Campbell Soup (CPB) Upgraded to “Hold” by Zacks Investment Research

Campbell Soup (NYSE:CPB) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a note issued to investors on Monday.

According to Zacks, “Campbell Soup has lagged the industry in the past six months, which can be accountable to management’s dismal outlook that followed its third-quarter fiscal 2018 results. Soft margins continued being a hurdle, due to cost inflation, high supply-chain costs and promotional spending. Management was particularly disappointed with its C-Fresh unit’s performance, which also bore the brunt of weak margins. These headwinds are likely to persist, which led to a trimmed view. Nonetheless, the company’s focus on expanding the fast-growing snacking and organic foods category remains a key driver. To bolster its snacks portfolio, Campbell bought Snyder's-Lance during the third quarter, which is expected to deliver cost-savings and synergies of nearly $295 million. These factors along with Campbell’s cost-savings plan should help it overcome the hurdles and aid the stock. Estimates have been stable lately ahead of earnings.”

Other research analysts have also recently issued reports about the stock. Piper Jaffray Companies set a $35.00 price target on shares of Campbell Soup and gave the stock a “sell” rating in a report on Tuesday, August 14th. JPMorgan Chase & Co. cut shares of Campbell Soup from a “neutral” rating to an “underweight” rating and set a $48.00 price target on the stock. in a report on Friday, August 10th. ValuEngine cut shares of Campbell Soup from a “sell” rating to a “strong sell” rating in a report on Wednesday, May 2nd. UBS Group set a $30.00 price target on shares of Campbell Soup and gave the stock a “sell” rating in a report on Thursday. Finally, Gabelli restated a “buy” rating on shares of Campbell Soup in a report on Monday, July 16th. Ten investment analysts have rated the stock with a sell rating, six have given a hold rating and two have assigned a buy rating to the stock. Campbell Soup currently has an average rating of “Hold” and a consensus price target of $40.47.

Campbell Soup stock traded down $0.03 during midday trading on Monday, hitting $40.65. 117,010 shares of the stock were exchanged, compared to its average volume of 4,674,348. Campbell Soup has a 52-week low of $32.63 and a 52-week high of $52.71. The stock has a market cap of $12.23 billion, a PE ratio of 13.36, a price-to-earnings-growth ratio of 2.49 and a beta of 0.28. The company has a debt-to-equity ratio of 5.73, a quick ratio of 0.37 and a current ratio of 0.68.

In related news, Director Maria Teresa Hilado acquired 2,000 shares of the stock in a transaction on Wednesday, June 6th. The shares were acquired at an average price of $33.22 per share, with a total value of $66,440.00. Following the completion of the transaction, the director now owns 4,330 shares in the company, valued at approximately $143,842.60. The purchase was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 37.20% of the company’s stock.

Hedge funds have recently made changes to their positions in the business. Benjamin F. Edwards & Company Inc. raised its position in shares of Campbell Soup by 1,609.3% in the second quarter. Benjamin F. Edwards & Company Inc. now owns 2,564 shares of the company’s stock valued at $104,000 after purchasing an additional 2,414 shares during the period. Whittier Trust Co. raised its position in shares of Campbell Soup by 180.0% in the first quarter. Whittier Trust Co. now owns 2,800 shares of the company’s stock valued at $121,000 after purchasing an additional 1,800 shares during the period. IMA Wealth Inc. bought a new stake in shares of Campbell Soup in the second quarter valued at approximately $130,000. Tower Research Capital LLC TRC raised its position in shares of Campbell Soup by 766.8% in the second quarter. Tower Research Capital LLC TRC now owns 3,467 shares of the company’s stock valued at $140,000 after purchasing an additional 3,067 shares during the period. Finally, Jolley Asset Management LLC bought a new stake in shares of Campbell Soup in the second quarter valued at approximately $141,000. 54.98% of the stock is currently owned by institutional investors and hedge funds.

About Campbell Soup

Campbell Soup Co engages in manufacturing and marketing of convenience food products such as soup, simple meals, snacks, and healthy beverages. It operates through the following segments: Americas Simple Meals and Beverages; Global Biscuits and Snacks; and Campbell Fresh. The Americas Simple Meals and Beverages segment includes the retail and food service businesses in the U.S., Canada and Latin America.

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