Mister Car Wash (NYSE: MCW) has recently experienced a notable shift in its stock ratings, as analysts at Zacks Research upgraded the company’s shares from a strong sell rating to a hold rating. This upgrade, published in a report on October 30, 2023, reflects a growing confidence among analysts following the company’s latest quarterly earnings announcement.
In addition to Zacks’ upgrade, other financial institutions have also provided insights into Mister Car Wash’s stock performance. Guggenheim has set a price target of $8.00 while designating the stock as a “buy.” Conversely, UBS Group adjusted their target price down from $7.25 to $6.25, assigning a “neutral” rating on October 30. Stephens upgraded their rating from “equal weight” to “overweight,” but reduced their price objective to $6.25.
The stock’s ratings reflect a mixed sentiment among analysts. Currently, seven equities research analysts have rated Mister Car Wash with a buy rating, six have given it a hold rating, and one has issued a sell rating. According to data from MarketBeat.com, the average rating stands at “hold” with an average target price of $7.23.
Quarterly Earnings Exceed Expectations
On October 29, 2023, Mister Car Wash released its quarterly earnings report, showcasing a positive trend in its financial performance. The company reported earnings per share (EPS) of $0.11, surpassing analysts’ consensus estimate of $0.10 by a narrow margin. Revenue for the quarter reached $263.42 million, exceeding the expected $261.47 million.
Mister Car Wash also reported a return on equity of 10.49% and a net margin of 7.06%. The company’s quarterly revenue saw an increase of 5.7% compared to the same period last year, when it posted an EPS of $0.09. Looking ahead, Mister Car Wash has set its guidance for the fiscal year 2025 at an EPS range of $0.420 to $0.430. Analysts project an average EPS of $0.33 for the current year.
Institutional Investors Take Action
Recent trading activities indicate that institutional investors are actively adjusting their stakes in Mister Car Wash. During the third quarter, CIBC Bancorp USA Inc. entered a new position valued at approximately $56,000. PharVision Advisers LLC significantly increased its holdings by 227.0%, now owning 45,428 shares worth approximately $242,000.
Furthermore, Verition Fund Management LLC expanded its stake by 73.7%, holding 181,048 shares valued at around $965,000 after acquiring an additional 76,828 shares. Quarry LP also raised its stake by 65.7%, now owning 7,604 shares worth about $41,000. Lastly, Qube Research & Technologies Ltd increased its holdings by 5.6% to 2,065,264 shares valued at roughly $11,008,000.
With these developments, Mister Car Wash continues to capture the attention of both analysts and investors, reflecting its potential for growth in the competitive car wash industry. The company, which operates conveyorized car wash services across the United States, appears to be positioning itself favorably for future financial performance.
