Zacks Investment Research Downgrades Milacron (MCRN) to Hold
Milacron (NYSE:MCRN) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Monday.
According to Zacks, “Milacron’s year-to-date orders have gone up 10%, reflecting continued strength in high-growth regions and a solid order book. The company had raised organic sales growth guidance to 3.0-3.5%. Adjusted EBITDA guidance was tightened to $222-$224 million range to reflect higher material input costs and operational inefficiencies in Europe. However, pricing pressure in the Advanced Plastic Processing Technologies segment and high debt level remains concerns. The company’s shares have underperformed the industry in a year. Nevertheless, Milacron’s revenue growth will be supported from underlying market growth in key segments, geographic expansion of certain product lines, consistent penetration of hot runners, and incremental share gain from new products. Cost-reduction initiatives will help boost margins.”
Several other brokerages have also recently issued reports on MCRN. BidaskClub upgraded Milacron from a “strong sell” rating to a “sell” rating in a research report on Thursday, September 28th. Robert W. Baird restated a “buy” rating and issued a $23.00 target price on shares of Milacron in a report on Wednesday, October 4th. TheStreet upgraded Milacron from a “c” rating to a “b” rating in a report on Wednesday, December 13th. Finally, KeyCorp restated a “buy” rating and issued a $21.00 target price on shares of Milacron in a report on Friday, October 20th. Two analysts have rated the stock with a hold rating and three have assigned a buy rating to the stock. The stock presently has an average rating of “Buy” and a consensus price target of $21.50.
Milacron (NYSE:MCRN) last issued its quarterly earnings results on Thursday, October 26th. The industrial products company reported $0.44 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.42 by $0.02. Milacron had a negative return on equity of 56.93% and a negative net margin of 0.09%. The company had revenue of $314.70 million for the quarter, compared to analysts’ expectations of $301.13 million. During the same period last year, the firm earned $0.36 EPS. The firm’s revenue for the quarter was up 7.7% on a year-over-year basis. sell-side analysts predict that Milacron will post 1.62 EPS for the current year.
In other news, COO Ronald M. Krisanda sold 8,820 shares of the firm’s stock in a transaction on Friday, October 20th. The stock was sold at an average price of $18.57, for a total value of $163,787.40. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, major shareholder Ccmp Capital, Lp sold 10,974,093 shares of the firm’s stock in a transaction on Tuesday, November 21st. The stock was sold at an average price of $16.00, for a total value of $175,585,488.00. The disclosure for this sale can be found here. Insiders sold a total of 11,129,039 shares of company stock worth $178,449,583 over the last 90 days. Insiders own 3.40% of the company’s stock.
Several institutional investors have recently modified their holdings of MCRN. Wells Fargo & Company MN boosted its position in shares of Milacron by 78.9% in the third quarter. Wells Fargo & Company MN now owns 3,408,106 shares of the industrial products company’s stock worth $57,461,000 after buying an additional 1,503,316 shares during the period. Westfield Capital Management Co. LP acquired a new stake in shares of Milacron in the second quarter worth $18,531,000. Vanguard Group Inc. boosted its position in shares of Milacron by 34.2% in the second quarter. Vanguard Group Inc. now owns 3,827,393 shares of the industrial products company’s stock worth $67,323,000 after buying an additional 975,532 shares during the period. Wedge Capital Management L L P NC acquired a new stake in shares of Milacron in the third quarter worth $15,282,000. Finally, Royal Bank of Canada boosted its position in shares of Milacron by 133,093.1% in the second quarter. Royal Bank of Canada now owns 737,890 shares of the industrial products company’s stock worth $12,979,000 after buying an additional 737,336 shares during the period. 99.73% of the stock is owned by institutional investors and hedge funds.
Milacron Company Profile
Milacron Holdings Corp. is engaged in the manufacture, distribution, and service of engineered and customized systems used in the plastic technology and processing industry. The Company operates through three segments: Advanced Plastic Processing Technologies (APPT), Melt Delivery and Control Systems (MDCS), and Fluid Technologies.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Stock Ratings for Milacron Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Milacron and related stocks with our FREE daily email newsletter.