Campbell Soup (NYSE:CPB) Downgraded to Hold at Zacks Investment Research

Zacks Investment Research lowered shares of Campbell Soup (NYSE:CPB) from a buy rating to a hold rating in a research report released on Tuesday, Zacks.com reports. The firm currently has $60.00 price objective on the stock.

According to Zacks, “Shares of Campbell Soup have outpaced the industry in the past three months. The stock gained following the company’s robust second-quarter fiscal 2020 results, wherein both earnings and revenues came ahead of the Zacks Consensus Estimate and the former grew year over year. Results were backed by reduced interest expenses, benefits from cost savings, productivity enhancements and Snacks unit strength. The company highlighted that proceeds from divestitures have helped it curtail debt load. Notably, lower interest costs and solid EBIT in the first half led to a raised earnings guidance for fiscal 2020. However, softness in the ready-to-serve soup and V8 shelf stable juice categories weighed on the Meals & Beverages unit. Also, the company’s profits continue to be affected by input cost inflation and elevated marketing costs.”

Other equities analysts also recently issued reports about the company. Morgan Stanley began coverage on Campbell Soup in a research report on Monday, April 20th. They issued an equal weight rating for the company. Royal Bank of Canada reiterated a buy rating and issued a $59.00 target price on shares of Campbell Soup in a research report on Thursday, April 30th. ValuEngine raised Campbell Soup from a sell rating to a hold rating in a research note on Wednesday, March 4th. JPMorgan Chase & Co. increased their price target on Campbell Soup from $51.00 to $52.00 and gave the company a neutral rating in a research note on Friday, April 17th. Finally, Credit Suisse Group increased their price target on Campbell Soup from $53.00 to $55.00 and gave the company a neutral rating in a research note on Tuesday, April 21st. Four equities research analysts have rated the stock with a sell rating, eleven have issued a hold rating and three have given a buy rating to the stock. Campbell Soup currently has an average rating of Hold and a consensus price target of $50.44.

Campbell Soup stock opened at $48.35 on Tuesday. The company has a current ratio of 0.61, a quick ratio of 0.31 and a debt-to-equity ratio of 1.97. The company has a market capitalization of $14.24 billion, a PE ratio of 10.14, a P/E/G ratio of 2.36 and a beta of 0.43. Campbell Soup has a 12 month low of $35.27 and a 12 month high of $57.54. The stock has a 50-day moving average price of $50.16 and a two-hundred day moving average price of $48.48.

Campbell Soup (NYSE:CPB) last posted its earnings results on Wednesday, March 4th. The company reported $0.72 EPS for the quarter, beating the consensus estimate of $0.66 by $0.06. The firm had revenue of $2.16 billion during the quarter, compared to the consensus estimate of $2.16 billion. Campbell Soup had a return on equity of 50.69% and a net margin of 17.46%. The business’s quarterly revenue was down .5% on a year-over-year basis. During the same period last year, the company earned $0.79 earnings per share. As a group, analysts predict that Campbell Soup will post 2.79 earnings per share for the current fiscal year.

The firm also recently declared a quarterly dividend, which was paid on Monday, April 27th. Investors of record on Thursday, April 9th were issued a dividend of $0.35 per share. The ex-dividend date of this dividend was Wednesday, April 8th. This represents a $1.40 dividend on an annualized basis and a yield of 2.90%. Campbell Soup’s dividend payout ratio (DPR) is currently 60.87%.

Institutional investors have recently modified their holdings of the stock. Ameritas Investment Company LLC lifted its holdings in Campbell Soup by 81.3% during the fourth quarter. Ameritas Investment Company LLC now owns 553 shares of the company’s stock worth $27,000 after acquiring an additional 248 shares during the period. Prestige Wealth Management Group LLC lifted its holdings in Campbell Soup by 135.1% during the first quarter. Prestige Wealth Management Group LLC now owns 590 shares of the company’s stock worth $28,000 after acquiring an additional 339 shares during the period. Bessemer Group Inc. purchased a new stake in Campbell Soup in the fourth quarter worth $31,000. Orion Portfolio Solutions LLC purchased a new stake in Campbell Soup in the fourth quarter worth $31,000. Finally, Flagship Harbor Advisors LLC increased its position in Campbell Soup by 43.7% in the first quarter. Flagship Harbor Advisors LLC now owns 658 shares of the company’s stock worth $30,000 after buying an additional 200 shares during the last quarter. Institutional investors and hedge funds own 51.36% of the company’s stock.

Campbell Soup Company Profile

Campbell Soup Company, together with its subsidiaries, manufactures and markets branded food and beverage products. It operates through three segments: Americas Simple Meals and Beverages, Global Biscuits and Snacks, and Campbell Fresh. The Americas Simple Meals and Beverages segment engages in the retail and food service of Campbell's condensed and ready-to-serve soups; Swanson broth and stocks; Prego pasta sauces; Pace Mexican sauces; Campbell's gravies, pastas, beans, and dinner sauces; Swanson canned poultry products; Plum food and snack products; V8 juices and beverages; Campbell's tomato juices; and Pacific broth, soups, non-dairy beverages, and other simple meals.

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