Advantage Solutions (NASDAQ:ADV) Downgraded by Wall Street Zen to "Sell"

Key Points

• Wall Street Zen downgraded Advantage Solutions from “Hold” to “Sell,” while the broader analyst consensus remains “Hold” with a $42.00 target price.
• Advantage Solutions reported a significant quarterly EPS miss, posting a loss of $4.85 per share versus the expected loss of $0.43. The company also recorded negative net margin and return on equity.
• The stock opened at $28.17 and has shown substantial volatility, trading between $12.23 and $53.63 over the past year; insiders own 9.70% of shares and institutional investors own 49.82%.

Advantage Solutions (NASDAQ:ADV - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a report issued on Saturday.

Other equities analysts also recently issued research reports about the company. Weiss Ratings reiterated a "sell (d-)" rating on shares of Advantage Solutions in a research report on Monday. Zacks Research upgraded Advantage Solutions from a "strong sell" rating to a "hold" rating in a research report on Monday, May 4th. Canaccord Genuity Group upped their target price on Advantage Solutions from $37.50 to $50.00 and gave the stock a "buy" rating in a research note on Thursday, May 7th. Finally, Morgan Stanley reduced their target price on Advantage Solutions from $35.00 to $34.00 and set an "equal weight" rating for the company in a research note on Thursday. One research analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $42.00.

Advantage Solutions Trading Up 11.2%

ADV stock opened at $28.17 on Friday. The company's 50-day simple moving average is $38.56 and its 200-day simple moving average is $29.82. The company has a quick ratio of 1.95, a current ratio of 1.79 and a debt-to-equity ratio of 3.77. Advantage Solutions has a 52-week low of $12.23 and a 52-week high of $53.63. The firm has a market cap of $374.66 million, a P/E ratio of -1.32 and a beta of 2.18.

Advantage Solutions (NASDAQ:ADV - Get Free Report) last posted its earnings results on Wednesday, August 5th. The company reported ($4.85) EPS for the quarter, missing analysts' consensus estimates of ($0.43) by ($4.42). Advantage Solutions had a negative net margin of 7.65% and a negative return on equity of 48.15%. The business had revenue of $889.45 million for the quarter, compared to analyst estimates of $887.30 million. As a group, equities analysts forecast that Advantage Solutions will post 3.1 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CEO David A. Peacock purchased 800 shares of the company's stock in a transaction dated Monday, May 18th. The stock was acquired at an average cost of $34.60 per share, for a total transaction of $27,680.00. Following the completion of the transaction, the chief executive officer directly owned 216,364 shares of the company's stock, valued at approximately $7,486,194.40. This trade represents a 0.37% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. 9.70% of the stock is owned by company insiders.

Hedge Funds Weigh In On Advantage Solutions

A number of institutional investors have recently added to or reduced their stakes in the stock. Creative Planning purchased a new stake in Advantage Solutions in the 2nd quarter valued at $26,000. Northwestern Mutual Wealth Management Co. purchased a new position in shares of Advantage Solutions during the 2nd quarter worth $31,000. Two Sigma Investments LP purchased a new position in shares of Advantage Solutions during the 3rd quarter worth $35,000. Virtu Financial LLC acquired a new position in shares of Advantage Solutions during the 3rd quarter valued at about $36,000. Finally, Voleon Capital Management LP acquired a new position in shares of Advantage Solutions during the 3rd quarter valued at about $36,000. Hedge funds and other institutional investors own 49.82% of the company's stock.

About Advantage Solutions

Advantage Solutions is a leading sales and marketing agency that provides outsourced solutions to consumer packaged goods companies. The firm's offerings include field sales execution, retail merchandising, in-store and shopper marketing, e-commerce activation and data-driven analytics. By deploying dedicated sales teams alongside proprietary technology, Advantage Solutions helps brands optimize shelf placement, ensure compliance with promotional programs and strengthen consumer engagement.

The company's service portfolio spans field sales and marketing, retail execution, brand ambassador programs, digital and experiential promotions, and shopper insights.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source