MasterBrand (NYSE:MBC) Shares Gap Down Following Weak Earnings

MasterBrand, Inc. (NYSE:MBC) shares gapped down prior to trading on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $9.48, but opened at $8.87. MasterBrand shares last traded at $8.93, with a volume of 337,589 shares traded.

The company reported $0.05 earnings per share for the quarter, missing the consensus estimate of $0.10 by ($0.05). MasterBrand had a negative net margin of 0.07% and a positive return on equity of 7.35%. The company had revenue of $815.20 million during the quarter, compared to the consensus estimate of $743.05 million. During the same quarter last year, the firm earned $0.40 EPS. The business’s revenue was up 11.5% on a year-over-year basis. MasterBrand has set its Q3 2026 guidance at -0.050-0.030 EPS.

Analyst Ratings Changes

A number of research firms recently issued reports on MBC. Wall Street Zen raised shares of MasterBrand from a “strong sell” rating to a “sell” rating in a research note on Saturday, June 20th. Weiss Ratings reiterated a “sell (d)” rating on shares of MasterBrand in a report on Monday, July 13th. One research analyst has rated the stock with a Sell rating, Based on data from MarketBeat, the stock has a consensus rating of “Sell”.

Insider Activity

In other MasterBrand news, CFO Andrea Helen Simon bought 5,000 shares of MasterBrand stock in a transaction dated Thursday, June 4th. The shares were purchased at an average cost of $8.56 per share, with a total value of $42,800.00. Following the transaction, the chief financial officer directly owned 497,341 shares of the company’s stock, valued at $4,257,238.96. This represents a 1.02% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Philip D. Fracassa purchased 5,000 shares of the stock in a transaction that occurred on Thursday, June 11th. The shares were acquired at an average cost of $9.11 per share, with a total value of $45,550.00. Following the completion of the transaction, the director owned 45,041 shares in the company, valued at $410,323.51. This trade represents a 12.49% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last quarter, insiders have purchased 81,587 shares of company stock worth $696,347. 2.80% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Pertento Partners LLP bought a new stake in MasterBrand in the fourth quarter worth $42,835,000. Coliseum Capital Management LLC increased its holdings in shares of MasterBrand by 42.4% during the fourth quarter. Coliseum Capital Management LLC now owns 10,772,614 shares of the company’s stock valued at $118,930,000 after acquiring an additional 3,209,323 shares in the last quarter. Cooke & Bieler LP purchased a new position in shares of MasterBrand in the 4th quarter worth about $31,255,000. Monarch Alternative Capital LP purchased a new position in shares of MasterBrand in the 1st quarter worth about $16,620,000. Finally, Stonehill Capital Management LLC raised its position in shares of MasterBrand by 311.5% in the 3rd quarter. Stonehill Capital Management LLC now owns 1,954,780 shares of the company’s stock worth $25,744,000 after purchasing an additional 1,479,780 shares during the last quarter. Institutional investors own 87.32% of the company’s stock.

MasterBrand Trading Down 5.5%

The stock’s 50 day moving average is $8.95 and its 200-day moving average is $9.42. The company has a market cap of $1.15 billion, a P/E ratio of -447.78 and a beta of 1.44. The company has a current ratio of 2.08, a quick ratio of 1.31 and a debt-to-equity ratio of 0.82.

About MasterBrand

MasterBrand Inc is one of the largest manufacturers of cabinetry and home storage solutions in North America. The company specializes in designing, producing and distributing kitchen and bath cabinetry for both new construction and the remodeling markets. Its offerings span a broad spectrum of styles and price points, serving homebuilders, home improvement retailers and independent dealers.

MasterBrand’s product portfolio includes framed and frameless cabinet lines, bath vanities, closet systems and other organizational accessories.