Albertsons Companies (NYSE:ACI) Lowered to "Hold" Rating by Wall Street Zen

Key Points

• Albertsons Companies has been downgraded from a "buy" to a "hold" rating by Wall Street Zen, signaling a more cautious outlook on the stock.
• Despite the downgrade, analysts maintain a Moderate Buy average rating with a price target of $23.94, reflecting some market optimism.
• The company's recent earnings report showed a slight increase in revenue year-over-year, with an earnings per share of $0.55, beating estimates by $0.01.

Albertsons Companies (NYSE:ACI - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued to investors on Monday.

Other equities analysts also recently issued research reports about the company. Zacks Research upgraded Albertsons Companies from a "strong sell" rating to a "hold" rating in a research note on Monday, August 25th. Roth Capital reissued a "buy" rating and issued a $24.00 price objective (up previously from $23.00) on shares of Albertsons Companies in a research report on Wednesday, July 16th. JPMorgan Chase & Co. initiated coverage on Albertsons Companies in a research note on Wednesday, August 20th. They issued an "overweight" rating and a $27.00 price objective for the company. Barclays began coverage on Albertsons Companies in a research report on Monday, July 21st. They set an "underweight" rating and a $19.00 target price for the company. Finally, UBS Group raised shares of Albertsons Companies from a "neutral" rating to a "buy" rating and boosted their price target for the stock from $22.00 to $27.00 in a report on Tuesday, July 22nd. Eleven research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $23.94.

Albertsons Companies Price Performance

Shares of NYSE:ACI opened at $18.74 on Monday. The company has a current ratio of 0.82, a quick ratio of 0.18 and a debt-to-equity ratio of 2.17. The stock has a market cap of $10.49 billion, a PE ratio of 11.43, a price-to-earnings-growth ratio of 1.91 and a beta of 0.51. The stock's fifty day simple moving average is $19.89 and its two-hundred day simple moving average is $21.01. Albertsons Companies has a 1-year low of $17.00 and a 1-year high of $23.20.

Albertsons Companies (NYSE:ACI - Get Free Report) last announced its earnings results on Tuesday, July 15th. The company reported $0.55 EPS for the quarter, beating the consensus estimate of $0.54 by $0.01. Albertsons Companies had a net margin of 1.18% and a return on equity of 37.92%. The company had revenue of $24.88 billion during the quarter, compared to the consensus estimate of $24.68 billion. During the same quarter in the prior year, the company posted $0.66 earnings per share. The firm's revenue for the quarter was up 2.5% on a year-over-year basis. Albertsons Companies has set its FY 2025 guidance at 2.030-2.160 EPS. As a group, analysts forecast that Albertsons Companies will post 2.14 EPS for the current fiscal year.

Institutional Investors Weigh In On Albertsons Companies

A number of institutional investors have recently made changes to their positions in the business. Norges Bank purchased a new position in Albertsons Companies in the 2nd quarter worth approximately $320,613,000. AQR Capital Management LLC boosted its stake in shares of Albertsons Companies by 1,601.1% during the first quarter. AQR Capital Management LLC now owns 4,729,259 shares of the company's stock valued at $103,807,000 after purchasing an additional 4,451,250 shares during the period. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in shares of Albertsons Companies in the second quarter worth approximately $81,463,000. Voya Investment Management LLC increased its stake in shares of Albertsons Companies by 6,541.5% in the first quarter. Voya Investment Management LLC now owns 3,723,616 shares of the company's stock worth $81,882,000 after buying an additional 3,667,550 shares during the period. Finally, Sound Shore Management Inc CT purchased a new position in shares of Albertsons Companies in the second quarter worth $65,530,000. Hedge funds and other institutional investors own 71.35% of the company's stock.

About Albertsons Companies

Albertsons Companies, Inc, through its subsidiaries, engages in the operation of food and drug stores in the United States. The company's food and drug retail stores offer grocery products, general merchandise, health and beauty care products, pharmacy, fuel, and other items and services. It also manufactures and processes food products for sale in stores.

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