Andersons (NASDAQ:ANDE) Shares Gap Down on Disappointing Earnings

Key Points

• Andersons, Inc. experienced a significant drop in share price, opening at $31.84 after announcing quarterly earnings of $0.24 EPS, which missed analysts' expectations of $0.53 EPS.
• The company's revenue for the quarter was $3.14 billion, exceeding expectations, with a year-over-year increase of 12.2%.
• Following the earnings announcement, several analysts adjusted their ratings on Andersons, with Lake Street Capital lowering its price target from $70.00 to $55.00.

The Andersons, Inc. (NASDAQ:ANDE - Get Free Report)'s share price gapped down prior to trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $34.65, but opened at $31.84. Andersons shares last traded at $34.96, with a volume of 40,315 shares traded.

The basic materials company reported $0.24 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.53 by ($0.29). Andersons had a return on equity of 7.35% and a net margin of 0.97%. The business had revenue of $3.14 billion during the quarter, compared to analysts' expectations of $2.86 billion. During the same quarter in the previous year, the company posted $1.05 EPS. The company's quarterly revenue was up 12.2% on a year-over-year basis.

Andersons Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, July 22nd. Shareholders of record on Tuesday, July 1st were issued a dividend of $0.195 per share. This represents a $0.78 annualized dividend and a dividend yield of 2.2%. The ex-dividend date of this dividend was Tuesday, July 1st. Andersons's dividend payout ratio is 24.61%.

Analyst Ratings Changes

Several research analysts have commented on ANDE shares. Lake Street Capital dropped their price objective on shares of Andersons from $70.00 to $55.00 and set a "buy" rating for the company in a report on Thursday, May 8th. BMO Capital Markets started coverage on shares of Andersons in a report on Tuesday, May 6th. They set a "market perform" rating and a $45.00 price objective for the company. Finally, Wall Street Zen downgraded shares of Andersons from a "buy" rating to a "hold" rating in a report on Thursday, May 15th.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. GAMMA Investing LLC lifted its holdings in shares of Andersons by 426.2% in the 1st quarter. GAMMA Investing LLC now owns 1,805 shares of the basic materials company's stock valued at $77,000 after acquiring an additional 1,462 shares during the last quarter. Trust Co. of Toledo NA OH bought a new position in shares of Andersons in the 2nd quarter valued at about $114,000. Point72 Hong Kong Ltd bought a new position in shares of Andersons in the 4th quarter valued at about $189,000. Mutual of America Capital Management LLC bought a new position in shares of Andersons in the 1st quarter valued at about $201,000. Finally, 1492 Capital Management LLC bought a new position in shares of Andersons in the 1st quarter valued at about $208,000. Institutional investors own 87.06% of the company's stock.

Andersons Trading Up 0.6%

The company has a debt-to-equity ratio of 0.37, a quick ratio of 0.89 and a current ratio of 1.76. The stock's fifty day moving average is $36.45 and its 200 day moving average is $38.79. The stock has a market cap of $1.19 billion, a P/E ratio of 11.04 and a beta of 0.75.

About Andersons

The Andersons, Inc operates in trade, renewables, and nutrient and industrial sectors in the United States, Canada, Mexico, Egypt, Switzerland, and internationally. It operates through three segments: Trade, Renewables, and Nutrient & Industrial. The company's Trade segment operates grain elevators; stores commodities; and provides grain marketing, risk management, and origination services, as well as sells commodities, such as corn, soybeans, wheat, oats, ethanol, and corn oil.

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