DA Davidson Lowers Mama’s Creations (NASDAQ:MAMA) Price Target to $22.00

Mama’s Creations (NASDAQ:MAMA) had its price target dropped by stock analysts at DA Davidson from $25.00 to $22.00 in a research note issued on Friday, Benzinga reports. The brokerage currently has a “buy” rating on the stock. DA Davidson’s target price would suggest a potential upside of 37.16% from the stock’s current price.

Several other analysts have also issued reports on the company. Weiss Ratings lowered Mama’s Creations from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, August 19th. Wall Street Zen cut Mama’s Creations from a “buy” rating to a “hold” rating in a research note on Sunday, July 12th. Lake Street Capital reissued a “buy” rating on shares of Mama’s Creations in a research report on Friday. Zacks Research downgraded Mama’s Creations from a “strong-buy” rating to a “hold” rating in a report on Tuesday, July 28th. Finally, Benchmark assumed coverage on shares of Mama’s Creations in a research report on Tuesday, July 21st. They issued a “buy” rating and a $25.00 target price on the stock. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and two have given a Hold rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $19.33.

Mama’s Creations Price Performance

NASDAQ:MAMA traded up $0.08 during midday trading on Friday, hitting $16.04. The company had a trading volume of 273,438 shares, compared to its average volume of 502,650. The company has a market capitalization of $656.68 million, a PE ratio of 112.96 and a beta of 0.56. The company has a quick ratio of 1.90, a current ratio of 2.32 and a debt-to-equity ratio of 0.09. Mama’s Creations has a 52-week low of $8.67 and a 52-week high of $21.00. The stock’s fifty day moving average price is $17.62 and its 200-day moving average price is $16.12.

Mama’s Creations (NASDAQ:MAMA) last released its quarterly earnings results on Thursday, September 3rd. The company reported $0.06 earnings per share for the quarter, beating analysts’ consensus estimates of $0.05 by $0.01. Mama’s Creations had a return on equity of 14.69% and a net margin of 3.21%.The business had revenue of $54.58 million for the quarter, compared to the consensus estimate of $52.85 million. As a group, research analysts expect that Mama’s Creations will post 0.24 earnings per share for the current year.

Hedge Funds Weigh In On Mama’s Creations

A number of hedge funds have recently bought and sold shares of the business. Persistent Asset Partners Ltd purchased a new stake in shares of Mama’s Creations during the 2nd quarter valued at about $59,000. Legal & General Group Plc purchased a new position in shares of Mama’s Creations during the second quarter valued at approximately $65,000. Group One Trading LLC purchased a new position in shares of Mama’s Creations during the second quarter valued at approximately $81,000. Walleye Capital LLC bought a new position in Mama’s Creations during the second quarter valued at approximately $87,000. Finally, Prudential Financial Inc. bought a new position in Mama’s Creations during the second quarter valued at approximately $100,000. Hedge funds and other institutional investors own 45.18% of the company’s stock.

Key Headlines Impacting Mama’s Creations

Here are the key news stories impacting Mama’s Creations this week:

• Positive Sentiment: Strong quarterly growth: Revenue rose 55% year over year to $54.6 million, ahead of the $52.85 million consensus estimate. Diluted EPS increased to $0.06 from $0.03 and topped expectations of $0.05. Mama’s Creations Reports Second Quarter Fiscal 2027 Financial Results
• Positive Sentiment: Profitability improved: Net income more than doubled to $2.6 million, while adjusted EBITDA climbed 69% to $5.5 million. Operating expenses declined as a percentage of revenue, and adjusted EBITDA margin expanded to 10.1% from 9.3% a year earlier. Mama’s Creations Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Retail momentum continued: Mama’s added more than a dozen product placements, was selected for Costco’s national second-half multi-vendor mailer across all eight regions, and plans its first Kroger launch in more than 100 stores. Additional placements are planned with Albertsons, BJ’s, Sam’s Club, Ahold, Food Lion and other retailers.
• Positive Sentiment: Greater financial flexibility: Cash reached $138.6 million, supported by $11.9 million of operating cash flow and approximately $108.6 million in net proceeds from a July stock offering. Management said the strengthened balance sheet improves its ability to pursue accretive acquisitions and supports its longer-term path toward $1 billion in revenue and mid- to high-20% gross margins. Mama’s Creations Signals Sharper Line of Sight to $1 Billion Revenue
• Neutral Sentiment: Margin remains a watch point: Gross margin was 24.0%, below 24.9% a year ago, although it improved sequentially from 23.6% as recent product launches moved toward steady-state production.
• Negative Sentiment: Share dilution and valuation risk: The stock offering substantially increased cash but also expanded the share count. With MAMA trading at a high earnings multiple, investors may require continued rapid growth and successful acquisitions to justify the valuation.

Mama’s Creations Company Profile

Mama’s Creations, Inc engages in the marketing, manufacturing, and distribution of beef meatballs with sauce, turkey meatballs with sauce, beef meat loaf, sausage and peppers, chicken parmesan, and other similar meats and sauces. Its products include beef meatballs, turkey meatballs, stuffed meatballs, lasagna roll ups, retail ready meals, bulk deli, single-size pasta bowls, and packaged refrigerated products. Its brands include MamaMancini’s, Creative Salads, and The Olive Branch. The company was founded by Daniel Dougherty on July 22, 2009 and is headquartered in East Rutherford, NJ.