Albertsons Companies (NYSE:ACI) Sets New 52-Week Low After Analyst Downgrade

Key Points

• Albertsons Companies shares reached a new 52-week low at $16.84 after Royal Bank of Canada downgraded the stock's price target from $23.00 to $21.00.
• Despite the downgrade, twelve analysts still maintain a Buy rating for the stock, with a consensus price target of $23.81.
• The company reported earnings of $0.55 per share last quarter, exceeding analyst expectations, and recently declared a dividend yield of 3.5%.

Shares of Albertsons Companies, Inc. (NYSE:ACI - Get Free Report) reached a new 52-week low on Monday after Royal Bank Of Canada lowered their price target on the stock from $23.00 to $21.00. Royal Bank Of Canada currently has an outperform rating on the stock. Albertsons Companies traded as low as $16.85 and last traded at $16.84, with a volume of 1317793 shares traded. The stock had previously closed at $17.38.

ACI has been the subject of several other reports. Telsey Advisory Group reissued an "outperform" rating and issued a $24.00 price objective on shares of Albertsons Companies in a report on Thursday. Wall Street Zen cut shares of Albertsons Companies from a "buy" rating to a "hold" rating in a research note on Monday, September 15th. UBS Group upgraded shares of Albertsons Companies from a "neutral" rating to a "buy" rating and lifted their price objective for the company from $22.00 to $27.00 in a research note on Tuesday, July 22nd. JPMorgan Chase & Co. began coverage on shares of Albertsons Companies in a report on Wednesday, August 20th. They issued an "overweight" rating and a $27.00 target price for the company. Finally, Roth Capital reissued a "buy" rating and set a $24.00 price target (up previously from $23.00) on shares of Albertsons Companies in a report on Wednesday, July 16th. Eleven research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $23.81.

Institutional Trading of Albertsons Companies

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ACI. West Oak Capital LLC acquired a new position in Albertsons Companies in the 2nd quarter valued at $30,000. SVB Wealth LLC acquired a new stake in Albertsons Companies in the 1st quarter worth about $32,000. Allworth Financial LP grew its holdings in Albertsons Companies by 98.4% in the 2nd quarter. Allworth Financial LP now owns 1,702 shares of the company's stock valued at $37,000 after buying an additional 844 shares during the period. Bessemer Group Inc. acquired a new position in shares of Albertsons Companies during the 1st quarter valued at about $40,000. Finally, GAMMA Investing LLC lifted its holdings in shares of Albertsons Companies by 340.1% during the 1st quarter. GAMMA Investing LLC now owns 1,919 shares of the company's stock worth $42,000 after acquiring an additional 1,483 shares during the period. Hedge funds and other institutional investors own 71.35% of the company's stock.

Albertsons Companies Price Performance

The company's 50-day moving average is $18.86 and its 200-day moving average is $20.65. The firm has a market capitalization of $9.46 billion, a price-to-earnings ratio of 10.31, a PEG ratio of 1.78 and a beta of 0.49. The company has a debt-to-equity ratio of 2.17, a current ratio of 0.82 and a quick ratio of 0.18.

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

Albertsons Companies Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, August 8th. Investors of record on Friday, July 25th were issued a $0.15 dividend. This represents a $0.60 annualized dividend and a yield of 3.5%. The ex-dividend date was Friday, July 25th. Albertsons Companies's dividend payout ratio is currently 36.59%.

Albertsons Companies Company Profile

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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