B&G Foods (BGS) Downgraded by Zacks Investment Research to Sell
B&G Foods (NYSE:BGS) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Wednesday.
According to Zacks, “B&G Foods which has seen its shares decline 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 recently weighed in on the company. ValuEngine cut B&G Foods from a “sell” rating to a “strong sell” rating in a report on Thursday, September 27th. Credit Suisse Group increased their price target on B&G Foods from $21.00 to $23.00 and gave the stock an “underperform” rating in a report on Wednesday, October 31st. Finally, Citigroup lowered their target price on B&G Foods from $34.00 to $33.00 and set a “buy” rating for the company in a report on Wednesday, October 31st. Three investment analysts have rated the stock with a sell rating, two have given a hold rating and six have assigned a buy rating to the stock. The stock has a consensus rating of “Hold” and an average target price of $34.22.
B&G Foods (NYSE:BGS) last released its quarterly earnings results on Tuesday, October 30th. The company reported $0.57 earnings per share for the quarter, topping analysts’ consensus estimates of $0.56 by $0.01. The business had revenue of $422.60 million during the quarter, compared to analysts’ expectations of $429.53 million. B&G Foods had a return on equity of 16.01% and a net margin of 11.09%. The company’s revenue was up 4.1% compared to the same quarter last year. During the same period in the prior year, the business posted $0.55 EPS. As a group, equities analysts expect that B&G Foods will post 2.02 earnings per share for the current year.
In related news, Director Cheryl M. Palmer sold 12,000 shares of the firm’s stock in a transaction dated Tuesday, November 13th. The stock was sold at an average price of $29.52, for a total transaction of $354,240.00. Following the completion of the transaction, the director now directly owns 12,839 shares in the company, valued at approximately $379,007.28. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 2.90% of the company’s stock.
Institutional investors have recently made changes to their positions in the stock. Ridgewood Investments LLC purchased a new position in B&G Foods during the 2nd quarter valued at about $226,000. Russell Investments Group Ltd. boosted its holdings in B&G Foods by 1.7% during the 2nd quarter. Russell Investments Group Ltd. now owns 257,358 shares of the company’s stock valued at $7,707,000 after acquiring an additional 4,242 shares during the period. Advisors Asset Management Inc. boosted its holdings in B&G Foods by 3.1% during the 2nd quarter. Advisors Asset Management Inc. now owns 778,434 shares of the company’s stock valued at $23,275,000 after acquiring an additional 23,557 shares during the period. Laurion Capital Management LP purchased a new position in shares of B&G Foods in the 2nd quarter valued at about $991,000. Finally, Factorial Partners LLC boosted its stake in shares of B&G Foods by 54.0% in the 3rd quarter. Factorial Partners LLC now owns 54,200 shares of the company’s stock valued at $1,488,000 after buying an additional 19,000 shares during the period. Institutional investors own 96.75% of the company’s stock.
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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