B&G Foods (BGS) Downgraded by Zacks Investment Research to “Sell”
B&G Foods (NYSE:BGS) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Tuesday.
According to Zacks, “B&G Foods which has lagged the industry in the past three months, posted dismal third quarter 2018 results. During the quarter, both the top and bottom line missed estimates. Moreover, management lowered its 2018 view owing to divestiture of Pirate Brands to Hershey, as well as and repayment of long-term debt. The company remains concerned about the industry-wide freight cost headwinds. We note that Increased freight costs and higher interest expenses marred bottom line in the quarter. Unfortunately, freight costs are expected to remain high throughout the year, which is likely to keep margins under pressure. As a result, management narrowed its adjusted EBITDA view for 2018. However, B&G Foods remains poised on strategic acquisitions to boost growth. Further, the company is on track with its inventory reduction plans and also boasts a good history of returning value to its shareholders.”
Other research analysts also recently issued research reports about the company. ValuEngine raised B&G Foods from a “strong sell” rating to a “sell” rating in a report on Thursday, August 9th. Credit Suisse Group upped their price objective on B&G Foods from $21.00 to $23.00 and gave the stock an “underperform” rating in a report on Wednesday, October 31st. Citigroup cut their price target on B&G Foods from $34.00 to $33.00 and set a “buy” rating on the stock in a research note on Wednesday, October 31st. Finally, Royal Bank of Canada reissued a “buy” rating and issued a $39.00 price target on shares of B&G Foods in a research note on Friday, August 3rd. Three analysts have rated the stock with a sell rating, two have issued a hold rating and six have assigned a buy rating to the stock. The stock has an average rating of “Hold” and a consensus price target of $34.22.
B&G Foods (NYSE:BGS) last posted its quarterly earnings data on Tuesday, October 30th. The company reported $0.57 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.56 by $0.01. B&G Foods had a return on equity of 16.01% and a net margin of 11.09%. The firm had revenue of $422.60 million for the quarter, compared to the consensus estimate of $429.53 million. During the same quarter in the prior year, the business earned $0.55 EPS. The business’s revenue for the quarter was up 4.1% compared to the same quarter last year. On average, equities analysts predict that B&G Foods will post 2.02 EPS for the current fiscal year.
In other news, Director Cheryl M. Palmer sold 12,000 shares of the stock in a transaction on Tuesday, November 13th. The stock was sold at an average price of $29.52, for a total value of $354,240.00. Following the transaction, the director now owns 12,839 shares of the company’s stock, valued at approximately $379,007.28. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Corporate insiders own 2.90% of the company’s stock.
Several hedge funds have recently bought and sold shares of BGS. BlackRock Inc. lifted its stake in shares of B&G Foods by 15.6% in the 2nd quarter. BlackRock Inc. now owns 9,170,456 shares of the company’s stock valued at $274,198,000 after purchasing an additional 1,234,551 shares during the period. Glenmede Trust Co. NA lifted its stake in shares of B&G Foods by 146.6% in the 2nd quarter. Glenmede Trust Co. NA now owns 1,109,493 shares of the company’s stock valued at $33,174,000 after purchasing an additional 659,552 shares during the period. Mirae Asset Global Investments Co. Ltd. acquired a new stake in B&G Foods during the 3rd quarter worth $7,192,000. Davidson Kempner Capital Management LP acquired a new stake in B&G Foods during the 2nd quarter worth $7,475,000. Finally, Jennison Associates LLC raised its stake in B&G Foods by 60.0% during the 2nd quarter. Jennison Associates LLC now owns 665,042 shares of the company’s stock worth $19,885,000 after buying an additional 249,502 shares during the period. 99.65% of the stock is currently owned by institutional investors.
About B&G Foods
B&G Foods, Inc manufactures, sells, and distributes a portfolio of shelf-stable and frozen foods in the United States, Canada, and Puerto Rico. Its products include frozen and canned vegetables, hot cereals, fruit spreads, canned meats and beans, bagel chips, spices, seasonings, hot sauces, wine vinegars, maple syrups, molasses, salad dressings, pizza crusts, Mexican-style sauces, dry soups, taco shells and kits, salsas, pickles, peppers, tomato-based products, puffed corn and rice snacks, cookies and crackers, nut clusters, and other specialty products.
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