Research analysts at BMO Capital Markets have revised their price target for Mister Car Wash (NYSE: MCW), decreasing it from $11.00 to $9.00. This change was announced in a report issued on July 30, 2023, indicating a potential upside of approximately 57.62% from the company’s previous close. Despite the adjustment, BMO maintains an “outperform” rating on the stock.
Several other financial institutions have also adjusted their outlook on Mister Car Wash. Stifel Nicolaus lowered its target price from $8.50 to $7.50, assigning a “hold” rating. In a separate report, BTIG Research began coverage with a “neutral” rating. Meanwhile, Piper Sandler cut its target from $11.00 to $8.00 while maintaining an “overweight” rating. Additionally, The Goldman Sachs Group initiated coverage with a “sell” rating and a target price of $6.25. Morgan Stanley also adjusted its target down from $9.00 to $7.50, retaining an “equal weight” rating.
Overall, the consensus rating for Mister Car Wash is classified as “Hold,” with an average target price set at $8.00, as reported by MarketBeat.com.
Recent Earnings Report Highlights Challenges
Mister Car Wash’s most recent earnings report, released on July 30, 2023, revealed a $0.11 earnings per share (EPS) figure for the quarter. This result fell short of analysts’ expectations, which had forecasted an EPS of $0.13. The company reported revenue of $265.42 million, missing the anticipated $271.83 million. Despite the challenges, revenue increased by 4.1% compared to the same quarter last year.
The company’s net margin stood at 7.06%, with a return on equity of 10.49%. Looking ahead, analysts project that Mister Car Wash will achieve an EPS of $0.33 for the current fiscal year.
Insider Transactions Raise Questions
In recent insider trading activities, Veronica Rogers, a director at Mister Car Wash, sold 5,205 shares on May 22, 2023, at an average price of $7.06, leading to a total transaction value of approximately $36,747. Following this sale, she holds 27,880 shares, valued around $196,832, reflecting a 15.73% decrease in her stock ownership.
Another significant transaction was executed by insider Joseph Duane Matheny, who sold 102,456 shares on June 23, 2023, at an average price of $6.30, amounting to $645,472.80. Matheny now has 88,196 shares remaining, valued at approximately $555,634.80, a substantial 53.74% reduction in his holdings. Over the last 90 days, insiders have sold a total of 266,355 shares valued at $1.73 million.
Institutional Investor Activity
Changes in institutional investor positions have also emerged. GAMMA Investing LLC increased its holdings in Mister Car Wash by 87.4% during the second quarter, now owning 5,645 shares valued at approximately $34,000. Other notable institutional investments include Quantinno Capital Management LP and Quarry LP, both acquiring new stakes in the company during the fourth quarter, valued at around $77,000 and $79,000 respectively.
As Mister Car Wash navigates these market fluctuations, investors and analysts alike will be closely monitoring the company’s performance and strategic decisions moving forward.
