Andersons (NASDAQ:ANDE) Shares Gap Down Following Weak 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.

Shares of The Andersons, Inc. (NASDAQ:ANDE - Get Free Report) gapped down before the market opened on Tuesday following a dissappointing earnings announcement. 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 for the quarter, missing analysts' consensus estimates of $0.53 by ($0.29). The firm had revenue of $3.14 billion during the quarter, compared to analyst estimates of $2.86 billion. Andersons had a net margin of 0.70% and a return on equity of 5.28%. The firm's revenue for the quarter was up 12.2% on a year-over-year basis. During the same period in the prior year, the company posted $1.05 earnings per share.

Andersons Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, July 22nd. Investors of record on Tuesday, July 1st were issued a dividend of $0.195 per share. This represents a $0.78 annualized dividend and a yield of 2.1%. The ex-dividend date of this dividend was Tuesday, July 1st. Andersons's dividend payout ratio (DPR) is 33.19%.

Wall Street Analyst Weigh In

Several analysts recently commented on the company. Wall Street Zen lowered Andersons from a "buy" rating to a "hold" rating in a report on Thursday, May 15th. Lake Street Capital dropped their target price on Andersons from $70.00 to $55.00 and set a "buy" rating on the stock in a report on Thursday, May 8th. Finally, BMO Capital Markets assumed coverage on Andersons in a report on Tuesday, May 6th. They set a "market perform" rating and a $45.00 target price on the stock.

Hedge Funds Weigh In On Andersons

Several hedge funds and other institutional investors have recently made changes to their positions in ANDE. Vanguard Group Inc. increased its stake in Andersons by 2.9% during the first quarter. Vanguard Group Inc. now owns 4,113,185 shares of the basic materials company's stock worth $176,579,000 after acquiring an additional 115,948 shares during the last quarter. Charles Schwab Investment Management Inc. increased its stake in Andersons by 6.5% during the first quarter. Charles Schwab Investment Management Inc. now owns 800,220 shares of the basic materials company's stock worth $34,353,000 after acquiring an additional 48,596 shares during the last quarter. Geode Capital Management LLC increased its stake in Andersons by 0.6% during the second quarter. Geode Capital Management LLC now owns 799,891 shares of the basic materials company's stock worth $29,400,000 after acquiring an additional 4,495 shares during the last quarter. Northern Trust Corp increased its stake in Andersons by 11.0% during the fourth quarter. Northern Trust Corp now owns 615,897 shares of the basic materials company's stock worth $24,956,000 after acquiring an additional 61,250 shares during the last quarter. Finally, Invesco Ltd. increased its stake in Andersons by 12.5% during the first quarter. Invesco Ltd. now owns 615,797 shares of the basic materials company's stock worth $26,436,000 after acquiring an additional 68,498 shares during the last quarter. Hedge funds and other institutional investors own 87.06% of the company's stock.

Andersons Stock Performance

The firm has a 50 day simple moving average of $36.55 and a 200-day simple moving average of $38.65. The company has a debt-to-equity ratio of 0.36, a current ratio of 2.01 and a quick ratio of 0.89. The company has a market cap of $1.30 billion, a price-to-earnings ratio of 16.14 and a beta of 0.75.

Andersons Company Profile

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.