JPMorgan Chase & Co. Cuts Albertsons Companies (NYSE:ACI) Price Target to $23.00

Albertsons Companies (NYSE:ACI) had its price objective cut by JPMorgan Chase & Co. from $24.00 to $23.00 in a report released on Thursday,Benzinga reports. They currently have an overweight rating on the stock.

Several other research firms have also issued reports on ACI. Weiss Ratings restated a “hold (c-)” rating on shares of Albertsons Companies in a report on Thursday, October 30th. Barclays lowered their target price on shares of Albertsons Companies from $19.00 to $17.00 and set an “underweight” rating for the company in a research note on Thursday. Royal Bank Of Canada reaffirmed an “outperform” rating on shares of Albertsons Companies in a research report on Monday, December 29th. Telsey Advisory Group lowered their price objective on Albertsons Companies from $24.00 to $22.00 and set an “outperform” rating for the company in a research report on Thursday. Finally, Wells Fargo & Company dropped their price objective on Albertsons Companies from $23.00 to $21.00 and set an “overweight” rating on the stock in a research note on Thursday. Eleven investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Albertsons Companies presently has a consensus rating of “Moderate Buy” and an average target price of $22.85.

Albertsons Companies Stock Performance

NYSE:ACI opened at $16.67 on Thursday. The stock’s 50-day moving average is $17.51 and its 200-day moving average is $18.72. Albertsons Companies has a 1-year low of $15.80 and a 1-year high of $23.20. The company has a current ratio of 0.91, a quick ratio of 0.20 and a debt-to-equity ratio of 3.36. The stock has a market cap of $8.57 billion, a P/E ratio of 10.76, a price-to-earnings-growth ratio of 2.70 and a beta of 0.48.

Albertsons Companies (NYSE:ACI) last announced its quarterly earnings results on Wednesday, January 7th. The company reported $0.72 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.67 by $0.05. The firm had revenue of $19.12 billion during the quarter, compared to analysts’ expectations of $19.18 billion. Albertsons Companies had a net margin of 1.06% and a return on equity of 38.00%. The company’s revenue was up 1.9% on a year-over-year basis. During the same period in the prior year, the company posted $0.71 EPS. Albertsons Companies has set its FY 2025 guidance at 2.080-2.16 EPS. Equities research analysts anticipate that Albertsons Companies will post 2.14 earnings per share for the current year.

Albertsons Companies Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, February 6th. Shareholders of record on Friday, January 23rd will be paid a $0.15 dividend. This represents a $0.60 dividend on an annualized basis and a dividend yield of 3.6%. The ex-dividend date of this dividend is Friday, January 23rd. Albertsons Companies’s dividend payout ratio (DPR) is 38.71%.

Insider Activity

In related news, EVP Michael T. Theilmann sold 100,000 shares of the company’s stock in a transaction dated Thursday, October 16th. The shares were sold at an average price of $19.35, for a total value of $1,935,000.00. Following the sale, the executive vice president owned 338,429 shares in the company, valued at $6,548,601.15. This represents a 22.81% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Anuj Dhanda sold 230,000 shares of the firm’s stock in a transaction dated Thursday, October 16th. The shares were sold at an average price of $19.25, for a total transaction of $4,427,500.00. Following the completion of the transaction, the insider directly owned 300,577 shares in the company, valued at approximately $5,786,107.25. The trade was a 43.35% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 1.35% of the company’s stock.

Institutional Investors Weigh In On Albertsons Companies

A number of institutional investors and hedge funds have recently bought and sold shares of ACI. West Oak Capital LLC purchased a new stake in Albertsons Companies during the second quarter worth about $30,000. Harbor Capital Advisors Inc. raised its holdings in shares of Albertsons Companies by 130.4% in the 3rd quarter. Harbor Capital Advisors Inc. now owns 1,461 shares of the company’s stock worth $26,000 after purchasing an additional 827 shares during the period. MassMutual Private Wealth & Trust FSB lifted its stake in Albertsons Companies by 185.1% in the fourth quarter. MassMutual Private Wealth & Trust FSB now owns 1,628 shares of the company’s stock valued at $28,000 after purchasing an additional 1,057 shares during the last quarter. Allworth Financial LP grew its holdings in Albertsons Companies by 98.4% during the second quarter. Allworth Financial LP now owns 1,702 shares of the company’s stock valued at $37,000 after purchasing an additional 844 shares during the period. Finally, Sound Income Strategies LLC bought a new position in Albertsons Companies during the second quarter valued at $43,000. 71.35% of the stock is owned by hedge funds and other institutional investors.

Albertsons Companies News Summary

Here are the key news stories impacting Albertsons Companies this week:

• Positive Sentiment: Q3 earnings beat — Albertsons reported $0.72 EPS vs. $0.67 expected, which supports the case that operating performance is holding up. Earnings Call Transcript
• Positive Sentiment: Dividend & yield — Board declared a $0.15 quarterly dividend (ex‑div Jan 23), yielding roughly 3.5–3.6%, which supports income‑oriented investors and underpins the value case.
• Positive Sentiment: Analysts keep bullish ratings despite cuts — Multiple firms cut targets (JPMorgan, UBS, BMO, Telsey, Wells Fargo) but maintained buy/overweight/outperform stances, implying sizable upside from current levels. Analyst Notes
• Positive Sentiment: Value thesis & retail‑media optionality — MarketBeat and other analysts highlight deep valuation (single‑digit P/E vs. peers), institutional accumulation and growth potential from the company’s retail media network as catalysts for a multi‑quarter rebound. MarketBeat Article
• Neutral Sentiment: New coverage: Deutsche Bank initiated coverage with a “hold” — adds another voice but not a clear directional catalyst.
• Neutral Sentiment: Technical setup — Several pieces note ACI is oversold and could be ripe for a trend reversal; that reduces downside risk but timing is uncertain. Zacks Technical Note
• Negative Sentiment: Tepid / narrowed guidance — Management narrowed FY guidance and warned FY sales/profit will be hurt by lower Medicare drug pricing and a SNAP reimbursement impact; that’s the main driver of the recent negative re‑rating. Guidance Article
• Negative Sentiment: Margin pressure & pricing investments weighed on the stock — Even with an EPS beat, investors reacted to margin compression from pricing investments and lower pharmacy mix, driving a pullback after results. Zacks Earnings Reaction
• Negative Sentiment: Some bearish analyst moves — Barclays cut its target to $17 and moved to underweight, adding a lower‑end view that could pressure sentiment if others follow. Barclays Note

Albertsons Companies Company Profile

Albertsons Companies, Inc (NYSE: ACI) is one of the largest food and drug retailers in the United States, operating a diversified portfolio of grocery store banners. Founded in 1939 by Joe Albertson in Boise, Idaho, the company has grown through both organic expansion and strategic acquisitions. Its core business activities encompass the sale of fresh produce, meat, bakery items, deli offerings, pharmacy services, and general merchandise. The company’s retail operations are complemented by an in-house private-label program, featuring brands such as O Organics, Open Nature, and Lucerne, which cater to a range of customer preferences and price points.

Throughout its history, Albertsons Companies has pursued growth via mergers and partnerships.