Campbell Soup (NYSE:CPB) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Wednesday.
According to Zacks, “Campbell is progressing well with its cost savings plan as it raised the annualized savings target to $500 million, which is expected to be achieved by the end of fiscal 2020. Further, the company is making acquisitions to enhance its brand portfolio and accelerate growth. Notably, the company’s recent buyout of Snyder’s-Lance is expected to fortify Campbell's snacks portfolio. Further, the company delivered earnings beat in second-quarter fiscal 2018 after three straight misses, while sales turned positive after lagging estimates in the preceding four quarters. However, the stock has underperformed the industry in the past six months. This can be attributable to the persistent challenges in the U.S. soup category and Campbell Fresh division along with soft organic sales. Also, margins remain pressurized owing to higher cost inflation, escalated supply chain expenses and adverse mix, and are likely to decline in fiscal 2018.”
A number of other brokerages also recently issued reports on CPB. Piper Jaffray downgraded shares of Campbell Soup from a “neutral” rating to an “underweight” rating and set a $59.00 price objective for the company. in a research report on Wednesday, February 28th. Credit Suisse Group reaffirmed an “underperform” rating and issued a $40.00 price objective on shares of Campbell Soup in a research report on Monday, April 16th. JPMorgan Chase reiterated an “overweight” rating and issued a $48.00 target price (down from $50.00) on shares of Campbell Soup in a research note on Tuesday, February 20th. Citigroup upgraded shares of Campbell Soup from a “neutral” rating to a “buy” rating and boosted their target price for the company from $45.51 to $57.00 in a research note on Tuesday, January 16th. Finally, Wolfe Research began coverage on shares of Campbell Soup in a research note on Friday, January 26th. They issued a “market perform” rating on the stock. Seven analysts have rated the stock with a sell rating, six have given a hold rating and two have issued a buy rating to the stock. The company has a consensus rating of “Hold” and a consensus target price of $47.82.
Campbell Soup (NYSE:CPB) last issued its quarterly earnings data on Friday, February 16th. The company reported $1.00 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.81 by $0.19. Campbell Soup had a net margin of 13.41% and a return on equity of 54.10%. The business had revenue of $2.18 billion during the quarter, compared to the consensus estimate of $2.16 billion. During the same period in the prior year, the firm posted $0.91 EPS. The firm’s quarterly revenue was up .4% compared to the same quarter last year. equities analysts expect that Campbell Soup will post 3.12 EPS for the current year.
In related news, insider Luca Mignini bought 4,400 shares of the company’s stock in a transaction on Wednesday, February 21st. The shares were purchased at an average cost of $45.53 per share, for a total transaction of $200,332.00. Following the completion of the purchase, the insider now directly owns 87,814 shares in the company, valued at $3,998,171.42. The acquisition was disclosed in a filing with the SEC, which is available at the SEC website. 37.20% of the stock is owned by insiders.
Hedge funds have recently made changes to their positions in the stock. Whittier Trust Co. lifted its stake in shares of Campbell Soup by 180.0% during the 1st quarter. Whittier Trust Co. now owns 2,800 shares of the company’s stock valued at $121,000 after buying an additional 1,800 shares in the last quarter. Cordasco Financial Network purchased a new stake in shares of Campbell Soup during the 4th quarter valued at approximately $144,000. Whittier Trust Co. of Nevada Inc. lifted its stake in shares of Campbell Soup by 199.8% during the 4th quarter. Whittier Trust Co. of Nevada Inc. now owns 2,998 shares of the company’s stock valued at $144,000 after buying an additional 1,998 shares in the last quarter. First Personal Financial Services lifted its stake in shares of Campbell Soup by 44.0% during the 4th quarter. First Personal Financial Services now owns 3,856 shares of the company’s stock valued at $186,000 after buying an additional 1,179 shares in the last quarter. Finally, Confluence Wealth Management LLC purchased a new stake in shares of Campbell Soup during the 4th quarter valued at approximately $207,000. Institutional investors own 50.18% of the company’s stock.
About Campbell Soup
Campbell Soup Company, together with its subsidiaries, manufactures and markets branded food and beverage products. It operates through three segments: Americas Simple Meals and Beverages, Global Biscuits and Snacks, and Campbell Fresh. The Americas Simple Meals and Beverages segment engages in the retail and food service of Campbell's condensed and ready-to-serve soups; Swanson broth and stocks; Prego pasta sauces; Pace Mexican sauces; Campbell's gravies, pastas, beans, and dinner sauces; Swanson canned poultry products; Plum food and snack products; V8 juices and beverages; and Campbell's tomato juices in the United States, Canada, and Latin America.
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