Mueller Industries (NYSE:MLI) Shares Gap Down Following Weak Earnings

Shares of Mueller Industries, Inc. (NYSE:MLI) gapped down prior to trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $60.82, but opened at $57.99. Mueller Industries shares last traded at $56.8710, with a volume of 148,001 shares.

The industrial products company reported $1.00 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.08 by ($0.08). Mueller Industries had a return on equity of 25.68% and a net margin of 18.25%. Mueller Industries’s quarterly revenue was up 31.6% on a year-over-year basis. During the same period in the previous year, the firm posted $1.88 earnings per share.

Mueller Industries Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, September 18th. Stockholders of record on Friday, September 4th were given a $0.1750 dividend. The ex-dividend date was Friday, September 4th. This represents a $0.70 annualized dividend and a dividend yield of 1.2%. Mueller Industries’s dividend payout ratio is currently 18.23%.

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on MLI. Northcoast Research upgraded shares of Mueller Industries from a “neutral” rating to a “buy” rating and set a $75.00 price target for the company in a report on Thursday, July 16th. Wall Street Zen downgraded shares of Mueller Industries from a “strong-buy” rating to a “buy” rating in a research note on Saturday, July 25th. Finally, Weiss Ratings restated a “buy (b)” rating on shares of Mueller Industries in a research report on Thursday. Two analysts have rated the stock with a Buy rating. According to MarketBeat, the company presently has an average rating of “Buy” and a consensus price target of $75.00.

Insiders Place Their Bets

In related news, CEO Gregory Christopher sold 200,000 shares of the stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $68.44, for a total value of $13,688,000.00. Following the completion of the sale, the chief executive officer directly owned 1,598,850 shares in the company, valued at approximately $109,425,294. This represents a 11.12% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Scott Goldman sold 2,000 shares of Mueller Industries stock in a transaction that occurred on Thursday, August 27th. The shares were sold at an average price of $64.08, for a total transaction of $128,160.00. Following the sale, the director owned 79,734 shares in the company, valued at $5,109,354.72. This represents a 2.45% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 275,444 shares of company stock worth $18,885,398 over the last ninety days. 2.30% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of MLI. SJS Investment Consulting Inc. increased its holdings in Mueller Industries by 28.4% during the 1st quarter. SJS Investment Consulting Inc. now owns 371 shares of the industrial products company’s stock worth $41,000 after acquiring an additional 82 shares during the period. Root Financial Partners LLC lifted its stake in Mueller Industries by 19.6% in the 1st quarter. Root Financial Partners LLC now owns 512 shares of the industrial products company’s stock worth $57,000 after purchasing an additional 84 shares in the last quarter. Jackson Thornton Wealth Management LLC lifted its stake in Mueller Industries by 2.3% in the 1st quarter. Jackson Thornton Wealth Management LLC now owns 4,431 shares of the industrial products company’s stock worth $537,000 after purchasing an additional 101 shares in the last quarter. NBT Bank N A NY lifted its stake in Mueller Industries by 148.7% in the 1st quarter. NBT Bank N A NY now owns 286 shares of the industrial products company’s stock worth $32,000 after purchasing an additional 171 shares in the last quarter. Finally, Fifth Third Wealth Advisors LLC boosted its holdings in Mueller Industries by 3.8% in the 1st quarter. Fifth Third Wealth Advisors LLC now owns 4,727 shares of the industrial products company’s stock valued at $524,000 after purchasing an additional 174 shares during the period. 94.50% of the stock is owned by institutional investors and hedge funds.

Mueller Industries Trading Down 7.3%

The company’s fifty day simple moving average is $62.19 and its 200 day simple moving average is $63.57. The stock has a market capitalization of $12.47 billion, a P/E ratio of 14.68 and a beta of 1.08.

About Mueller Industries

Mueller Industries, Inc is a manufacturer of metal and plastic products used in plumbing, heating, ventilation, air conditioning, refrigeration, fire protection, water distribution, and industrial applications. Its product portfolio includes copper, brass, aluminum, and steel tubing; fittings; valves; copper and plastic piping systems; and related components.

The company sells products primarily through wholesale distributors, original equipment manufacturers, building-supply outlets, and other industrial channels.