DA Davidson Has Lowered Expectations for Mama’s Creations (NASDAQ:MAMA) Stock Price

Mama’s Creations (NASDAQ:MAMA) had its price target cut by analysts at DA Davidson from $25.00 to $22.00 in a research note issued to investors on Friday, Benzinga reports. The brokerage presently has a “buy” rating on the stock. DA Davidson’s price target points to a potential upside of 37.16% from the stock’s current price.

A number of other equities research analysts also recently issued reports on MAMA. William Blair started coverage on shares of Mama’s Creations in a research report on Friday, July 24th. They issued an “outperform” rating for the company. Zacks Research lowered Mama’s Creations from a “strong-buy” rating to a “hold” rating in a report on Tuesday, July 28th. Weiss Ratings downgraded Mama’s Creations from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, August 19th. Benchmark started coverage on Mama’s Creations in a research note on Tuesday, July 21st. They set a “buy” rating and a $25.00 price target for the company. Finally, Wall Street Zen lowered Mama’s Creations from a “buy” rating to a “hold” rating in a report on Sunday, July 12th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $19.33.

Mama’s Creations Trading Up 0.5%

Shares of Mama’s Creations stock traded up $0.08 during trading on Friday, hitting $16.04. The stock had a trading volume of 273,438 shares, compared to its average volume of 502,650. Mama’s Creations has a 1 year low of $8.67 and a 1 year high of $21.00. The stock has a 50 day simple moving average of $17.62 and a 200 day simple moving average of $16.12. The company has a quick ratio of 1.90, a current ratio of 2.32 and a debt-to-equity ratio of 0.09. The company has a market capitalization of $656.68 million, a PE ratio of 114.57 and a beta of 0.56.

Mama’s Creations (NASDAQ:MAMA) last announced its earnings results on Thursday, September 3rd. The company reported $0.06 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.05 by $0.01. Mama’s Creations had a net margin of 3.21% and a return on equity of 14.69%. The company had revenue of $54.58 million for the quarter, compared to the consensus estimate of $52.85 million. On average, research analysts expect that Mama’s Creations will post 0.24 EPS for the current fiscal year.

Hedge Funds Weigh In On Mama’s Creations

Institutional investors and hedge funds have recently bought and sold shares of the stock. Persistent Asset Partners Ltd acquired a new position in Mama’s Creations during the 2nd quarter valued at $59,000. Legal & General Group Plc bought a new position in shares of Mama’s Creations during the 2nd quarter worth about $65,000. Group One Trading LLC acquired a new position in shares of Mama’s Creations during the second quarter valued at about $81,000. Walleye Capital LLC acquired a new position in shares of Mama’s Creations during the second quarter valued at about $87,000. Finally, Prudential Financial Inc. bought a new stake in shares of Mama’s Creations in the second quarter valued at about $100,000. Institutional investors own 45.18% of the company’s stock.

More Mama’s Creations News

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

• Positive Sentiment: Strong quarterly growth: Revenue rose 55% year over year to $54.6 million, ahead of the $52.85 million consensus estimate. Diluted EPS increased to $0.06 from $0.03 and topped expectations of $0.05. Mama’s Creations Reports Second Quarter Fiscal 2027 Financial Results
• Positive Sentiment: Profitability improved: Net income more than doubled to $2.6 million, while adjusted EBITDA climbed 69% to $5.5 million. Operating expenses declined as a percentage of revenue, and adjusted EBITDA margin expanded to 10.1% from 9.3% a year earlier. Mama’s Creations Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Retail momentum continued: Mama’s added more than a dozen product placements, was selected for Costco’s national second-half multi-vendor mailer across all eight regions, and plans its first Kroger launch in more than 100 stores. Additional placements are planned with Albertsons, BJ’s, Sam’s Club, Ahold, Food Lion and other retailers.
• Positive Sentiment: Greater financial flexibility: Cash reached $138.6 million, supported by $11.9 million of operating cash flow and approximately $108.6 million in net proceeds from a July stock offering. Management said the strengthened balance sheet improves its ability to pursue accretive acquisitions and supports its longer-term path toward $1 billion in revenue and mid- to high-20% gross margins. Mama’s Creations Signals Sharper Line of Sight to $1 Billion Revenue
• Neutral Sentiment: Margin remains a watch point: Gross margin was 24.0%, below 24.9% a year ago, although it improved sequentially from 23.6% as recent product launches moved toward steady-state production.
• Negative Sentiment: Share dilution and valuation risk: The stock offering substantially increased cash but also expanded the share count. With MAMA trading at a high earnings multiple, investors may require continued rapid growth and successful acquisitions to justify the valuation.

About Mama’s Creations

Mama’s Creations, Inc engages in the marketing, manufacturing, and distribution of beef meatballs with sauce, turkey meatballs with sauce, beef meat loaf, sausage and peppers, chicken parmesan, and other similar meats and sauces. Its products include beef meatballs, turkey meatballs, stuffed meatballs, lasagna roll ups, retail ready meals, bulk deli, single-size pasta bowls, and packaged refrigerated products. Its brands include MamaMancini’s, Creative Salads, and The Olive Branch. The company was founded by Daniel Dougherty on July 22, 2009 and is headquartered in East Rutherford, NJ.