Zacks Investment Research downgraded shares of B&G Foods (NYSE:BGS) from a hold rating to a sell rating in a research report sent to investors on Tuesday.
According to Zacks, “B&G Foods which has lagged the industry 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 have also weighed in on BGS. Royal Bank of Canada reiterated a buy rating and issued a $39.00 price target on shares of B&G Foods in a report on Friday, August 3rd. ValuEngine upgraded shares of B&G Foods from a strong sell rating to a sell rating in a report on Thursday, August 9th. Citigroup decreased their price target on shares of B&G Foods from $34.00 to $33.00 and set a buy rating on the stock in a report on Wednesday, October 31st. Finally, Credit Suisse Group lifted their price target on shares of B&G Foods from $21.00 to $23.00 and gave the company an underperform rating in a report on Wednesday, October 31st. Three equities research analysts have rated the stock with a sell rating, two have assigned a hold rating and six have assigned a buy rating to the company. B&G Foods presently has a consensus rating of Hold and an average target price of $34.22.
B&G Foods (NYSE:BGS) last announced its quarterly earnings results on Tuesday, October 30th. The company reported $0.57 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.56 by $0.01. The company had revenue of $422.60 million for the quarter, compared to analyst estimates of $429.53 million. B&G Foods had a net margin of 11.09% and a return on equity of 16.01%. B&G Foods’s revenue for the quarter was up 4.1% on a year-over-year basis. During the same quarter last year, the business earned $0.55 EPS. Sell-side analysts forecast that B&G Foods will post 2.02 earnings per share for the current fiscal year.
The firm also recently announced a quarterly dividend, which will be paid on Wednesday, January 30th. Stockholders of record on Monday, December 31st will be paid a $0.475 dividend. This represents a $1.90 dividend on an annualized basis and a dividend yield of 6.24%. The ex-dividend date is Friday, December 28th. B&G Foods’s dividend payout ratio is presently 89.62%.
In other news, Director Cheryl M. Palmer sold 12,000 shares of the firm’s stock in a transaction on Tuesday, November 13th. The shares were sold at an average price of $29.52, for a total value of $354,240.00. Following the transaction, the director now owns 12,839 shares of the company’s stock, valued at approximately $379,007.28. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Company insiders own 2.90% of the company’s stock.
Hedge funds have recently modified their holdings of the company. Macquarie Group Ltd. purchased a new position in shares of B&G Foods in the 2nd quarter valued at $185,000. Cubist Systematic Strategies LLC purchased a new position in shares of B&G Foods in the 2nd quarter valued at $205,000. First Allied Advisory Services Inc. purchased a new position in shares of B&G Foods in the 2nd quarter valued at $216,000. Selway Asset Management purchased a new position in shares of B&G Foods in the 2nd quarter valued at $217,000. Finally, GSA Capital Partners LLP purchased a new position in shares of B&G Foods in the 3rd quarter valued at $225,000. 99.65% of the stock is currently owned by institutional investors and hedge funds.
About B&G Foods
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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