Alto Ingredients, Inc. (NASDAQ:ALTO) experienced a notable increase in short interest during the month of August. According to data from September 17, 2023, the total number of shares sold short reached 1,940,000, which represents a growth of 14.8% from the figure recorded on August 15th, when it stood at 1,690,000 shares. At present, approximately 2.7% of the company’s shares are being sold short. Based on the average daily trading volume of 1,480,000 shares, the current days-to-cover ratio is around 1.3 days.
In an independent research note published on Tuesday, August 8th, investment firm HC Wainwright reaffirmed its “buy” rating for Alto Ingredients and established a price objective of $7.00 per share.
Alto Ingredients is primarily engaged in the production and marketing of specialized alcohols and essential ingredients within the United States. The company’s operations consist of three key segments: Marketing and Distribution, Pekin Production, and Other Production. It offers specialty alcohols that find application in various sectors such as mouthwash manufacturing, cosmetics production pharmaceuticals development, hand sanitizers formulation disinfectants production as well as cleaners used in health care settings or home and beauty markets. Additionally, it provides grain neutral spirits that are utilized in alcoholic beverages such as vodka or gin and also finds use in vinegar preparation; further diversification includes corn germ used for producing corn oils and carbon dioxide applied in beverage carbonation or dry ice production.
Essential ingredients offered by Alto Ingredients include dried yeast chips predominantly employed for baking purposes or brewing processes by food manufacturers; corn gluten meal applied primarily for animal feedstock needs; corn gluten feed that serves as animal protein supplement within livestock nutrition; distiller’s grains acting as an important source of energy value-rich animal feedstock; and liquid feed designed for animal feed preparation for both commercial animal feed producers and pet food applications.
Notably, several hedge funds have recently altered their investments in Alto Ingredients. State Street Corp boosted its holdings in the company by 84.5% during the second quarter; it now owns a staggering 8,862,664 shares amounting to approximately $32,880,000. Vanguard Group Inc., on the other hand, increased its holdings in the third quarter by 5.8%, with 3,841,738 shares valued at around $13,984,000. Dimensional Fund Advisors LP expanded its holdings during the first quarter by 6.9%, amassing 2,359,003 shares worth $3,538,000. Furthermore, AQR Capital Management LLC elevated its stake in Alto Ingredients by 36.0% during the initial quarter and now has a total ownership of 2,353,833 shares priced at approximately $3,531,000. Lastly, Charles Schwab Investment Management Inc. augmented its position during the second quarter by 15.2%, holding a total of 1,870,496 shares worth an estimated $5,406,000. Overall institutional investors and hedge funds currently own approximately 35.38% of Alto Ingredients’ outstanding stock.
This increase in short interest coupled with positive ratings from investment firms like HC Wainwright shines a spotlight on Alto Ingredients’ potential for growth and performance within its target markets. Investors may find this information useful when considering their future investment strategies regarding the company’s stocks.
Alto Ingredients, Inc.
ALTO
Buy
Updated on: 04/12/2023
Financial Health
Healthy
Debt to equity ratio: Buy
Price to earnings ratio: Sell
Price to book ratio: Buy
DCF: Strong Buy
ROE: Sell
Alto Ingredients, Inc.: Promising Potential and Resilient Growth in the Specialty Alcohols and Essential Ingredients Market
Alto Ingredients, Inc., a prominent producer and marketer of specialty alcohols and essential ingredients in the United States, has recently garnered attention in the market. The company operates across three segments: Marketing and Distribution, Pekin Production, and Other Production. Its diverse product portfolio includes a wide range of specialty alcohols used in various sectors such as mouthwash, cosmetics, pharmaceuticals, hand sanitizers, disinfectants, and cleaners for health, home, and beauty markets.
Furthermore, Alto Ingredients offers grain neutral spirits that find application in alcoholic beverages and vinegar production. It also provides corn germ used to extract corn oils and carbon dioxide utilized for beverage carbonation and dry ice production. Additionally, the company caters to the demands of the animal feed industry by supplying essential ingredients like dried yeast, corn gluten meal, corn gluten feed, distiller’s grains, and liquid feed.
As of September 17th, ALTO shares opened at $4.39. With a market capitalization of $333.25 million and a price-to-earnings ratio of -4.72 along with a beta value of 2.55; Alto Ingredients shows promising potential in the market despite several ups and downs throughout the year. Over the past year alone, its stock fluctuated between a low of $1.20 and a high of $4.46.
When assessing the company’s financial status further, it is worth noting that Alto Ingredients has successfully maintained a debt-to-equity ratio of 0.27—a testament to its prudent approach towards financial management. In terms of liquidity analysis indicators like current ratio (3.06) and quick ratio (1.85), Alta Ingredients demonstrates its ability to meet short-term obligations effectively while manifesting operational efficiency.
Moving averages play an essential role in predicting trends within financial markets. For Alto Ingredients’, its 50-day moving average stands at $3.82 compared to the 200-day moving average of $2.64, indicative of a positive progression over time.
A significant milestone for Alto Ingredients was its recent earnings report on August 7th. The company reported earnings per share (EPS) of $0.10 for the quarter, surpassing analysts’ expectations by an impressive $0.17. Furthermore, its revenue for the quarter reached $317.30 million compared to a consensus estimate of $306.53 million.
Despite these encouraging results, it is essential to consider some less favorable aspects of the company’s performance. Alto Ingredients had a negative return on equity (ROE) of 19.06% along with a negative net margin of 5.14%. However, these setbacks have not hindered market analysts from maintaining an optimistic outlook for the company’s future prospects.
Looking ahead, market experts anticipate that Alto Ingredients will post an EPS of 0.15 for the current fiscal year, highlighting their confidence in the company’s resilience and ability to sustain growth.
In conclusion, Alto Ingredients, Inc., stands as a leading player in the production and distribution of specialty alcohols and essential ingredients within the United States market. Despite facing challenges associated with negative ROE and net margins, it has managed to demonstrate promising financial indicators such as resilient stock prices, considerable revenue growth, and effective management of debt-to-equity ratios— showcasing its potential for long-term success in this competitive industry.
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