MasterBrand (NYSE:MBC) Shares Gap Up – Still a Buy?

MasterBrand, Inc. (NYSE:MBC)’s stock price gapped up prior to trading on Tuesday . The stock had previously closed at $13.39, but opened at $13.94. MasterBrand shares last traded at $14.00, with a volume of 79,173 shares trading hands.

Analyst Upgrades and Downgrades

Separately, Loop Capital decreased their price objective on MasterBrand from $21.00 to $19.00 and set a “buy” rating on the stock in a research note on Wednesday, February 19th.

MasterBrand Stock Up 2.0 %

The company has a market capitalization of $1.79 billion, a P/E ratio of 14.49 and a beta of 1.77. The company has a debt-to-equity ratio of 0.78, a current ratio of 1.65 and a quick ratio of 1.02. The company has a 50 day moving average of $15.60 and a 200-day moving average of $16.42.

MasterBrand (NYSE:MBC) last announced its quarterly earnings results on Tuesday, February 18th. The company reported $0.21 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.38 by ($0.17). MasterBrand had a net margin of 4.66% and a return on equity of 13.89%. The business had revenue of $667.70 million for the quarter, compared to the consensus estimate of $722.85 million.

MasterBrand declared that its board has approved a share buyback program on Monday, March 17th that allows the company to repurchase $50.00 million in outstanding shares. This repurchase authorization allows the company to repurchase up to 2.9% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company’s management believes its shares are undervalued.

Insider Transactions at MasterBrand

In related news, Director Juliana L. Chugg acquired 6,989 shares of the stock in a transaction dated Monday, February 24th. The stock was acquired at an average cost of $14.17 per share, with a total value of $99,034.13. Following the purchase, the director now directly owns 33,424 shares of the company’s stock, valued at approximately $473,618.08. This trade represents a 26.44 % increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Robert Crisci purchased 20,000 shares of MasterBrand stock in a transaction dated Friday, February 28th. The stock was acquired at an average price of $14.08 per share, for a total transaction of $281,600.00. Following the completion of the acquisition, the director now owns 66,435 shares of the company’s stock, valued at approximately $935,404.80. This trade represents a 43.07 % increase in their position. The disclosure for this purchase can be found here. Insiders own 1.38% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the company. Smartleaf Asset Management LLC boosted its position in MasterBrand by 150.7% in the fourth quarter. Smartleaf Asset Management LLC now owns 2,577 shares of the company’s stock valued at $37,000 after buying an additional 1,549 shares during the last quarter. Quest Partners LLC grew its position in shares of MasterBrand by 33.3% in the third quarter. Quest Partners LLC now owns 3,285 shares of the company’s stock valued at $61,000 after purchasing an additional 821 shares during the period. Public Employees Retirement System of Ohio boosted its holdings in MasterBrand by 52.4% in the 3rd quarter. Public Employees Retirement System of Ohio now owns 3,535 shares of the company’s stock worth $66,000 after buying an additional 1,216 shares during the last quarter. KBC Group NV increased its position in shares of MasterBrand by 52.0% during the fourth quarter. KBC Group NV now owns 5,800 shares of the company’s stock worth $85,000 after purchasing an additional 1,983 shares in the last quarter. Finally, TD Private Client Wealth LLC raised its position in shares of MasterBrand by 39.9% in the third quarter. TD Private Client Wealth LLC now owns 4,783 shares of the company’s stock valued at $89,000 after buying an additional 1,364 shares during the last quarter. Hedge funds and other institutional investors own 87.32% of the company’s stock.

About MasterBrand

MasterBrand, Inc engages in the manufacture and sale of residential cabinets in the United States and Canada. The company offers a range of residential cabinetry products for the kitchen, bathroom, and other parts of the home. It sells its products to remodeling and new construction markets through dealers, retailers, and builders.