Milacron (MCRN) Downgraded by Zacks Investment Research to Hold
Zacks Investment Research downgraded shares of Milacron (NYSE:MCRN) from a buy rating to a hold rating in a research note issued to investors on Thursday morning.
According to Zacks, “Milacron Holdings’ fourth-quarter fiscal 2017 revenues and adjusted earnings per share beat the Zacks Consensus Estimates aided by orders and sales momentum. Orders grew 9% year over year in 2017 and year-end, backlog was a strong $287 million. Backed by the recent positive momentum in the global economy, Milacron projects sales growth guidance of 2-4% in 2018 and adjusted EBITDA between $237 million and $243 million, a 6% year-over-year growth at the mid-point. Milacron’s revenue growth will be supported from continued momentum in emerging markets (India, China), geographic expansion of certain product lines, consistent penetration of hot runners, and new products while cost-reduction initiatives will boost margins. The company has outperformed the industry in the past three months. However, input cost inflation and substantial debt remain headwinds.”
Several other equities research analysts have also recently weighed in on the company. BidaskClub cut Milacron from a buy rating to a hold rating in a research report on Tuesday, November 14th. TheStreet raised Milacron from a c rating to a b rating in a research report on Wednesday, December 13th. Finally, ValuEngine raised Milacron from a buy rating to a strong-buy rating in a research report on Tuesday, February 20th. Two investment analysts have rated the stock with a hold rating, two have assigned a buy rating and one has given a strong buy rating to the company’s stock. Milacron presently has a consensus rating of Buy and a consensus target price of $23.00.
Milacron (NYSE:MCRN) last posted its quarterly earnings data on Tuesday, February 20th. The industrial products company reported $0.47 earnings per share for the quarter, beating the consensus estimate of $0.39 by $0.08. Milacron had a negative return on equity of 58.67% and a net margin of 0.09%. The company had revenue of $324.90 million during the quarter, compared to analysts’ expectations of $302.91 million. During the same period in the prior year, the business earned $0.47 earnings per share. Milacron’s revenue for the quarter was up 12.4% compared to the same quarter last year. sell-side analysts anticipate that Milacron will post 1.78 EPS for the current fiscal year.
In other news, Director Ira G. Boots sold 43,077 shares of the stock in a transaction that occurred on Tuesday, December 5th. The stock was sold at an average price of $18.25, for a total value of $786,155.25. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, CFO Bruce A. Chalmers sold 8,600 shares of the firm’s stock in a transaction on Tuesday, December 5th. The stock was sold at an average price of $18.18, for a total value of $156,348.00. The disclosure for this sale can be found here. Insiders sold 153,355 shares of company stock valued at $2,842,739 over the last three months. 3.40% of the stock is owned by company insiders.
A number of hedge funds have recently modified their holdings of MCRN. Channing Capital Management LLC bought a new position in Milacron in the fourth quarter worth $52,429,000. Wells Fargo & Company MN lifted its position in Milacron by 57.6% in the fourth quarter. Wells Fargo & Company MN now owns 5,371,576 shares of the industrial products company’s stock worth $102,812,000 after purchasing an additional 1,963,470 shares during the period. Jennison Associates LLC bought a new position in Milacron in the fourth quarter worth $30,244,000. Vanguard Group Inc. lifted its position in 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 purchasing an additional 975,532 shares during the period. Finally, Wedge Capital Management L L P NC bought a new position in Milacron in the third quarter worth $15,282,000.
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.
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