Alto Ingredients Director Buys 10,000 Shares Amid Mixed Analyst Views
Alto Ingredients saw a director increase his stake by 1.17% in September, coinciding with a recent earnings beat and a consensus hold rating.
Gilbert Nathan, a director at Alto Ingredients, Inc., purchased 10,000 shares of the company's stock on September 14. The transaction was executed at an average price of $3.93 per share, resulting in a total investment of $39,300. This move increased Nathan’s direct ownership to 866,393 shares, valued at approximately $3.4 million at the time of the disclosure.
The purchase, filed with the Securities & Exchange Commission, represents a 1.17% increase in the director’s stake in the Dallas-based producer of alcohol-based products. At the time of the trade, Alto Ingredients had a market capitalization of $307.18 million and a price-to-earnings ratio of 5.91, trading near its one-year low of $0.92 despite a high of $6.11 recorded over the same period.
Recent Financial Performance Beats Estimates
Alto Ingredients reported its most recent quarterly results on August 5, posting earnings per share of $0.15. This figure exceeded the consensus estimate of $0.08 by $0.07. Revenue for the quarter reached $245.70 million, surpassing the expected $231.24 million. The company maintained a net margin of 5.51% and a return on equity of 18.54% during the period.
Financial metrics indicate a strong liquidity position, with a quick ratio of 2.17 and a current ratio of 3.19. The debt-to-equity ratio stood at 0.23, suggesting a conservative leverage profile. For the current fiscal year, analysts forecast earnings per share of $0.39, reflecting continued expectations for profitability in the company’s core ethanol and specialty ingredient segments.
Analyst Ratings Reflect Cautious Stance
According to data cited by GN stocks and nasdaq sources, the stock currently holds a consensus rating of Hold with an average price target of $10.00. Scotiabank set a price objective of $10.00 in an August 6 report. In contrast, Zacks Research downgraded its rating from strong-buy to hold in July, while Weiss Ratings reaffirmed a hold rating shortly thereafter.
HC Wainwright reiterated a buy rating on the same day as Scotiabank’s report. The divergence in opinions results in a mixed outlook, with one analyst recommending a buy and two recommending a hold. The stock’s beta of 0.16 indicates low volatility relative to the broader market, while its 50-day moving average of $4.62 remains above the recent trading price of $3.96.
Institutional Positions Remain Modest
Institutional investors own 42.44% of Alto Ingredients’ stock, with recent activity showing several new positions established in 2023. California State Teachers Retirement System opened a position worth approximately $33,000 in the second quarter. Legal & General Group Plc and Leonteq Securities AG also acquired new stakes valued at roughly $41,000 and $44,000, respectively, during the second and fourth quarters.
Bank of New York Mellon Corp and Sei Investments Co. initiated positions in the first quarter with values of about $49,000 and $58,000. These additions to the shareholder base come as the company continues to operate its production network across the United States, supplying renewable fuels, confectionery, and personal care markets.
