Shares of Minerals Technologies Inc. (NYSE: MTX) received an upgrade from Zacks Research, which raised its rating from “strong sell” to “hold” in a report published on Wednesday, October 18, 2023. This update reflects a shift in sentiment toward the company’s stock amid varying assessments from multiple analysts.
The stock has been a focal point for several analysts recently. On the same day as Zacks’ upgrade, Wall Street Zen revised its rating from “strong buy” to “buy.” In contrast, Weiss Ratings reaffirmed a “sell (D+)” rating on December 22, 2023. Currently, one research analyst has assigned a “buy” rating, while another has opted for “hold,” and a third has recommended a “sell.” According to MarketBeat, the consensus rating for Minerals Technologies stands at “hold,” with an average price target of $84.00.
Quarterly Earnings Exceed Expectations
Minerals Technologies announced its quarterly earnings on October 23, 2023. The company reported earnings per share (EPS) of $1.55, surpassing analysts’ expectations of $1.47 by $0.08. The basic materials firm achieved revenue of $532.40 million for the quarter, slightly exceeding the consensus estimate of $531.20 million. This revenue figure indicates a 1.5% increase compared to the same quarter the previous year, when it recorded an EPS of $1.51.
Despite these positive results, the company reported a negative net margin of 0.08% and a return on equity of 10.69%. Analysts project that Minerals Technologies will post an EPS of 6.62 for the current fiscal year.
Insider Transactions Raise Questions
In other noteworthy news, insider Brett Argirakis sold 6,501 shares of the company on November 21, 2023. The shares were sold at an average price of $58.68, totaling approximately $381,478.68. Following this transaction, Argirakis retained 27,602 shares, valued at $1,619,685.36, reflecting a 19.06% decrease in ownership.
Similarly, insider Dj Monagle III sold 23,093 shares on December 29, 2023, at an average price of $61.90, amounting to about $1,429,456.70. After this sale, Monagle III’s direct ownership decreased by 21.49%, leaving him with 84,349 shares, valued at $5,221,203.10. Company insiders collectively own 3.30% of the company’s stock.
Institutional investors and hedge funds have also been active regarding their positions in Minerals Technologies. American Century Companies Inc. increased its stake by 3.1% in the third quarter, now holding 1,324,392 shares valued at $82,271,000. Similarly, Geode Capital Management LLC raised its holdings by 0.6% in the second quarter, owning 911,831 shares, worth $50,220,000.
In total, approximately 97.29% of Minerals Technologies’ stock is held by institutional investors and hedge funds, indicating strong confidence in the company’s potential.
Minerals Technologies Inc. specializes in the development and production of a wide range of mineral-based products that cater to various industrial needs. Its offerings include bentonite, perlite, and precipitated calcium carbonate (PCC), among others. The company operates through multiple segments, including Specialty Minerals, Refractory Minerals, Performance Materials, and Recycled Materials, serving industries from paper to construction.
As the market continues to respond to the latest ratings and financial results, investors will be watching closely to see how these developments impact the stock’s performance in the coming months.
