BBB Foods (NYSE:TBBB) Downgraded by Wall Street Zen to Sell

Key Points

• Wall Street Zen downgraded BBB Foods (NYSE:TBBB) from "hold" to "sell," though analysts are mixed overall (3 Buys, 2 Holds, 2 Sells) with a consensus rating of "Hold" and a consensus target price of $41.40.
• BBB Foods missed the latest quarter with EPS of ($0.49) versus ($0.27) expected and shows weak fundamentals—negative net margin and ROE, high leverage (debt/equity 2.61) and low liquidity (quick ratio 0.35, current ratio 0.62)—with analysts forecasting -$0.57 EPS for the year.
• Several institutional investors have recently increased positions (including Goldman Sachs, Qube Research and Sei), but institutional ownership remains relatively low at 8.42%.

BBB Foods (NYSE:TBBB - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued on Saturday.

TBBB has been the topic of several other reports. UBS Group raised their target price on shares of BBB Foods from $31.00 to $43.00 and gave the company a "neutral" rating in a report on Friday, February 20th. Wells Fargo & Company set a $42.00 target price on shares of BBB Foods in a report on Friday, March 13th. Morgan Stanley raised shares of BBB Foods to an "overweight" rating in a report on Wednesday, January 28th. JPMorgan Chase & Co. raised their target price on shares of BBB Foods from $44.00 to $46.00 and gave the company an "overweight" rating in a report on Monday, April 20th. Finally, Itau BBA Securities raised shares of BBB Foods from a "market perform" rating to an "outperform" rating and set a $42.00 target price on the stock in a report on Friday, March 13th. Three investment analysts have rated the stock with a Buy rating, two have given a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $41.40.

BBB Foods Price Performance

TBBB stock opened at $37.26 on Friday. The company has a quick ratio of 0.35, a current ratio of 0.62 and a debt-to-equity ratio of 2.61. BBB Foods has a 12 month low of $23.81 and a 12 month high of $40.09. The firm has a market cap of $4.35 billion, a P/E ratio of -28.23 and a beta of 0.01. The company's 50-day moving average price is $35.71 and its two-hundred day moving average price is $33.21.

BBB Foods (NYSE:TBBB - Get Free Report) last released its earnings results on Wednesday, March 11th. The company reported ($0.49) EPS for the quarter, missing the consensus estimate of ($0.27) by ($0.22). BBB Foods had a negative net margin of 3.72% and a negative return on equity of 70.80%. The firm had revenue of $1.22 billion during the quarter, compared to the consensus estimate of $1.24 billion. On average, analysts anticipate that BBB Foods will post -0.57 earnings per share for the current fiscal year.

Institutional Investors Weigh In On BBB Foods

A number of hedge funds have recently made changes to their positions in TBBB. Goldman Sachs Group Inc. boosted its stake in shares of BBB Foods by 276.8% in the 1st quarter. Goldman Sachs Group Inc. now owns 156,526 shares of the company's stock valued at $4,176,000 after purchasing an additional 114,990 shares in the last quarter. Qube Research & Technologies Ltd boosted its stake in shares of BBB Foods by 48.4% in the 2nd quarter. Qube Research & Technologies Ltd now owns 285,206 shares of the company's stock valued at $7,917,000 after purchasing an additional 92,989 shares in the last quarter. Sei Investments Co. boosted its stake in shares of BBB Foods by 57.7% in the 2nd quarter. Sei Investments Co. now owns 417,794 shares of the company's stock valued at $11,598,000 after purchasing an additional 152,883 shares in the last quarter. The Manufacturers Life Insurance Company boosted its stake in shares of BBB Foods by 0.3% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 705,005 shares of the company's stock valued at $19,571,000 after purchasing an additional 2,434 shares in the last quarter. Finally, DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main boosted its stake in shares of BBB Foods by 32.3% in the 2nd quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main now owns 171,979 shares of the company's stock valued at $4,774,000 after purchasing an additional 41,979 shares in the last quarter. 8.42% of the stock is currently owned by institutional investors and hedge funds.

About BBB Foods

BBB Foods Inc, through its subsidiaries, operates a chain of grocery retail stores in Mexico. It offers household cleaning, personal hyenine, cosmetics and beauty, pharmacy, and general merchandise products, as well as jellies and desserts, foods and drinks, pet supplies, coffee, tea, chocolates, breads, dry and frozen foods, snacks and sweets, and toilet papers and napkins. The company also provides branded, private label, and spot products. It serves low-to-middle income households through online channels.

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