Zacks Investment Research Lowers TreeHouse Foods Inc. (THS) to Sell
According to Zacks, “Estimates have been largely unchanged since Treehouse reported second quarter 2016 earnings release. While the company posted in-line earnings, net sales missed the Zacks Consensus Estimate by 2.5%. It is encouraging that the company is in the process of cutting costs and improving efficiency. It is closing and consolidating facilities, which will help maintain margins. The buyout of the private brands operations of ConAgra Foods and favorable volume/mix, primarily in the North American Retail Grocery segment will boost sales. However, lower margin structure of the acquired business of private brands will hurt gross margins and would hurt profits. Further, the company anticipates the overall food industry to face weakness and expects full year revenues for the industry to remain flat. Foreign exchange headwinds will also continue to challenge margins.”
A number of other research analysts have also weighed in on THS. BMO Capital Markets restated a market perform rating and issued a $98.00 target price on shares of TreeHouse Foods in a report on Friday, August 5th. JPMorgan Chase & Co. set a $119.00 target price on TreeHouse Foods and gave the company a buy rating in a report on Friday, August 5th. Jefferies Group restated a buy rating on shares of TreeHouse Foods in a report on Monday, August 1st. Finally, Susquehanna restated a buy rating on shares of TreeHouse Foods in a report on Sunday, July 17th. One equities research analyst has rated the stock with a sell rating, two have given a hold rating and six have assigned a buy rating to the company’s stock. TreeHouse Foods presently has an average rating of Buy and an average price target of $107.71.
Shares of TreeHouse Foods (NYSE:THS) opened at 87.41 on Thursday. The company has a 50-day moving average price of $89.98 and a 200 day moving average price of $93.66. The company has a market capitalization of $4.96 billion, a P/E ratio of 55.68 and a beta of 0.40. TreeHouse Foods has a 1-year low of $66.30 and a 1-year high of $104.53.
TreeHouse Foods (NYSE:THS) last announced its quarterly earnings results on Thursday, August 4th. The company reported $0.54 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.54. The business had revenue of $1.50 billion for the quarter, compared to analyst estimates of $1.58 billion. TreeHouse Foods had a return on equity of 6.18% and a net margin of 1.74%. The company’s quarterly revenue was up 103.0% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.66 earnings per share. Equities research analysts anticipate that TreeHouse Foods will post $3.07 EPS for the current year.
In related news, VP Thomas Emmet Oneill III sold 6,000 shares of the stock in a transaction that occurred on Friday, August 19th. The stock was sold at an average price of $97.00, for a total transaction of $582,000.00. Following the completion of the sale, the vice president now directly owns 145,138 shares of the company’s stock, valued at $14,078,386. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 3.40% of the company’s stock.
Hedge funds have recently modified their holdings of the stock. FMR LLC increased its stake in shares of TreeHouse Foods by 5.5% in the second quarter. FMR LLC now owns 4,451,066 shares of the company’s stock worth $456,902,000 after buying an additional 232,226 shares during the last quarter. Vanguard Group Inc. increased its stake in shares of TreeHouse Foods by 2.4% in the second quarter. Vanguard Group Inc. now owns 4,088,281 shares of the company’s stock worth $419,661,000 after buying an additional 97,713 shares during the last quarter. Goldman Sachs Group Inc. increased its stake in shares of TreeHouse Foods by 21.2% in the first quarter. Goldman Sachs Group Inc. now owns 3,264,403 shares of the company’s stock worth $283,187,000 after buying an additional 571,659 shares during the last quarter. BlackRock Fund Advisors increased its stake in shares of TreeHouse Foods by 30.0% in the first quarter. BlackRock Fund Advisors now owns 2,723,677 shares of the company’s stock worth $236,279,000 after buying an additional 629,326 shares during the last quarter. Finally, JPMorgan Chase & Co. increased its stake in shares of TreeHouse Foods by 68.9% in the first quarter. JPMorgan Chase & Co. now owns 2,398,639 shares of the company’s stock worth $208,082,000 after buying an additional 978,431 shares during the last quarter.
About TreeHouse Foods
TreeHouse Foods, Inc is a consumer packaged food and beverage manufacturing company. The Company’s segments include North American Retail Grocery, Food Away From Home, and Industrial and Export. It manufactures a range of shelf stable, refrigerated and fresh products. Its product categories include beverages, salad dressings, snacks, beverage enhancers, pickles, Mexican and other sauces, soup and infant feeding, cereals, dry dinners, aseptic products, jams and other products.
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