Hostess Brands (TWNK) Raised to “Hold” at Zacks Investment Research

Zacks Investment Research upgraded shares of Hostess Brands (NASDAQ:TWNK) from a sell rating to a hold rating in a report released on Friday morning.

According to Zacks, “Hostess Brands, Inc. is involved in developing, manufacturing, marketing, selling and distributing sweet goods primarily in the United States. The company produces new and classic treats which includes Ding Dongs, Ho Hos, Donettes, Fruit Pies as well as Twinkies and CupCakes. Hostess Brands, Inc. is based in Kansas City, Missouri. “

A number of other analysts have also commented on the company. JPMorgan Chase & Co. raised Hostess Brands from a neutral rating to an overweight rating and increased their price objective for the company from $13.00 to $14.00 in a research note on Thursday, December 6th. Citigroup set a $12.00 price objective on Hostess Brands and gave the company a hold rating in a research note on Monday, November 12th. BidaskClub lowered Hostess Brands from a hold rating to a sell rating in a research note on Friday, September 21st. UBS Group set a $12.00 price target on Hostess Brands and gave the stock a hold rating in a research note on Thursday, November 8th. Finally, Royal Bank of Canada decreased their price target on Hostess Brands from $14.00 to $12.00 and set a sector perform rating on the stock in a research note on Thursday, November 8th. Eight research analysts have rated the stock with a hold rating and four have issued a buy rating to the company. The company presently has an average rating of Hold and an average target price of $14.11.

TWNK opened at $11.35 on Friday. The company has a current ratio of 2.13, a quick ratio of 1.85 and a debt-to-equity ratio of 0.64. The firm has a market cap of $1.45 billion, a P/E ratio of 18.02 and a beta of 0.47. Hostess Brands has a 52 week low of $9.86 and a 52 week high of $15.04.

Hostess Brands (NASDAQ:TWNK) last posted its quarterly earnings data on Wednesday, November 7th. The company reported $0.10 EPS for the quarter, missing analysts’ consensus estimates of $0.12 by ($0.02). The company had revenue of $211.00 million for the quarter, compared to analyst estimates of $208.64 million. Hostess Brands had a net margin of 27.74% and a return on equity of 3.76%. The firm’s revenue was up 9.7% on a year-over-year basis. During the same period in the previous year, the business earned $0.14 EPS. Equities analysts predict that Hostess Brands will post 0.52 earnings per share for the current fiscal year.

Large investors have recently modified their holdings of the business. SG Americas Securities LLC acquired a new stake in Hostess Brands in the 2nd quarter worth about $181,000. Stevens Capital Management LP acquired a new stake in Hostess Brands in the 3rd quarter worth about $156,000. Verition Fund Management LLC purchased a new position in shares of Hostess Brands in the 2nd quarter worth about $208,000. State Board of Administration of Florida Retirement System purchased a new position in shares of Hostess Brands in the 3rd quarter worth about $170,000. Finally, Boyar Asset Management Inc. purchased a new position in shares of Hostess Brands in the 3rd quarter worth about $183,000. 85.10% of the stock is currently owned by hedge funds and other institutional investors.

Hostess Brands Company Profile

Hostess Brands, Inc, a packaged food company, develops, manufactures, markets, sells, and distributes fresh sweet baked goods in the United States. It primarily offer coffee cakes, cinnamon rolls, honey buns, brownies, bread and buns, jumbo muffins, and eclairs under the Twinkies, CupCakes, Ding Dongs, Zingers, HoHos, Donettes, Dolly Madison, and Superior on Main brands.

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