Milacron (MCRN) Downgraded to Strong Sell at Zacks Investment Research

Milacron (NYSE:MCRN) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a report issued on Monday.

According to Zacks, “In 2018, Milacron's orders declined 7% year over year to $1211.2 million. New orders were primarily impacted by a decline in the equipment business in Europe and North America, a slump in hot runner business in China and the impact of product line de-selection within the APPT segment, partially mitigated by an increase in the global fluids business.  Milacron projects sales to decline 3-4% in 2019, including an anticipated headwind of 1% from foreign currency translation. Imposition of tariffs on steel prices will continue to impact Milacron’s margins and is projected to have a $4.2 million impact on Milacron’s results in 2019. Also the reduced usage of plastic due to environmental concerns will impact Milacron's results. The company has underperformed the industry over the past year. “

Separately, Robert W. Baird reduced their price target on Milacron from $24.00 to $21.00 and set an “outperform” rating for the company in a report on Thursday, February 21st. Two analysts have rated the stock with a sell rating and two have assigned a buy rating to the stock. The stock currently has an average rating of “Hold” and an average target price of $19.00.

MCRN traded up $0.27 during trading on Monday, reaching $12.95. The stock had a trading volume of 5,949 shares, compared to its average volume of 481,424. The company has a market cap of $980.84 million, a price-to-earnings ratio of 7.28, a price-to-earnings-growth ratio of 0.90 and a beta of 1.45. Milacron has a one year low of $11.35 and a one year high of $22.09.

Milacron (NYSE:MCRN) last posted its quarterly earnings data on Thursday, February 21st. The industrial products company reported $0.48 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.37 by $0.11. The business had revenue of $311.40 million during the quarter, compared to the consensus estimate of $309.64 million. Milacron had a negative return on equity of 90.07% and a net margin of 3.30%. The firm’s quarterly revenue was down 4.2% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.59 earnings per share. On average, sell-side analysts predict that Milacron will post 1.48 EPS for the current fiscal year.

In related news, insider Ling An-Heid sold 5,855 shares of Milacron stock in a transaction dated Monday, March 4th. The stock was sold at an average price of $14.03, for a total value of $82,145.65. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP Hugh C. Odonnell sold 3,021 shares of Milacron stock in a transaction dated Monday, March 4th. The stock was sold at an average price of $14.03, for a total value of $42,384.63. The disclosure for this sale can be found here. 2.70% of the stock is owned by company insiders.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. increased its holdings in Milacron by 3.2% in the 3rd quarter. Vanguard Group Inc. now owns 5,941,454 shares of the industrial products company’s stock worth $120,315,000 after buying an additional 183,531 shares in the last quarter. Vanguard Group Inc increased its holdings in Milacron by 3.2% in the 3rd quarter. Vanguard Group Inc now owns 5,941,454 shares of the industrial products company’s stock worth $120,315,000 after buying an additional 183,531 shares in the last quarter. Janus Henderson Group PLC increased its holdings in Milacron by 10.5% in the 3rd quarter. Janus Henderson Group PLC now owns 4,968,918 shares of the industrial products company’s stock worth $100,621,000 after buying an additional 471,245 shares in the last quarter. BlackRock Inc. increased its holdings in Milacron by 6.1% in the 4th quarter. BlackRock Inc. now owns 4,964,631 shares of the industrial products company’s stock worth $59,030,000 after buying an additional 287,313 shares in the last quarter. Finally, Victory Capital Management Inc. increased its holdings in Milacron by 173.8% in the 4th quarter. Victory Capital Management Inc. now owns 3,040,747 shares of the industrial products company’s stock worth $36,154,000 after buying an additional 1,930,308 shares in the last quarter. Institutional investors own 97.02% of the company’s stock.

About Milacron

Milacron Holdings Corp. manufactures, distributes, and services engineered and customized systems within the plastic technology and processing industry in the United States and internationally. The company operates through three segments: Advanced Plastic Processing Technologies (APPT), Melt Delivery and Control Systems (MDCS), and Fluid Technologies (Fluids).

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