Albertsons Companies (NYSE:ACI) Cut to "Equal Weight" at Wells Fargo & Company

Key Points

• Wells Fargo downgraded Albertsons from overweight to equal weight and set an $11 price target, implying slight downside from the stock’s current level.
• The stock was already under pressure, falling to about $11.39 and down 22%, near its 52-week low, with trading volume far above normal.
• Investor concerns were reinforced by Albertsons’ latest results: Q1 EPS missed estimates and the company cut FY2026 guidance to $1.75-$1.85 per share, below expectations.

Albertsons Companies (NYSE:ACI - Get Free Report) was downgraded by investment analysts at Wells Fargo & Company from an "overweight" rating to an "equal weight" rating in a research report issued on Thursday. They currently have a $11.00 price objective on the stock. Wells Fargo & Company's price objective indicates a potential downside of 3.46% from the stock's current price.

Several other equities research analysts also recently issued reports on ACI. Weiss Ratings downgraded Albertsons Companies from a "hold (c-)" rating to a "sell (d+)" rating in a report on Friday, May 29th. Citigroup dropped their price target on shares of Albertsons Companies from $22.00 to $17.00 and set a "buy" rating on the stock in a research report on Monday, June 29th. JPMorgan Chase & Co. reduced their price objective on shares of Albertsons Companies from $22.00 to $20.00 and set an "overweight" rating for the company in a research report on Tuesday, June 30th. UBS Group dropped their target price on shares of Albertsons Companies from $23.00 to $20.00 and set a "buy" rating on the stock in a research report on Wednesday, April 15th. Finally, Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $21.00 target price on shares of Albertsons Companies in a report on Monday, April 6th. Eight investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $19.67.

Albertsons Companies Stock Down 22.0%

ACI traded down $3.21 during trading hours on Thursday, hitting $11.39. 27,875,259 shares of the company's stock were exchanged, compared to its average volume of 7,382,185. The stock has a market cap of $5.58 billion, a price-to-earnings ratio of 35.77, a PEG ratio of 1.68 and a beta of 0.42. Albertsons Companies has a 1-year low of $11.02 and a 1-year high of $20.81. The stock's 50-day moving average is $15.04 and its two-hundred day moving average is $16.43. The company has a quick ratio of 0.20, a current ratio of 0.86 and a debt-to-equity ratio of 4.58.

Albertsons Companies (NYSE:ACI - Get Free Report) last issued its quarterly earnings data on Thursday, July 23rd. The company reported $0.42 earnings per share for the quarter, missing the consensus estimate of $0.55 by ($0.13). The company had revenue of $24.94 billion during the quarter, compared to the consensus estimate of $24.88 billion. Albertsons Companies had a net margin of 0.26% and a return on equity of 42.75%. Albertsons Companies's revenue for the quarter was up .2% compared to the same quarter last year. During the same period in the previous year, the company earned $0.55 earnings per share. Albertsons Companies has set its FY 2026 guidance at 1.750-1.850 EPS. Sell-side analysts predict that Albertsons Companies will post 2.11 earnings per share for the current fiscal year.

Institutional Trading of Albertsons Companies

Several hedge funds have recently made changes to their positions in the business. CWM LLC lifted its stake in Albertsons Companies by 103.5% in the fourth quarter. CWM LLC now owns 1,435 shares of the company's stock valued at $25,000 after buying an additional 730 shares during the last quarter. MassMutual Private Wealth & Trust FSB increased its holdings in Albertsons Companies by 185.1% in the fourth quarter. MassMutual Private Wealth & Trust FSB now owns 1,628 shares of the company's stock valued at $28,000 after buying an additional 1,057 shares in the last quarter. NBC Securities Inc. increased its holdings in Albertsons Companies by 91.2% during the 4th quarter. NBC Securities Inc. now owns 1,855 shares of the company's stock valued at $32,000 after acquiring an additional 885 shares in the last quarter. EverSource Wealth Advisors LLC increased its position in Albertsons Companies by 172.8% during the 4th quarter. EverSource Wealth Advisors LLC now owns 2,062 shares of the company's stock worth $35,000 after purchasing an additional 1,306 shares in the last quarter. Finally, Allworth Financial LP lifted its stake in shares of Albertsons Companies by 64.5% during the 3rd quarter. Allworth Financial LP now owns 2,799 shares of the company's stock worth $49,000 after purchasing an additional 1,097 shares during the period. Institutional investors and hedge funds own 71.35% of the company's stock.

More Albertsons Companies News

Here are the key news stories impacting Albertsons Companies this week:

• Positive Sentiment: Albertsons continues to invest in pricing and digital initiatives to defend market share and improve competitiveness over time, which could help offset softer consumer demand.
• Neutral Sentiment: The company announced a new regional operating model and an updated merchandising structure, changes that may improve efficiency but do not yet provide a near-term financial boost. Article Title
• Neutral Sentiment: Albertsons also announced that President and CFO Sharon McCollam plans to retire later this year, a leadership change that may create some uncertainty but does not appear to be the main driver of the selloff. Article Title
• Negative Sentiment: Fiscal Q1 EPS came in at $0.42, below analyst expectations of $0.55, signaling weaker-than-expected profitability. Article Title
• Negative Sentiment: Albertsons lowered its FY2026 guidance to EPS of $1.75-$1.85, below the market expectation of about $2.14, reinforcing concerns that earnings momentum is slowing. Article Title
• Negative Sentiment: Management also cut its sales outlook as grocery shoppers grow more cautious and reduce spending, which suggests softer top-line growth ahead. Article Title

Albertsons Companies Company Profile

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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