Zacks Investment Research downgraded shares of Hostess Brands (NASDAQ:TWNK) from a hold rating to a sell rating in a report issued on Saturday.

According to Zacks, “Hostess Brands, Inc. is involved in developing, manufacturing, marketing, selling and distributing sweet goods primarily in the United States. The company produces new and classic treats which includes Ding Dongs, Ho Hos, Donettes, Fruit Pies as well as Twinkies and CupCakes. Hostess Brands, Inc. is based in Kansas City, Missouri. “

Other research analysts have also issued reports about the company. BidaskClub lowered Hostess Brands from a hold rating to a sell rating in a research report on Friday, August 10th. Citigroup set a $12.00 target price on Hostess Brands and gave the stock a hold rating in a report on Monday, November 12th. Royal Bank of Canada lowered Hostess Brands from an outperform rating to a sector perform rating in a report on Wednesday, August 8th. UBS Group set a $12.00 target price on Hostess Brands and gave the stock a hold rating in a report on Thursday, November 8th. Finally, SunTrust Banks lowered Hostess Brands from a buy rating to a hold rating in a report on Wednesday, August 8th. One equities research analyst has rated the stock with a sell rating, six have issued a hold rating and four have issued a buy rating to the stock. Hostess Brands presently has a consensus rating of Hold and a consensus price target of $14.78.

NASDAQ:TWNK opened at $11.09 on Friday. Hostess Brands has a 12-month low of $9.86 and a 12-month high of $15.40. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.85 and a current ratio of 2.13. The firm has a market capitalization of $1.47 billion, a PE ratio of 17.60 and a beta of 0.28.

Hostess Brands (NASDAQ:TWNK) last posted its quarterly earnings results on Wednesday, November 7th. The company reported $0.10 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.12 by ($0.02). Hostess Brands had a return on equity of 3.76% and a net margin of 27.74%. The company had revenue of $211.00 million during the quarter, compared to the consensus estimate of $208.64 million. During the same quarter in the prior year, the business earned $0.14 earnings per share. The firm’s revenue for the quarter was up 9.7% on a year-over-year basis. Analysts forecast that Hostess Brands will post 0.53 EPS for the current fiscal year.

A number of hedge funds have recently bought and sold shares of TWNK. BlackRock Inc. lifted its holdings in Hostess Brands by 24.1% during the second quarter. BlackRock Inc. now owns 6,357,836 shares of the company’s stock worth $86,466,000 after acquiring an additional 1,232,929 shares in the last quarter. Wells Fargo & Company MN lifted its holdings in Hostess Brands by 57.1% during the third quarter. Wells Fargo & Company MN now owns 2,622,617 shares of the company’s stock worth $29,031,000 after acquiring an additional 953,279 shares in the last quarter. Dimensional Fund Advisors LP lifted its holdings in Hostess Brands by 18.4% during the third quarter. Dimensional Fund Advisors LP now owns 5,715,597 shares of the company’s stock worth $63,272,000 after acquiring an additional 886,636 shares in the last quarter. Massachusetts Financial Services Co. MA lifted its holdings in Hostess Brands by 49.7% during the third quarter. Massachusetts Financial Services Co. MA now owns 1,619,852 shares of the company’s stock worth $17,931,000 after acquiring an additional 537,691 shares in the last quarter. Finally, American Century Companies Inc. lifted its holdings in Hostess Brands by 134.8% during the second quarter. American Century Companies Inc. now owns 877,529 shares of the company’s stock worth $11,934,000 after acquiring an additional 503,813 shares in the last quarter. Hedge funds and other institutional investors own 83.14% of the company’s stock.

About Hostess Brands

Hostess Brands, Inc, a packaged food company, develops, manufactures, markets, sells, and distributes fresh sweet baked goods in the United States. It primarily offer coffee cakes, cinnamon rolls, honey buns, brownies, bread and buns, jumbo muffins, and eclairs under the Twinkies, CupCakes, Ding Dongs, Zingers, HoHos, Donettes, Dolly Madison, and Superior on Main brands.

Further Reading: Understanding Price to Earnings Ratio (PE)

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Analyst Recommendations for Hostess Brands (NASDAQ:TWNK)

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