The Manitowoc Company, Inc. (MTW) Demands Investors Rethink Their Bets

It has been reported that multiple insider activity took place at The Manitowoc Company, Inc. (MTW). Executive Vice President Ravenscroft Aaron H. sold 3,191 shares for $20,697 in transaction occurred on 2019/03/29. After making this transaction, Executive Vice President owns a direct stake of 5 shares, worth $358,679, as per the last closing price.

President & CEO, PENNYPACKER BARRY had invested in 19,600 shares for $79,851 through a trade on 2018/06/14. Following this activity, the insider holds -31 shares worth $1,383,814 as of recent close.

Vanguard Small-Cap Index Fund revealed as top hedge fund owner in The Manitowoc Company, Inc. (MTW) with a stake of over 902,207 MTW shares as of September 29, with a market value of approx. $21.64M as of today. The second largest holder, Vanguard Total Stock Market Index Fund, with 888680 shares which equates to $21.32M worth of the stock. At third is Victory Portfolios-Victory Integrity Small Cap Value Fund, which stood pat with 818700 shares, a 3.19% position in The Manitowoc Company, Inc., worth $19.64M. The insider holding in stood at 1.2% while institutions hold 83.3%.

The Manitowoc Company, Inc. (NYSE:MTW) rose 1.88% in recent trade and currently has a stock-market value of $615.39M. The shares finished at $17.33, after trading as low as $17.01 earlier in the session. It hit an intraday high Wednesday at $17.36. Trading activity significantly weakened as the volume at ready counter decreased to 169,549 shares versus 323,515 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 508,901 shares. The stock is now 31.09% above against its bear-market low of $13.22 on December 24, 2018. It has retreated -70.28% since it’s 52-week high of $29.51 reached in April. Now the market price is down -38.63% on the year and up 17.33% YTD.

MTW stock’s 50 day simple moving average (SMA 50) price is $17.22 and its 200-day simple moving average (SMA 200) price is $20. The company’s stock currently has a total float of 34.98M shares. Its weekly volatility is hovering around 2.21% and felt 2.8% volatility in price over a month. On the upside, the share price will test short term resistance at around $17.46. On a downside, the stock is likely to find some support, which begins at $17.11. The failure to get near-term support could push it to $16.88.

It had seen a positive analyst call from Robert W. Baird, which upgraded the stock from Neutral to Outperform on September 20. Analysts at Goldman, shed their positive views on July 17 by lowering it fromNeutral to Sell. The stock won favor of SunTrust analysts who expressed their confidence in it using an upgrade from Hold to Buy on June 06. Stifel, reiterated their call for Buy, on February 12. On the other hand, they had set new target price to $42 versus $48.

Moreover, it trades for 10.22 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 1.03x price/book and 0.33x price/sales. Compared to others, The Manitowoc Company, Inc. is in a different league with regards to profitability, having net margins of -3.6%. To put some perspective around this, the industry’s average net margin is 6.11%. MTW’s ROE is -10.2%, which is also considerably worse than the industry’s ROE of 9.22%. It’s also very liquid in the near term, with a current ratio of 1.7. The stock has a debt/capital of 0.45.

Shares of MTW have gained 3.2% since the company’s most recent earnings report. Over the past 12 fiscal quarters, The Manitowoc Company, Inc. (NYSE:MTW) has topped consensus earnings estimates in 7 quarters (58%), missed earnings in 4 quarters (33%), whereas at 1 occasion EPS met analyst expectations. MTW last reported earnings that exceeded expectations. The company raked in $0.16 per share, -100% change on the same period last year. That was better than consensus for 0. Revenue for the recent quarter stood at $515.3 million, up 7% on last year and above the $487.98 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $497 million to $525 million, which should be compared with $472.93 million generated last year. EPS is seen in a range of $0.37 to $0.64, against the $0.41 reported a year ago.