Campbell's (NASDAQ:CPB) Lowered to "Sell" Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Campbell’s to “sell” from “hold.” Overall analyst sentiment is “reduce,” with 13 hold ratings and six sell ratings, and an average price target of $19.94.
• Campbell’s reported quarterly EPS of $0.39, matching estimates, but revenue fell 7.9% year over year to $2.14 billion and EPS declined from $0.62 in the prior-year period.
• The company is pursuing approximately $500 million in cost savings, including workforce reductions, to improve margins and accelerate debt reduction; institutional investors own 52.35% of the stock.

Campbell's (NASDAQ:CPB - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "hold" rating to a "sell" rating in a report released on Saturday, Wall Street Zen reports.

CPB has been the topic of a number of other research reports. TD Cowen upped their price target on shares of Campbell's from $20.00 to $22.00 and gave the stock a "hold" rating in a research note on Wednesday, August 19th. Zacks Research raised shares of Campbell's from a "strong sell" rating to a "hold" rating in a report on Monday, August 10th. Sanford C. Bernstein reiterated an "underperform" rating and issued a $19.00 target price (down from $21.00) on shares of Campbell's in a research note on Tuesday, June 9th. JPMorgan Chase & Co. increased their price target on shares of Campbell's from $20.00 to $22.00 and gave the company a "neutral" rating in a report on Tuesday, August 18th. Finally, Bank of America reduced their price target on shares of Campbell's from $20.00 to $18.00 and set an "underperform" rating for the company in a research report on Tuesday, June 9th. Thirteen research analysts have rated the stock with a Hold rating and six have issued a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Reduce" and an average target price of $19.94.

Campbell's Price Performance

CPB stock opened at $21.38 on Friday. The firm has a 50 day moving average price of $22.73 and a 200-day moving average price of $22.35. Campbell's has a 52-week low of $19.56 and a 52-week high of $34.17. The firm has a market capitalization of $6.38 billion, a price-to-earnings ratio of 16.32, a PEG ratio of 2.54 and a beta of 0.03. The company has a debt-to-equity ratio of 1.60, a quick ratio of 0.38 and a current ratio of 0.82.

Campbell's (NASDAQ:CPB - Get Free Report) last posted its quarterly earnings data on Thursday, September 3rd. The company reported $0.39 earnings per share for the quarter, meeting analysts' consensus estimates of $0.39. The company had revenue of $2.14 billion during the quarter. Campbell's had a return on equity of 16.44% and a net margin of 4.04%.The firm's quarterly revenue was down 7.9% on a year-over-year basis. During the same period last year, the business earned $0.62 EPS. Campbell's has set its FY 2027 guidance at 1.650-1.800 EPS. Equities research analysts forecast that Campbell's will post 1.74 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the stock. California State Teachers Retirement System boosted its holdings in Campbell's by 2,093.8% in the second quarter. California State Teachers Retirement System now owns 4,981,665 shares of the company's stock worth $110,942,000 after purchasing an additional 4,754,582 shares during the last quarter. Two Sigma Investments LP raised its stake in Campbell's by 534.8% during the 3rd quarter. Two Sigma Investments LP now owns 4,937,170 shares of the company's stock valued at $155,916,000 after buying an additional 4,159,398 shares during the last quarter. Bank of New York Mellon Corp bought a new position in shares of Campbell's during the 2nd quarter valued at $79,090,000. Brandywine Managers LLC bought a new position in shares of Campbell's during the 4th quarter valued at $92,793,000. Finally, Lazard Asset Management LLC purchased a new position in shares of Campbell's in the 1st quarter worth $61,261,000. 52.35% of the stock is owned by hedge funds and other institutional investors.

More Campbell's News

Here are the key news stories impacting Campbell's this week:

• Positive Sentiment: Management announced a plan targeting approximately $500 million in savings, including workforce reductions and other cost actions. The initiative is intended to repair margins and accelerate debt reduction. Campbell’s slashes 13% of salaried workforce as part of $500M cost-cutting plan
• Positive Sentiment: Campbell’s plans to discuss its business and outlook at a Barclays Global Consumer Staples Conference fireside chat on September 9, giving investors an opportunity to hear more about the turnaround strategy. Campbell’s Barclays conference announcement

Campbell's Company Profile

Campbell's NASDAQ: CPB is a leading manufacturer of shelf-stable foods and beverages, best known for its iconic soups and broths. Headquartered in Camden, New Jersey, the company offers a diverse portfolio of products designed to meet consumer demand for convenient, affordable meals and snacks. Since its founding in 1869, Campbell's has grown through a combination of organic innovation and strategic acquisitions to expand its presence in the food industry.

The company's brand portfolio includes Campbell's Condensed Soups, V8 juices, Prego pasta sauces, Swanson broths and stocks, Pace salsas and dips, and Pepperidge Farm baked snacks.

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.

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