Modine Manufacturing (NYSE:MOD) Shares Gap Up – Time to Buy?

Modine Manufacturing Company (NYSE:MOD) gapped up prior to trading on Friday. The stock had previously closed at $106.10, but opened at $142.00. Modine Manufacturing shares last traded at $138.4370, with a volume of 2,364,245 shares changing hands.

Key Headlines Impacting Modine Manufacturing

These are some of the MOD headlines that stood out recently:

• Positive Sentiment: Reports say Samsung is discussing a possible acquisition of Modine for about $5.6 billion, which could give Samsung access to Modine’s cooling technology for AI data centers. The reports have lifted investor expectations for a takeover premium. Bloomberg Law article
• Positive Sentiment: Modine has started commercial production of Airedale chillers at its Grand Prairie, Texas, facility, adding production capacity for data-center cooling demand. MarketScreener article
• Negative Sentiment: Recent quarterly results included an EPS miss—$1.35 versus the $1.47 consensus—and commentary citing supply-chain bottlenecks and weak margins, despite revenue beating estimates. Insider Monkey article

Analyst Upgrades and Downgrades

MOD has been the subject of several recent research reports. Wall Street Zen cut Modine Manufacturing from a “buy” rating to a “hold” rating in a research note on Saturday, July 25th. Oppenheimer reduced their price objective on shares of Modine Manufacturing from $260.00 to $215.00 and set an “outperform” rating on the stock in a research note on Thursday, November 5th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Modine Manufacturing in a report on Tuesday, August 25th. KeyCorp reduced their price target on shares of Modine Manufacturing from $280.00 to $225.00 and set an “overweight” rating on the stock in a research report on Wednesday, November 4th. Finally, DA Davidson restated a “buy” rating and set a $330.00 target price on shares of Modine Manufacturing in a research note on Tuesday, October 27th. One analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $264.89.

Modine Manufacturing Price Performance

The stock has a market cap of $7.24 billion, a P/E ratio of 56.94, a P/E/G ratio of 0.42 and a beta of 1.86. The company’s 50 day moving average price is $159.34 and its 200-day moving average price is $213.29. The company has a quick ratio of 1.34, a current ratio of 2.17 and a debt-to-equity ratio of 0.55.

Modine Manufacturing (NYSE:MOD) last announced its earnings results on Tuesday, November 3rd. The auto parts company reported $1.35 EPS for the quarter, missing the consensus estimate of $1.47 by ($0.12). The company had revenue of $994.40 million for the quarter, compared to analyst estimates of $978.31 million. Modine Manufacturing had a return on equity of 25.96% and a net margin of 3.58%. The firm’s quarterly revenue was up 34.6% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.83 earnings per share. As a group, sell-side analysts expect that Modine Manufacturing Company will post 6.25 earnings per share for the current year.

Institutional Investors Weigh In On Modine Manufacturing

Large investors have recently added to or reduced their stakes in the business. BlackRock Inc. bought a new stake in Modine Manufacturing in the second quarter valued at $765,540,000. Paradigm Capital Management Inc. NY bought a new stake in Modine Manufacturing in the 2nd quarter valued at about $388,140,000. Reinhart Partners LLC. raised its stake in Modine Manufacturing by 76.4% during the 3rd quarter. Reinhart Partners LLC. now owns 980,220 shares of the auto parts company’s stock worth $183,497,000 after buying an additional 424,534 shares during the period. Marshall Wace LLP boosted its holdings in Modine Manufacturing by 218.6% in the third quarter. Marshall Wace LLP now owns 533,024 shares of the auto parts company’s stock worth $99,782,000 after acquiring an additional 365,739 shares in the last quarter. Finally, Janus Henderson Group PLC raised its position in shares of Modine Manufacturing by 2,249.9% during the first quarter. Janus Henderson Group PLC now owns 523,507 shares of the auto parts company’s stock worth $113,459,000 after purchasing an additional 501,229 shares during the period. Institutional investors and hedge funds own 95.23% of the company’s stock.

About Modine Manufacturing

Modine Manufacturing Company is a global provider of thermal management solutions, serving markets that need to control heating, cooling and temperature-related performance. Founded in 1916 by Arthur B. Modine, the company is headquartered in Racine, Wisconsin. Through its Climate Solutions business, Modine supplies heating, ventilation and air conditioning equipment for commercial and industrial buildings, as well as cooling systems for data centers. Its offerings include chillers, heat exchangers and other equipment designed to manage indoor environments and remove heat from technology infrastructure.