Albertsons Companies, Inc. (NYSE:ACI) Receives Average Rating of "Hold" from Brokerages

Key Points

• Broker consensus remains “Hold”: Of 17 analysts covering Albertsons, eight rated it a hold, five a buy and four a sell. The average 12-month price target is approximately $15.31, while several firms recently lowered their targets.
• Recent earnings fell short of expectations: Albertsons reported quarterly EPS of $0.42 versus the $0.54 consensus estimate, although revenue of $24.94 billion slightly exceeded forecasts and rose 0.2% year over year.
• Insiders bought shares, but leverage and valuation remain concerns: Executives purchased 218,909 shares worth about $2.5 million in the latest quarter. The stock was trading at $12.40, with a 5.5% dividend yield, a debt-to-equity ratio of 5.22 and a very high P/E ratio of 155.04.

Shares of Albertsons Companies, Inc. (NYSE:ACI - Get Free Report) have been given a consensus recommendation of "Hold" by the seventeen brokerages that are presently covering the firm, MarketBeat reports. Four analysts have rated the stock with a sell recommendation, eight have assigned a hold recommendation and five have given a buy recommendation to the company. The average 12 month price objective among brokers that have issued a report on the stock in the last year is $15.3077.

A number of research firms have weighed in on ACI. Weiss Ratings downgraded Albertsons Companies from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Friday, May 29th. Zacks Research cut Albertsons Companies from a "hold" rating to a "strong sell" rating in a research report on Tuesday, July 28th. BMO Capital Markets downgraded Albertsons Companies from an "outperform" rating to a "market perform" rating and dropped their price objective for the stock from $23.00 to $12.00 in a research note on Friday, July 24th. JPMorgan Chase & Co. cut their price objective on Albertsons Companies from $20.00 to $14.00 and set an "overweight" rating for the company in a report on Friday, July 24th. Finally, The Goldman Sachs Group cut their price objective on Albertsons Companies from $24.00 to $16.00 and set a "buy" rating for the company in a report on Friday, July 24th.

Insider Activity

In other Albertsons Companies news, CEO Susan Morris bought 39,409 shares of the company's stock in a transaction that occurred on Tuesday, July 28th. The shares were acquired at an average cost of $11.42 per share, for a total transaction of $450,050.78. Following the acquisition, the chief executive officer directly owned 1,092,956 shares of the company's stock, valued at $12,481,557.52. This trade represents a 3.74% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available through this link. Also, EVP Thomas M. Moriarty bought 170,500 shares of the company's stock in a transaction that occurred on Monday, July 27th. The stock was acquired at an average price of $11.51 per share, for a total transaction of $1,962,455.00. Following the completion of the acquisition, the executive vice president directly owned 308,946 shares in the company, valued at approximately $3,555,968.46. This represents a 123.15% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last quarter, insiders acquired 218,909 shares of company stock worth $2,515,826. Corporate insiders own 1.18% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Fifth Third Bancorp increased its position in shares of Albertsons Companies by 2,707.5% in the first quarter. Fifth Third Bancorp now owns 123,867 shares of the company's stock worth $2,111,000 after acquiring an additional 119,455 shares in the last quarter. Norges Bank purchased a new stake in shares of Albertsons Companies in the 4th quarter valued at approximately $388,089,000. Vanguard Group Inc. lifted its position in shares of Albertsons Companies by 14.9% in the 4th quarter. Vanguard Group Inc. now owns 39,330,507 shares of the company's stock valued at $675,305,000 after acquiring an additional 5,110,777 shares in the last quarter. Strategic Global Advisors LLC acquired a new position in Albertsons Companies in the 4th quarter worth approximately $2,858,000. Finally, III Capital Management boosted its stake in Albertsons Companies by 78.9% in the 4th quarter. III Capital Management now owns 215,370 shares of the company's stock worth $3,698,000 after purchasing an additional 95,000 shares during the period. Institutional investors and hedge funds own 71.35% of the company's stock.

Albertsons Companies Stock Up 3.3%

ACI stock opened at $12.40 on Friday. Albertsons Companies has a 52 week low of $10.86 and a 52 week high of $20.00. The company has a market capitalization of $6.02 billion, a price-to-earnings ratio of 155.04, a price-to-earnings-growth ratio of 2.05 and a beta of 0.42. The firm's 50-day moving average is $13.65 and its two-hundred day moving average is $15.84. The company has a current ratio of 0.84, a quick ratio of 0.21 and a debt-to-equity ratio of 5.22.

Albertsons Companies (NYSE:ACI - Get Free Report) last issued its quarterly earnings results on Thursday, July 23rd. The company reported $0.42 earnings per share for the quarter, missing analysts' consensus estimates of $0.54 by ($0.12). Albertsons Companies had a return on equity of 45.59% and a net margin of 0.08%.The company had revenue of $24.94 billion during the quarter, compared to analyst estimates of $24.84 billion. During the same period in the prior year, the company posted $0.55 earnings per share. The company's revenue was up .2% on a year-over-year basis. Albertsons Companies has set its FY 2026 guidance at 1.750-1.850 EPS. On average, analysts forecast that Albertsons Companies will post 1.65 earnings per share for the current fiscal year.

Albertsons Companies Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, August 7th. Shareholders of record on Friday, July 24th were issued a $0.17 dividend. This represents a $0.68 dividend on an annualized basis and a yield of 5.5%. The ex-dividend date of this dividend was Friday, July 24th. Albertsons Companies's dividend payout ratio is presently 850.00%.

About Albertsons Companies

Albertsons Companies, Inc NYSE: ACI is one of the largest food and drug retailers in the United States, operating a diversified portfolio of grocery store banners. Founded in 1939 by Joe Albertson in Boise, Idaho, the company has grown through both organic expansion and strategic acquisitions. Its core business activities encompass the sale of fresh produce, meat, bakery items, deli offerings, pharmacy services, and general merchandise. The company's retail operations are complemented by an in-house private-label program, featuring brands such as O Organics, Open Nature, and Lucerne, which cater to a range of customer preferences and price points.

Throughout its history, Albertsons Companies has pursued growth via mergers and partnerships.

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