Zacks Investment Research lowered shares of B&G Foods (NYSE:BGS) from a hold rating to a sell rating in a report issued on Wednesday morning.
According to Zacks, “B&G Foods which has seen its shares decline in the past three months, posted dismal third quarter 2018 results. During the quarter, both the top and bottom line missed estimates. Moreover, management lowered its 2018 view owing to divestiture of Pirate Brands to Hershey, as well as and repayment of long-term debt. The company remains concerned about the industry-wide freight cost headwinds. We note that Increased freight costs and higher interest expenses marred bottom line in the quarter. Unfortunately, freight costs are expected to remain high throughout the year, which is likely to keep margins under pressure. As a result, management narrowed its adjusted EBITDA view for 2018. However, B&G Foods remains poised on strategic acquisitions to boost growth. Further, the company is on track with its inventory reduction plans and also boasts a good history of returning value to its shareholders.”
A number of other equities analysts also recently commented on BGS. ValuEngine upgraded B&G Foods from a strong sell rating to a sell rating in a research note on Thursday, August 9th. Citigroup decreased their target price on B&G Foods from $34.00 to $33.00 and set a buy rating for the company in a research note on Wednesday, October 31st. Finally, Credit Suisse Group lifted their target price on B&G Foods from $21.00 to $23.00 and gave the company an underperform rating in a research note on Wednesday, October 31st. Three investment analysts have rated the stock with a sell rating, two have assigned a hold rating and six have given a buy rating to the stock. The company presently has a consensus rating of Hold and a consensus target price of $34.22.
NYSE:BGS opened at $29.79 on Wednesday. The stock has a market capitalization of $1.97 billion, a P/E ratio of 14.41 and a beta of 0.55. B&G Foods has a one year low of $22.00 and a one year high of $37.05. The company has a debt-to-equity ratio of 2.07, a current ratio of 1.61 and a quick ratio of 0.79.
B&G Foods (NYSE:BGS) last posted its quarterly earnings results on Tuesday, October 30th. The company reported $0.57 EPS for the quarter, topping the Zacks’ consensus estimate of $0.56 by $0.01. The business had revenue of $422.60 million during the quarter, compared to the consensus estimate of $429.53 million. B&G Foods had a return on equity of 16.01% and a net margin of 11.09%. The company’s revenue for the quarter was up 4.1% compared to the same quarter last year. During the same period last year, the firm earned $0.55 earnings per share. On average, analysts predict that B&G Foods will post 2.02 EPS for the current year.
The business also recently announced a quarterly dividend, which will be paid on Wednesday, January 30th. Shareholders of record on Monday, December 31st will be paid a $0.475 dividend. The ex-dividend date is Friday, December 28th. This represents a $1.90 dividend on an annualized basis and a yield of 6.38%. B&G Foods’s payout ratio is currently 89.62%.
In other B&G Foods news, Director Cheryl M. Palmer sold 12,000 shares of B&G Foods stock in a transaction that occurred on Tuesday, November 13th. The stock was sold at an average price of $29.52, for a total value of $354,240.00. Following the completion of the transaction, the director now directly owns 12,839 shares in the company, valued at $379,007.28. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders own 2.90% of the company’s stock.
A number of hedge funds have recently modified their holdings of BGS. BlackRock Inc. boosted its stake in B&G Foods by 15.6% in the second quarter. BlackRock Inc. now owns 9,170,456 shares of the company’s stock valued at $274,198,000 after acquiring an additional 1,234,551 shares during the period. Glenmede Trust Co. NA boosted its position in shares of B&G Foods by 146.6% during the second quarter. Glenmede Trust Co. NA now owns 1,109,493 shares of the company’s stock worth $33,174,000 after buying an additional 659,552 shares during the period. Mirae Asset Global Investments Co. Ltd. acquired a new position in shares of B&G Foods during the third quarter worth approximately $7,192,000. Davidson Kempner Capital Management LP acquired a new position in shares of B&G Foods during the second quarter worth approximately $7,475,000. Finally, Jennison Associates LLC boosted its position in shares of B&G Foods by 60.0% during the second quarter. Jennison Associates LLC now owns 665,042 shares of the company’s stock worth $19,885,000 after buying an additional 249,502 shares during the period. Institutional investors own 96.75% of the company’s stock.
B&G Foods Company Profile
B&G Foods, Inc manufactures, sells, and distributes a portfolio of shelf-stable and frozen foods in the United States, Canada, and Puerto Rico. Its products include frozen and canned vegetables, hot cereals, fruit spreads, canned meats and beans, bagel chips, spices, seasonings, hot sauces, wine vinegars, maple syrups, molasses, salad dressings, pizza crusts, Mexican-style sauces, dry soups, taco shells and kits, salsas, pickles, peppers, tomato-based products, puffed corn and rice snacks, cookies and crackers, nut clusters, and other specialty products.
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