Andersons (NASDAQ:ANDE) Shares Gap Up After Better-Than-Expected Earnings

Key Points

• Andersons shares jumped after the company reported quarterly EPS of $2.15, well above the $1.48 analyst consensus. Revenue totaled $3.10 billion, below estimates of $3.28 billion and down 1.2% year over year.
• The company maintained a quarterly dividend of $0.20 per share, equivalent to an annualized $0.80 payout and a 1.1% yield.
• Analyst sentiment remains positive, with the stock carrying an average “Buy” rating and a consensus price target of $91.25; institutional investors own 87.06% of shares.

Shares of The Andersons, Inc. (NASDAQ:ANDE - Get Free Report) gapped up before the market opened on Tuesday following a better than expected earnings announcement. The stock had previously closed at $69.86, but opened at $76.81. Andersons shares last traded at $75.05, with a volume of 58,147 shares changing hands.

The basic materials company reported $2.15 earnings per share for the quarter, beating analysts' consensus estimates of $1.48 by $0.67. The company had revenue of $3.10 billion during the quarter, compared to the consensus estimate of $3.28 billion. Andersons had a net margin of 1.17% and a return on equity of 10.68%. The firm's quarterly revenue was down 1.2% on a year-over-year basis. During the same period in the previous year, the business earned $0.24 earnings per share.

Andersons Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, July 22nd. Stockholders of record on Wednesday, July 1st were given a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date was Wednesday, July 1st. Andersons's dividend payout ratio is presently 21.28%.

Analyst Upgrades and Downgrades

ANDE has been the subject of several recent analyst reports. Benchmark reaffirmed a "buy" rating on shares of Andersons in a research report on Monday, June 15th. Weiss Ratings raised shares of Andersons from a "hold (c)" rating to a "hold (c+)" rating in a report on Thursday, May 7th. UBS Group set a $90.00 price objective on shares of Andersons in a research report on Wednesday, May 20th. Wall Street Zen raised Andersons from a "hold" rating to a "buy" rating in a report on Saturday, May 9th. Finally, Texas Capital raised Andersons to a "strong-buy" rating in a report on Thursday, June 18th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and one has given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Buy" and an average target price of $91.25.

Insider Transactions at Andersons

In other Andersons news, Director Patrick E. Bowe sold 3,534 shares of the stock in a transaction dated Wednesday, July 22nd. The stock was sold at an average price of $80.53, for a total value of $284,593.02. Following the completion of the transaction, the director directly owned 74,875 shares in the company, valued at approximately $6,029,683.75. This trade represents a 4.51% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 4.30% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Dimensional Fund Advisors LP increased its position in Andersons by 0.7% in the 4th quarter. Dimensional Fund Advisors LP now owns 2,349,243 shares of the basic materials company's stock valued at $124,910,000 after acquiring an additional 17,278 shares during the period. Rubric Capital Management LP acquired a new stake in Andersons in the fourth quarter valued at $53,469,000. Janus Henderson Group PLC raised its position in Andersons by 35.1% during the 1st quarter. Janus Henderson Group PLC now owns 860,942 shares of the basic materials company's stock worth $61,768,000 after purchasing an additional 223,600 shares during the last quarter. Geode Capital Management LLC lifted its holdings in Andersons by 0.4% during the 4th quarter. Geode Capital Management LLC now owns 822,812 shares of the basic materials company's stock worth $43,757,000 after buying an additional 3,259 shares during the period. Finally, Victory Capital Management Inc. lifted its holdings in Andersons by 354.7% during the 4th quarter. Victory Capital Management Inc. now owns 731,019 shares of the basic materials company's stock worth $38,868,000 after buying an additional 570,245 shares during the period. Institutional investors own 87.06% of the company's stock.

Andersons Price Performance

The business has a 50-day simple moving average of $72.15 and a 200 day simple moving average of $69.93. The stock has a market cap of $2.58 billion, a P/E ratio of 20.16 and a beta of 0.65. The company has a current ratio of 1.37, a quick ratio of 0.62 and a debt-to-equity ratio of 0.43.

About Andersons

The Andersons, Inc operates as a diversified agriculture company offering a broad range of products and services to farmers, retailers and industrial customers. Through its Grain Group, the company purchases, stores, merchandises and transports corn, soybeans and other commodities, while its Renewables Group produces ethanol and distillers grains at multiple plants in the U.S. The Rail Group provides locomotive leasing, railcar repair and related maintenance services, and the Horticulture Group supplies turf, specialty and horticultural products to landscaping professionals and consumer lawn and garden retailers.

Founded in 1947 and headquartered in Maumee, Ohio, The Andersons has grown from a regional grain elevator operator into an integrated agribusiness platform.

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