Campbell’s (NASDAQ:CPB) Shares Gap Down – What’s Next?

The Campbell’s Company (NASDAQ:CPB)’s share price gapped down prior to trading on Thursday . The stock had previously closed at $23.78, but opened at $22.32. Campbell’s shares last traded at $21.5880, with a volume of 8,700,171 shares trading hands.

Key Stories Impacting Campbell’s

Here are the key news stories impacting Campbell’s this week:

• Positive Sentiment: Management said it is taking cost-cutting and balance-sheet measures to address unacceptable performance. Reducing the dividend to $0.25 per share from $0.39 should preserve cash for debt reduction, although the move is unfavorable for income-focused investors. Campbell’s Slashes Dividend and Looks to Cut Costs
• Positive Sentiment: Director Dorrance Bennett Jr. purchased 300 CPB shares during the past six months, providing a modest insider-confidence signal. However, the purchases were relatively small compared with the company’s market value.
• Neutral Sentiment: Campbell’s completed its acquisition of La Regina during the quarter, expanding its food portfolio, but the near-term financial contribution does not offset the broader earnings pressure. Campbell’s Reports Fourth Quarter Fiscal 2026 Results
• Neutral Sentiment: Institutional trading was mixed: 381 investors added CPB shares while 334 reduced positions in the latest quarter. Analyst sentiment remains cautious, with a recent Bank of America Underperform rating and reported price targets clustering around $20 or below.
• Negative Sentiment: Fourth-quarter sales fell about 8% to $2.1 billion, while adjusted EPS dropped 37% year over year to $0.39 from $0.62. Results were hurt by weaker volumes and product mix, inflation, tariff-related supply-chain costs, and an impairment involving the Cape Cod and Kettle Brand trademarks. Campbell’s Lags Q4 Earnings and Revenue Estimates
• Negative Sentiment: Campbell’s forecast fiscal 2027 sales to decline 2% to 4% and adjusted EPS to range from $1.65 to $1.80, signaling another difficult year amid weak consumer spending and continued softness in snacks demand. Campbell’s Forecasts Annual Sales and Profit Below Estimates
• Negative Sentiment: The combination of lower profitability, a quarterly loss on a reported basis, a reduced dividend, and the need for debt reduction suggests investors expect persistent pressure on cash flow and shareholder returns.

Wall Street Analyst Weigh In

CPB has been the topic of a number of research analyst reports. Sanford C. Bernstein reaffirmed an “underperform” rating and set a $19.00 target price (down from $21.00) on shares of Campbell’s in a report on Tuesday, June 9th. Bank of America reduced their price objective on shares of Campbell’s from $20.00 to $18.00 and set an “underperform” rating for the company in a research report on Tuesday, June 9th. Stifel Nicolaus lifted their price objective on shares of Campbell’s from $20.00 to $22.00 and gave the stock a “hold” rating in a research note on Wednesday, July 22nd. Stephens set a $20.00 target price on shares of Campbell’s in a report on Friday, August 28th. Finally, Morgan Stanley cut their target price on shares of Campbell’s from $23.00 to $21.00 and set an “equal weight” rating for the company in a research note on Friday, June 5th. Thirteen equities research analysts have rated the stock with a Hold rating and six have issued a Sell rating to the stock. According to data from MarketBeat.com, Campbell’s presently has a consensus rating of “Reduce” and a consensus price target of $20.44.

Campbell’s Stock Performance

The firm’s fifty day simple moving average is $22.76 and its 200 day simple moving average is $22.41. The company has a market capitalization of $6.34 billion, a price-to-earnings ratio of 10.52, a PEG ratio of 2.41 and a beta of 0.03. The company has a debt-to-equity ratio of 1.53, a current ratio of 0.87 and a quick ratio of 0.38.

Campbell’s (NASDAQ:CPB) last issued its quarterly earnings results on Thursday, September 3rd. The company reported $0.39 EPS for the quarter, meeting the consensus estimate of $0.39. The business had revenue of $2.14 billion during the quarter. Campbell’s had a net margin of 6.12% and a return on equity of 18.04%. The firm’s revenue was down 7.9% compared to the same quarter last year. During the same quarter last year, the company posted $0.62 EPS. On average, sell-side analysts forecast that The Campbell’s Company will post 2.18 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the business. State Street Corp grew its holdings in Campbell’s by 1.3% in the 2nd quarter. State Street Corp now owns 11,960,359 shares of the company’s stock valued at $366,585,000 after buying an additional 149,679 shares during the last quarter. Dimensional Fund Advisors LP boosted its position in shares of Campbell’s by 23.3% in the first quarter. Dimensional Fund Advisors LP now owns 10,239,231 shares of the company’s stock valued at $228,026,000 after acquiring an additional 1,933,814 shares during the period. Invesco Ltd. boosted its position in shares of Campbell’s by 21.6% in the fourth quarter. Invesco Ltd. now owns 9,719,409 shares of the company’s stock valued at $270,880,000 after acquiring an additional 1,723,676 shares during the period. California State Teachers Retirement System grew its stake in shares of Campbell’s by 2,093.8% in the second quarter. California State Teachers Retirement System now owns 4,981,665 shares of the company’s stock worth $110,942,000 after acquiring an additional 4,754,582 shares during the last quarter. Finally, Two Sigma Investments LP increased its position in Campbell’s by 534.8% during the third quarter. Two Sigma Investments LP now owns 4,937,170 shares of the company’s stock worth $155,916,000 after acquiring an additional 4,159,398 shares during the period. Institutional investors own 52.35% of the company’s stock.

About Campbell’s

Campbell’s (NASDAQ: CPB) is a leading manufacturer of shelf-stable foods and beverages, best known for its iconic soups and broths. Headquartered in Camden, New Jersey, the company offers a diverse portfolio of products designed to meet consumer demand for convenient, affordable meals and snacks. Since its founding in 1869, Campbell’s has grown through a combination of organic innovation and strategic acquisitions to expand its presence in the food industry.

The company’s brand portfolio includes Campbell’s Condensed Soups, V8 juices, Prego pasta sauces, Swanson broths and stocks, Pace salsas and dips, and Pepperidge Farm baked snacks.