Zacks Investment Research downgraded shares of Dean Foods Company (NYSE:DF) from a hold rating to a sell rating in a research note released on Tuesday morning.

According to Zacks, “Dean Foods has lagged the sector year to date, due to its unimpressive earnings history. The company has been facing a tough retail scenario on account of fast-evolving consumer trends. Moreover, Dean Foods’ volumes have been pressurized owing to stiff competition and macro factors. These factors, along with high raw milk costs led the company to post its third straight negative earnings surprise in the last reported quarter. Unfortunately, management anticipates these obstacles to linger throughout 2017, as is reflected by its lowered earnings view. In fact, raw milk costs are likely to rise both sequentially and year over year in the third quarter. Nonetheless, Dean Foods remains on track to speed up its commercial and cost productivity efforts, to enhance volumes and mix. This is evident from the company’s plans of expanding cost productivity program, which should aid in achieving additional savings of $40–$50 million annually.”

A number of other brokerages also recently commented on DF. Wells Fargo & Company downgraded shares of Dean Foods from an outperform rating to a market perform rating and reduced their price objective for the company from $25.00 to $12.00 in a research report on Wednesday, August 9th. Sanford C. Bernstein downgraded shares of Dean Foods from a market perform rating to an underperform rating and reduced their price objective for the company from $18.00 to $13.00 in a research report on Thursday, July 27th. Jefferies Group LLC reduced their price objective on shares of Dean Foods from $20.00 to $16.00 and set a buy rating for the company in a research report on Thursday, August 10th. Stephens downgraded shares of Dean Foods from an overweight rating to an equal weight rating and set a $22.00 price objective for the company. in a research report on Tuesday, August 8th. Finally, Vertical Group downgraded shares of Dean Foods from a buy rating to a hold rating in a research report on Thursday, August 10th. Five investment analysts have rated the stock with a sell rating, eight have issued a hold rating and two have given a buy rating to the company. The company presently has an average rating of Hold and a consensus price target of $14.67.

Dean Foods (DF) opened at $9.31 on Tuesday. The company has a market cap of $859.15 million, a price-to-earnings ratio of 8.67, a P/E/G ratio of 1.66 and a beta of 0.53. The company has a debt-to-equity ratio of 1.25, a quick ratio of 0.85 and a current ratio of 1.21.

Dean Foods (NYSE:DF) last announced its quarterly earnings data on Tuesday, August 8th. The company reported $0.21 EPS for the quarter, missing the Zacks’ consensus estimate of $0.30 by ($0.09). The firm had revenue of $1.93 billion during the quarter, compared to analyst estimates of $1.94 billion. Dean Foods had a net margin of 0.70% and a return on equity of 16.63%. Dean Foods’s revenue for the quarter was up 4.2% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.38 EPS. equities analysts predict that Dean Foods will post 0.81 earnings per share for the current fiscal year.

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Several hedge funds have recently bought and sold shares of DF. Flinton Capital Management LLC lifted its position in shares of Dean Foods by 60.6% during the 2nd quarter. Flinton Capital Management LLC now owns 6,448 shares of the company’s stock valued at $110,000 after acquiring an additional 2,432 shares during the period. PNC Financial Services Group Inc. lifted its position in shares of Dean Foods by 13.8% during the 1st quarter. PNC Financial Services Group Inc. now owns 5,670 shares of the company’s stock valued at $111,000 after acquiring an additional 686 shares during the period. Riverhead Capital Management LLC lifted its position in shares of Dean Foods by 62.0% during the 2nd quarter. Riverhead Capital Management LLC now owns 7,128 shares of the company’s stock valued at $121,000 after acquiring an additional 2,728 shares during the period. LS Investment Advisors LLC lifted its position in shares of Dean Foods by 17.5% during the 2nd quarter. LS Investment Advisors LLC now owns 7,275 shares of the company’s stock valued at $124,000 after acquiring an additional 1,081 shares during the period. Finally, Advisor Group Inc. lifted its position in shares of Dean Foods by 40.7% during the 2nd quarter. Advisor Group Inc. now owns 7,857 shares of the company’s stock valued at $133,000 after acquiring an additional 2,271 shares during the period.

About Dean Foods

Dean Foods Company is a food and beverage company. The Company processes and distributes fluid milk, and other dairy and dairy case products in the United States. It is engaged in manufacturing, marketing, selling and distributing a range of branded and private label dairy and dairy case products. It offers branded and private label dairy case products, including fluid milk, ice cream, cultured dairy products, creamers, ice cream mix and other dairy products to retailers, distributors, foodservice outlets, educational institutions and governmental entities across the United States.

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