MDU Should I Buy
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MDU Resources Group Inc is not a strong buy at the moment for a beginner investor with a long-term strategy. The stock lacks significant positive catalysts, and technical indicators are neutral. While the company has shown some financial growth, recent hedge fund activity and analyst ratings suggest limited upside potential in the near term.
The MACD histogram is negative (-0.0294) and contracting, RSI is neutral at 55.111, and moving averages are converging, indicating no clear trend. The stock is trading near its pivot level of 20.417, with resistance at 20.883 and support at 19.951.
The company also reported a 38.33% YoY increase in net income and a 37.04% YoY increase in EPS in Q4 2025.
Corvex Management sold its entire position in MDU, signaling a lack of confidence from a major institutional investor. Analysts have lowered price targets, and the stock's valuation is constrained by regulatory gaps and limited growth potential. Revenue dropped slightly (-0.29% YoY) in Q4 2025.
In Q4 2025, revenue decreased by 0.29% YoY to $534 million. However, net income increased by 38.33% YoY to $76.3 million, and EPS rose by 37.04% YoY to $0.37. Gross margin improved by 6.74% YoY to 45.6%. The company projects EPS between $0.93 and $1.00 for 2026.
BofA maintains a Buy rating but lowered the price target to $22 from $23, citing intact capital frameworks and on-schedule projects. Freedom Capital initiated coverage with a Hold rating and a $20 price target, citing valuation concerns and regulatory challenges.
