Campbell Soup Co. (NYSE:CPB) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report released on Monday.
According to Zacks, “After a ten quarter long trend of either meeting or beating estimates, Campbell Soup succumbed to an earnings miss in fourth-quarter fiscal 2016. Moreover, the company’s margins and organic sales were hurt by soft Campbell Fresh performance that stemmed from low carrot sales and the voluntary recall of some Bolthouse Farms products. This, along with currency woes and higher promotional costs, dented Campbell’s results. On the flip side, the company remains pleased with the solid profits earned in fiscal 2016, fuelled by strong performance of its Americas Simple Meals and Global Biscuits segments, and cost saving efforts. Further, the company remains on track to improve Campbell Fresh’s long-term performance, and augment overall sales in fiscal 2017. This confidence in future prospects also encouraged management to declare a dividend hike, which along with its other shareholder-friendly moves, should boost investors’ sentiment”
Other equities analysts have also recently issued research reports about the stock. Deutsche Bank AG lowered their price objective on shares of Campbell Soup from $63.00 to $61.00 and set a “hold” rating on the stock in a research note on Friday, August 26th. Wells Fargo & Co. set a $59.50 price objective on shares of Campbell Soup and gave the stock a “hold” rating in a research note on Sunday, September 4th. TheStreet cut shares of Campbell Soup from a “buy” rating to a “hold” rating in a research note on Thursday, September 1st. Argus cut shares of Campbell Soup from a “buy” rating to a “hold” rating and increased their price objective for the stock from $47.77 to $55.38 in a research note on Monday, September 19th. Finally, Credit Agricole SA lowered their price objective on shares of Campbell Soup from $64.00 to $59.00 and set a “market perform” rating on the stock in a research note on Monday, September 12th. Three investment analysts have rated the stock with a sell rating, twelve have given a hold rating and one has issued a buy rating to the stock. The stock has a consensus rating of “Hold” and an average target price of $59.83.
Campbell Soup (NYSE:CPB) opened at 54.61 on Monday. The firm has a 50-day moving average of $58.24 and a 200-day moving average of $61.98. The stock has a market cap of $16.81 billion, a PE ratio of 30.17 and a beta of 0.31. Campbell Soup has a 1-year low of $47.77 and a 1-year high of $67.89.
Campbell Soup (NYSE:CPB) last issued its quarterly earnings data on Thursday, September 1st. The company reported $0.46 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.50 by $0.04. Campbell Soup had a return on equity of 59.50% and a net margin of 7.07%. The business earned $1.69 billion during the quarter, compared to the consensus estimate of $1.69 billion. During the same quarter last year, the company earned $0.43 EPS. Campbell Soup’s revenue for the quarter was down .4% on a year-over-year basis. Analysts expect that Campbell Soup will post $3.04 EPS for the current fiscal year.
The business also recently disclosed a quarterly dividend, which will be paid on Monday, October 31st. Shareholders of record on Wednesday, October 12th will be issued a dividend of $0.35 per share. This is a positive change from Campbell Soup’s previous quarterly dividend of $0.31. This represents a $1.40 dividend on an annualized basis and a yield of 2.56%. The ex-dividend date is Friday, October 7th. Campbell Soup’s dividend payout ratio (DPR) is 69.44%.
In related news, insider Carlos Barroso sold 1,600 shares of the firm’s stock in a transaction on Tuesday, September 6th. The shares were sold at an average price of $57.68, for a total value of $92,288.00. Following the completion of the transaction, the insider now directly owns 46,888 shares of the company’s stock, valued at $2,704,499.84. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, insider Jeff Dunn sold 8,459 shares of the firm’s stock in a transaction on Thursday, September 8th. The shares were sold at an average price of $56.24, for a total transaction of $475,734.16. Following the completion of the transaction, the insider now directly owns 112,775 shares of the company’s stock, valued at $6,342,466. The disclosure for this sale can be found here. Company insiders own 37.70% of the company’s stock.
Several hedge funds and other institutional investors have recently bought and sold shares of CPB. Van ECK Associates Corp raised its position in Campbell Soup by 38.6% in the second quarter. Van ECK Associates Corp now owns 1,740 shares of the company’s stock worth $116,000 after buying an additional 485 shares during the period. Checchi Capital Advisers LLC raised its position in Campbell Soup by 9.8% in the second quarter. Checchi Capital Advisers LLC now owns 1,798 shares of the company’s stock worth $120,000 after buying an additional 161 shares during the period. Mizuho Asset Management Co. Ltd. raised its position in Campbell Soup by 69.7% in the second quarter. Mizuho Asset Management Co. Ltd. now owns 2,388 shares of the company’s stock worth $159,000 after buying an additional 981 shares during the period. OLD Mutual Customised Solutions Proprietary Ltd. raised its position in Campbell Soup by 38.1% in the second quarter. OLD Mutual Customised Solutions Proprietary Ltd. now owns 2,900 shares of the company’s stock worth $193,000 after buying an additional 800 shares during the period. Finally, Mercer Capital Advisers Inc. raised its position in Campbell Soup by 1.8% in the second quarter. Mercer Capital Advisers Inc. now owns 2,958 shares of the company’s stock worth $197,000 after buying an additional 53 shares during the period. 43.99% of the stock is owned by hedge funds and other institutional investors.
About Campbell Soup
Campbell Soup Company manufactures and markets food products. The Company’s segments include U.S. Simple Meals; Global Baking and Snacking; International Simple Meals and Beverages; U.S. Beverages, and Bolthouse and Foodservice. Its U.S. Simple Meals segment includes various products, such as Campbell’s condensed and ready-to-serve soups; Prego pasta sauces, and Pace Mexican sauces.
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