Campbell's (NASDAQ:CPB) Lowered to "Strong Sell" Rating by Zacks Research

Key Points

• Zacks Research downgraded Campbell’s to “strong sell” from “hold,” adding to a largely cautious analyst outlook. The stock has an average “reduce” rating and a consensus price target of $19.94.
• Campbell’s shares opened at $20.94, well below their 12-month high of $34.17. The company’s latest quarterly revenue fell 7.9% year over year, although adjusted earnings of $0.39 per share matched estimates.
• Institutional investors own 52.35% of Campbell’s stock, with several major funds—including State Street, Dimensional Fund Advisors and Invesco—recently increasing their positions.

Campbell's (NASDAQ:CPB - Get Free Report) was downgraded by analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a report released on Wednesday, Zacks reports.

A number of other analysts also recently weighed in on CPB. BTIG Research reissued a "neutral" rating on shares of Campbell's in a report on Friday, September 4th. Barclays dropped their price objective on shares of Campbell's from $19.00 to $18.00 and set an "underweight" rating on the stock in a report on Friday, September 4th. JPMorgan Chase & Co. increased their target price on shares of Campbell's from $20.00 to $22.00 and gave the company a "neutral" rating in a research note on Tuesday, August 18th. Bank of America reduced their target price on shares of Campbell's from $20.00 to $18.00 and set an "underperform" rating for the company in a research note on Tuesday, June 9th. Finally, Sanford C. Bernstein restated an "underperform" rating and set a $19.00 price target (down from $21.00) on shares of Campbell's in a research note on Tuesday, June 9th. Twelve analysts have rated the stock with a Hold rating and seven have assigned a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Reduce" and a consensus price target of $19.94.

Campbell's Stock Performance

Shares of NASDAQ CPB opened at $20.94 on Wednesday. Campbell's has a 12 month low of $19.56 and a 12 month high of $34.17. The company has a market cap of $6.24 billion, a P/E ratio of 15.98, a P/E/G ratio of 2.58 and a beta of 0.03. The business's 50 day moving average is $22.61 and its two-hundred day moving average is $22.13. The company has a quick ratio of 0.33, a current ratio of 0.82 and a debt-to-equity ratio of 1.60.

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 the consensus estimate 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 revenue was down 7.9% compared to the same quarter last year. During the same period in the prior year, the company posted $0.62 earnings per share. Campbell's has set its FY 2027 guidance at 1.650-1.800 EPS. On average, equities analysts expect that Campbell's will post 1.7 EPS for the current year.

Hedge Funds Weigh In On Campbell's

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. State Street Corp raised its position in Campbell's by 1.3% in the second quarter. State Street Corp now owns 11,960,359 shares of the company's stock worth $366,585,000 after purchasing an additional 149,679 shares in the last quarter. Dimensional Fund Advisors LP boosted its holdings in Campbell's by 23.3% during the first quarter. Dimensional Fund Advisors LP now owns 10,239,231 shares of the company's stock valued at $228,026,000 after purchasing an additional 1,933,814 shares in the last quarter. Invesco Ltd. boosted its holdings in Campbell's by 21.6% during the fourth quarter. Invesco Ltd. now owns 9,719,409 shares of the company's stock valued at $270,880,000 after purchasing an additional 1,723,676 shares in the last quarter. California State Teachers Retirement System grew its stake in shares of Campbell's by 2,093.8% in the 2nd quarter. California State Teachers Retirement System now owns 4,981,665 shares of the company's stock valued at $110,942,000 after purchasing an additional 4,754,582 shares during the period. Finally, Two Sigma Investments LP grew its stake in shares of Campbell's by 534.8% in the 3rd quarter. Two Sigma Investments LP now owns 4,937,170 shares of the company's stock valued at $155,916,000 after purchasing an additional 4,159,398 shares during the period. 52.35% of the stock is owned by institutional investors.

Campbell's Company Profile

Campbell's NASDAQ: CPB is a branded food company that develops, produces and markets packaged meals, beverages and snacks. Its portfolio includes soups, sauces, pasta products, frozen meals, dips, crackers, cookies and yogurt.

The company's brands include Campbell's, Goldfish, Pepperidge Farm, V8, Prego, Pace, Swanson, Rao's, Michael Angelo's and noosa. Products are sold primarily through grocery stores, mass merchants, club stores, convenience stores, food-service distributors and e-commerce channels.

Founded in 1869 by Joseph A.

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