Alto Ingredients (NASDAQ:ALTO) Announces Earnings Results, Beats Expectations By $0.07 EPS

Alto Ingredients (NASDAQ:ALTO) announced its earnings results on Wednesday. The company reported $0.15 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.08 by $0.07, FiscalAI reports. The business had revenue of $245.70 million during the quarter, compared to analyst estimates of $231.24 million. Alto Ingredients had a return on equity of 9.77% and a net margin of 3.20%.

Here are the key takeaways from Alto Ingredients’ conference call:

• Profitability improved sharply in Q2, with net income of $11.4 million, or $0.15 per share, versus a $11.3 million loss a year earlier. Adjusted EBITDA rose to $23.7 million, supported by stronger ethanol margins, higher essential-ingredient values, lower corn costs, and $5.1 million of 45Z tax-credit earnings.
• Management expects to generate at least $15 million in net 45Z tax-credit proceeds this year, with $7.9 million accrued through the first half and discussions underway to monetize the 2026 credits.
• Alto completed an approximately 8% Pekin dry-mill capacity expansion, or about 5 million additional annual gallons, and expects the full earnings benefit in Q4. The company also cited additional high-return projects in CO2 monetization, capacity expansion, and efficiency improvements, with average paybacks of just over one year.
• The company redirected renewable-fuel volumes toward stronger U.S. domestic markets as Middle East disruptions increased freight costs and reduced vessel availability, compressing the U.S.-to-Europe arbitrage and making Brazilian exports more competitive in Europe.
• Alto established a $50 million at-the-market equity program to provide capital flexibility for future projects. Although management said any issuance would be disciplined, using the program could dilute existing shareholders.

Alto Ingredients Trading Down 4.3%

ALTO traded down $0.23 during trading on Wednesday, reaching $5.06. 2,387,512 shares of the stock traded hands, compared to its average volume of 1,975,837. The company has a quick ratio of 2.54, a current ratio of 3.81 and a debt-to-equity ratio of 0.29. The stock’s 50-day moving average is $5.30 and its 200 day moving average is $4.42. Alto Ingredients has a 12 month low of $0.92 and a 12 month high of $6.11. The stock has a market capitalization of $392.10 million, a PE ratio of 13.68 and a beta of 0.17.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on the company. Weiss Ratings reissued a “hold (c)” rating on shares of Alto Ingredients in a research note on Friday. Zacks Research lowered Alto Ingredients from a “strong-buy” rating to a “hold” rating in a research note on Monday, July 6th. Finally, HC Wainwright upped their target price on Alto Ingredients from $5.50 to $10.00 and gave the company a “buy” rating in a report on Thursday, May 7th. One research analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat, Alto Ingredients presently has an average rating of “Hold” and a consensus target price of $10.00.

Insider Buying and Selling at Alto Ingredients

In other Alto Ingredients news, Director Gilbert E. Nathan acquired 20,000 shares of the company’s stock in a transaction dated Tuesday, May 12th. The shares were bought at an average cost of $4.61 per share, with a total value of $92,200.00. Following the purchase, the director directly owned 769,741 shares of the company’s stock, valued at $3,548,506.01. This trade represents a 2.67% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 4.28% of the company’s stock.

Institutional Investors Weigh In On Alto Ingredients

A number of hedge funds have recently added to or reduced their stakes in ALTO. Vontobel Holding Ltd. bought a new position in shares of Alto Ingredients during the 4th quarter worth approximately $33,000. CreativeOne Wealth LLC acquired a new position in shares of Alto Ingredients during the 4th quarter valued at $46,000. Virtu Financial LLC bought a new position in Alto Ingredients during the third quarter worth $52,000. JPMorgan Chase & Co. boosted its stake in Alto Ingredients by 2,539,250.0% during the second quarter. JPMorgan Chase & Co. now owns 50,787 shares of the company’s stock worth $58,000 after acquiring an additional 50,785 shares in the last quarter. Finally, Hudson Bay Capital Management LP acquired a new stake in Alto Ingredients in the fourth quarter worth $91,000. 42.44% of the stock is currently owned by institutional investors.

Alto Ingredients Company Profile

Alto Ingredients, Inc (NASDAQ: ALTO) is a diversified producer of alcohol-based products and specialty ingredients for industrial, food, beverage and personal care applications. The company’s core offering centers on ethanol produced for fuel markets, as well as an expanding portfolio of natural and organic alcohols, glycerin and other ingredient solutions. Alto’s product lines serve a range of end markets, including renewable fuels, confectionery, flavorings, cosmetics and sanitizers.

Headquartered in Dallas, Texas, Alto Ingredients operates a network of production facilities across the United States.