According to a report from Bloomberg.com, shares of Mister Car Wash, Inc. (NYSE:MCW) are currently given an average rating of “Hold” by seven ratings firms that cover the stock. Among these analysts, four have recommended holding the stock, while three have issued a buy recommendation. The average 1-year price target for the stock, based on reports from the past year, is $10.00.
On Friday, MCW stock opened at $5.76 with a market capitalization of $1.80 billion. The stock has a price-to-earnings ratio of 22.15 and a price-to-earnings-growth ratio of 4.07, indicating its valuation relative to earnings and future growth potential. The company also has a beta of 1.21, implying that it is more volatile than the overall market.
Mister Car Wash has been experiencing fluctuations in its share price over the past year, with a low of $5.62 and a high of $11.14. Currently, the stock is below both its 50-day moving average of $7.54 and its two-hundred day moving average of $8.33.
In terms of financial health, Mister Car Wash carries a debt-to-equity ratio of 1.05 and has current and quick ratios below 1, indicating relatively weak liquidity levels compared to its short-term obligations.
Looking at recent trading activity, several large investors have purchased and sold shares of Mister Car Wash in recent quarters. Brown Advisory Inc., for example, increased its stake in the company by 3.2% during the second quarter by acquiring an additional 360,227 shares.
BlackRock Inc., one of the largest investment management companies globally, also raised its holdings in Mister Car Wash by 2.6% during the first quarter.
Additionally, Wasatch Advisors Inc., Vanguard Group Inc., and FIL Ltd have all reported increases in their holdings of Mister Car Wash shares during previous periods. These institutional investors now collectively own millions of shares in the company.
In terms of earnings performance, Mister Car Wash released its latest financial results on August 3rd. The company reported earnings per share (EPS) of $0.07 for the quarter, slightly below analysts’ consensus estimates of $0.08 EPS. Nonetheless, Mister Car Wash maintained a net margin of 10.06% and a return on equity of 11.61%. The quarter’s revenue was $236.89 million, which fell short of analyst expectations.
Equities research analysts are projecting that Mister Car Wash will post an EPS of 0.26 for the current year.
Overall, while some analysts recommend buying Mister Car Wash stock, others suggest holding it. Investors should carefully consider these ratings and assess the company’s financials and recent performance before making any investment decisions regarding MCW stock.
Please note that the information provided is current as per the date mentioned above and is subject to change based on future developments within the market or within the company itself.
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Mixed Analyst Ratings and Insider Selling Cast Doubt on Mister Car Wash’s Future
Mister Car Wash, a prominent car wash chain, has recently received attention from several research analysts who have issued reports on the company’s stock. On September 8th, William Blair initiated coverage on Mister Car Wash and gave it an “outperform” rating. Similarly, in a report on June 29th, Guggenheim also started coverage and provided a “buy” rating with a price target of $11.00 for the company.
However, not all the reports were as optimistic. Morgan Stanley recently decreased their price objective on Mister Car Wash from $10.00 to $7.00 and gave it an “equal weight” rating in their report released on September 11th. Despite this reduction in price target, they maintained their neutral stance on the stock.
Despite some mixed views, there was positive news for Mister Car Wash as well. Piper Sandler upgraded their rating of the company from “neutral” to “overweight” and increased their price objective from $9.00 to $12.00 in a research report published on August 28th.
In addition to these analyst reports, another significant development regarding Mister Car Wash involves its CEO John Lo-Minn Lai. On July 10th, Lai sold 198,200 shares of the company’s stock at an average price of $9.74 per share, resulting in a total value of $1,930,468. Following this sale, Lai now owns 2,564,226 shares of Mister Car Wash directly and holds them at a value of $24,975,561.24.
This transaction was disclosed in a document filed with the Securities & Exchange Commission (SEC), which can be accessed through the provided hyperlink.
Moreover, it is important to note that Lai made another sale of the business’s stock on July 10th when he sold 198,200 shares at an average price of $9.74 per share, amounting to a total value of $1,930,468. Following this transaction, the CEO now possesses 2,564,226 shares in Mister Car Wash with an approximate valuation of $24,975,561.24. This sale was also disclosed in a filing with the SEC and information about it can be obtained from their official website.
Apart from Lai’s activity, CFO Jedidiah Marc Gold sold 4,079 shares of Mister Car Wash stock on June 26th at an average price of $8.46 per share. The total transaction value amounted to $34,508.34. Following this sale, Gold now holds 23,588 shares of the company’s stock with an approximate value of $199,554.48.
It is worth noting that insider selling has been significant for Mister Car Wash recently. Over the past 90 days alone, insiders have sold a total of 1,306,609 shares of company stock with a combined worth of $10,205,804. This represents approximately 71.20% ownership by company insiders.
In conclusion, there seems to be a mixture of opinions regarding the future performance and prospects of Mister Car Wash as indicated by the various analyst reports. While some analysts are optimistic about the stock and highlight its potential for outperformance in the market, others have expressed more caution and lowered their price targets.
Furthermore, the recent sales activity by CEO John Lo-Minn Lai and CFO Jedidiah Marc Gold adds an interesting dynamic to the situation. The selling actions by company insiders may raise questions about their confidence in the future trajectory of Mister Car Wash.
Investors and market participants will likely continue monitoring developments closely to assess whether Mister Car Wash’s performance aligns with analyst ratings and if further insider transactions occur that provide insight into the health and prospects of the company moving forward.
