It is Poised to be a Bull Market for Modine Manufacturing Company (MOD)

Modine Manufacturing Company (NYSE: MOD) stock fell -0.42% on Friday to $45.01 against a previous-day closing price of $45.20. With 0.57 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.68 million shares. During the session, the Auto Parts company that operates in wider Consumer Cyclical sector, reached to the highest price of $45.10 whereas the lowest price it dropped to was $44.32. The 52-week range on MOD shows that it touched its highest point at $49.60 and its lowest point at $12.85 during that stretch. It currently has a 1-year price target of $51.25. Beta for the stock currently stands at 2.25.

Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of MOD was down-trending over the past week, with a drop of -4.11%, but this was up by 2.79% over a month. Three-month performance surged to 42.35% while six-month performance rose 99.51%. The stock gained 196.90% in the past year, while it has gained 126.64% so far this year. A look at the trailing 12-month EPS for MOD yields 3.46 with Next year EPS estimates of 3.38. For the next quarter, that number is 0.64. This implies an EPS growth rate of 78.70% for this year and 19.50% for next year. EPS is expected to grow by 8.90% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 19.70%.

Float and Shares Shorts:

At present, 52.30 million MOD shares are outstanding with a float of 51.11 million shares on hand for trading. On Aug 30, 2023, short shares totaled 1.26 million, which was 2.40% higher than short shares on Jul 30, 2023. In addition to Mr. Neil D. Brinker as the firm’s Pres, CEO & Director, Mr. Michael B. Lucareli serves as its Exec. VP & CFO.

Institutional Ownership:

Through their ownership of 95.22% of MOD’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 47.00% of MOD, in contrast to 45.78% held by mutual funds. Shares owned by individuals account for 17.50%. As the largest shareholder in MOD with 7.34% of the stake, Dimensional Fund Advisors LP holds 3,837,641 shares worth 3,837,641. A second-largest stockholder of MOD, BlackRock Fund Advisors, holds 3,816,094 shares, controlling over 7.30% of the firm’s shares. Frontier Capital Management Co. L is the third largest shareholder in MOD, holding 3,650,468 shares or 6.98% stake. With a 2.88% stake in MOD, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 1,508,038 shares are owned by the mutual fund manager. The DFA US Small Cap Value Portfolio, which owns about 2.48% of MOD stock, is the second-largest Mutual Fund holder. It holds 1,297,471 shares valued at 61.75 million. 1290 VT GAMCO Small Company Value holds 2.32% of the stake in MOD, owning 1,215,000 shares worth 57.82 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, MOD reported revenue of $541.00M and operating income of $27.10M. The EBITDA in the recently reported quarter was $38.70M and diluted EPS was $0.27.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for MOD since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With MOD analysts setting a high price target of $57.00 and a low target of $45.00, the average target price over the next 12 months is $51.25. Based on these targets, MOD could surge 26.64% to reach the target high and fall by -0.02% to reach the target low. Reaching the average price target will result in a growth of 13.86% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Summary of Insider Activity:

Insiders traded MOD stock several times over the past three months with 11 Buys and 6 Sells. In these transactions, 68,099 shares were bought while 72,774 shares were sold. The number of buy transactions has increased to 24 while that of sell transactions has risen to 34 over the past year. The total number of shares bought during that period was 217,628 while 239,699 shares were sold.