847.0 shares of worth $111.53 million.

    MDU Resources Group Inc. (NYSE: MDU) started trading at $23.61, below -$0.07 from concluding price of the previous day. However, the stock finished the trading on the day at a closing price of $22.94, or with a loss of -3.12%. Stock saw a price change of 1.01% in past 5 days and over the past one month there was a price change of 5.76%. Year-to-date (YTD), MDU shares are showing a performance of -22.79% which decreased to -12.97% when we look at its performance for past 12 months. Over the period of past 52 weeks, stock dropped to lowest price of $15.00 but also hit the highest price of $32.22 during that period. While comparing its average daily trading volume of 1.14 million shares, we see that about 1.42 million changed hands on the day. The stock is currently trading 1.25% above its 20-day simple moving average (SMA20), while that difference is up 4.19% for SMA50 and it goes to -8.38% lower than SMA200.

    The Vanguard Group, Inc. acquired 21.63 million shares of MDU Resources Group Inc. having value of about $453.74 million. Data submitted at the U.S SEC by The Vanguard Group, Inc. revealed that the firm now holds 0.6 million shares in the company valued at close to $13666321.48, or have control over 2.83% stake in the company. MDU Resources Group Inc. (NYSE: MDU) currently have 200.44M outstanding shares and institutions hold larger chunk of about 71.20% of that. Holding of mutual funds in the company is about 29.12% while other institutional holders and individual stake holders have control over 41.16% and 1.84% of the stake respectively.

    The stock has a current market capitalization of $4.60B and its 3Y-monthly beta is at 0.74. PE ratio of stock for trailing 12 months is 12.88, while it has posted earnings per share of $1.78 in the same period. Its PEG reads 1.57 and has Quick Ratio of 1.30 while making debt-to-equity ratio of 0.87. Volatility of a stock is a metric used to know how much the price of that stock is under influence and for MDU, volatility over the week remained 2.80% while standing at 2.62% over the month.

    Analysts are in expectations that MDU Resources Group Inc. (MDU) stock would likely to be making an EPS of $0.63 in the current quarter, while forecast for next quarter ESPS is $0.49 and it is $1.86 for next year. For the current quarter EPS, analysts have given the company a lowest target $0.6 which is $0.66 at the higher side of the target for the same. When we compare those targets with actual EPS, we find that company posted an EPS of $0.69 in the same quarter a year ago. Stock’s fiscal year EPS is expected to rise by 25.70% while it is estimated to increase by 6.35% in next year. EPS is likely to shrink at an annualized rate of 8.20% for next 5-years, compared to annual growth of 12.00% made by the stock over the past 5-years.

    Analysts at 3 brokerage firms have issued recommendations for the MDU Resources Group Inc. (MDU)’s stock and average of those rates the stock at a “Moderate Buy” and assign it a score of 2.50. Out of those 3 Wall Street analysts, 1 recommended a “Buy” rating, while 2 were in favor recommending the stock as a “Hold” and 0 analyst recommended the stock as “Sell”.

    Digging deeper we find that several firms have released their research notes about the support levels of the stock. Most recent of them is a note released by Williams Capital Group on September 16, 2019 offering a Buy rating for the stock and assigned a target price range of between $31 and $32 to it. Coverage by Williams Capital Group stated MDU Resources Group Inc. (MDU) stock as a Buy in their note to investors on February 08, 2018, suggesting a price target of $28 for the stock. On February 13, 2017, Argus Downgrade their recommendations, while on February 04, 2015, Barclays Downgrade their ratings for the stock with a price target of $23. Stock get a Neutral rating from DA Davidson on February 02, 2015.


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