SuperValu Inc. (SVU) Stock Rating Lowered by Zacks Investment Research
Zacks Investment Research cut shares of SuperValu Inc. (NYSE:SVU) from a buy rating to a hold rating in a research report sent to investors on Thursday.
According to Zacks, “SUPERVALU reported better-than-expected first quarter fiscal 2018 sales results, but earnings missed the same. Nevertheless, both earnings and revenues increased year-over-year during the quarter. We note that SUPERVALU shares have underperformed the industry for the last three months, probably due to sluggish retail business, tough competitive pressure and depleting footfalls at the supermarkets. However, we believe the company’s efforts to turnaround and improve its businesses is commendable. The company is trying to develop wholesale operations, primarily through adding new customers, retaining and developing business with existing customers and acquisitions. The acquisition of Unified Grocers is expected to boost Supervalu’s wholesale business and will also complement its customer base. In addition, the company is taking several measures to improve the performance of its retail business as well as increase operating efficiency.”
A number of other research firms also recently commented on SVU. Royal Bank Of Canada set a $6.00 price target on SuperValu and gave the company a buy rating in a research note on Sunday, July 16th. Guggenheim reaffirmed a neutral rating on shares of SuperValu in a research note on Monday, May 1st. Telsey Advisory Group decreased their target price on SuperValu from $5.50 to $4.50 and set a market perform rating on the stock in a research report on Tuesday, June 27th. Deutsche Bank AG reiterated a hold rating and issued a $4.00 target price (down previously from $5.00) on shares of SuperValu in a research report on Wednesday, July 26th. Finally, ValuEngine cut SuperValu from a buy rating to a hold rating in a research report on Friday, June 2nd. Six analysts have rated the stock with a hold rating and two have assigned a buy rating to the company’s stock. SuperValu has a consensus rating of Hold and an average target price of $4.70.
SuperValu (NYSE SVU) traded up 1.554% during midday trading on Thursday, hitting $3.595. 1,458,882 shares of the stock traded hands. The firm’s 50 day moving average is $3.36 and its 200-day moving average is $3.75. SuperValu has a 12-month low of $2.90 and a 12-month high of $5.74. The stock has a market capitalization of $959.87 million, a PE ratio of 1.554 and a beta of 2.03.
SuperValu (NYSE:SVU) last posted its quarterly earnings results on Tuesday, July 25th. The company reported $0.09 EPS for the quarter, missing the Zacks’ consensus estimate of $0.10 by $0.01. The company had revenue of $4 billion during the quarter, compared to analyst estimates of $3.91 billion. SuperValu had a net margin of 4.46% and a return on equity of 220.54%. The firm’s revenue for the quarter was up 6.3% compared to the same quarter last year. During the same period last year, the firm earned $0.19 EPS. On average, analysts anticipate that SuperValu will post $0.31 EPS for the current fiscal year.
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Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. BlackRock Inc. boosted its stake in SuperValu by 11,576.6% in the first quarter. BlackRock Inc. now owns 41,258,226 shares of the company’s stock valued at $159,258,000 after buying an additional 40,904,886 shares during the period. UBS Oconnor LLC boosted its stake in SuperValu by 323.4% in the first quarter. UBS Oconnor LLC now owns 9,222,644 shares of the company’s stock valued at $35,599,000 after buying an additional 7,044,616 shares during the period. State Street Corp boosted its stake in SuperValu by 7.7% in the first quarter. State Street Corp now owns 8,208,363 shares of the company’s stock valued at $31,686,000 after buying an additional 586,022 shares during the period. Dimensional Fund Advisors LP boosted its stake in SuperValu by 2.2% in the first quarter. Dimensional Fund Advisors LP now owns 5,396,791 shares of the company’s stock valued at $20,831,000 after buying an additional 118,740 shares during the period. Finally, Clearline Capital LP boosted its stake in SuperValu by 3.5% in the first quarter. Clearline Capital LP now owns 4,123,188 shares of the company’s stock valued at $15,915,000 after buying an additional 140,557 shares during the period. Hedge funds and other institutional investors own 80.53% of the company’s stock.
Supervalu Inc is a wholesale distributor to independent retail customers across the United States. The Company’s segments include Wholesale and Retail. The Company offers a range of advertised brand name and private-label products, including grocery (both perishable and nonperishable), general merchandise and home, health and beauty care, and pharmacy, which are sold through Company-operated and licensed Retail stores to shoppers and through its Wholesale segment to independent retail customers.
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