BBB Foods (NYSE:TBBB) Shares Down 4.7% - What's Next?

Key Points

• Shares fell 4.7% to $35.87 on Monday, trading as low as $36.01 on sharply lower volume (≈150,955 shares, down ~76% versus the average).
• Analysts are mixed — the consensus rating is "Hold" with a $40 target, despite upgrades from Morgan Stanley and Itau BBA ($42 target) and downgrades from Weiss and Zacks.
• Recent results disappointed: the company reported an EPS miss of ($0.49) vs. ($0.27) expected and revenue of $1.22B vs. $1.24B expected, and the business shows negative profitability, high leverage (D/E 2.61) and weak liquidity.

BBB Foods Inc. (NYSE:TBBB - Get Free Report)'s share price dropped 4.7% during trading on Monday . The stock traded as low as $36.01 and last traded at $35.87. Approximately 150,955 shares traded hands during trading, a decline of 76% from the average daily volume of 638,473 shares. The stock had previously closed at $37.64.

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on the stock. Morgan Stanley raised shares of BBB Foods to an "overweight" rating in a report on Wednesday, January 28th. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of BBB Foods in a report on Friday, March 27th. The Goldman Sachs Group lifted their price target on shares of BBB Foods from $30.00 to $34.00 and gave the stock a "neutral" rating in a report on Thursday, December 18th. Zacks Research lowered shares of BBB Foods from a "hold" rating to a "strong sell" rating in a research note on Monday, March 23rd. Finally, Itau BBA Securities upgraded shares of BBB Foods from a "market perform" rating to an "outperform" rating and set a $42.00 price objective for the company in a research note on Friday, March 13th. Three research analysts have rated the stock with a Buy rating, two have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $40.00.

BBB Foods Price Performance

The business's 50-day moving average price is $35.82 and its 200 day moving average price is $32.51. The stock has a market capitalization of $4.19 billion, a PE ratio of -27.17 and a beta of 0.01. The company has a debt-to-equity ratio of 2.61, a quick ratio of 0.35 and a current ratio of 0.62.

BBB Foods (NYSE:TBBB - Get Free Report) last announced its earnings results on Wednesday, March 11th. The company reported ($0.49) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.27) by ($0.22). BBB Foods had a negative return on equity of 70.80% and a negative net margin of 3.72%.The company had revenue of $1.22 billion during the quarter, compared to analysts' expectations of $1.24 billion. Research analysts forecast that BBB Foods Inc. will post 0.15 earnings per share for the current year.

Institutional Investors Weigh In On BBB Foods

Large investors have recently added to or reduced their stakes in the company. Farther Finance Advisors LLC raised its stake in shares of BBB Foods by 92.5% during the fourth quarter. Farther Finance Advisors LLC now owns 824 shares of the company's stock valued at $28,000 after acquiring an additional 396 shares during the last quarter. Osaic Holdings Inc. bought a new position in BBB Foods during the 2nd quarter valued at approximately $25,000. Larson Financial Group LLC raised its position in BBB Foods by 547.9% during the 3rd quarter. Larson Financial Group LLC now owns 1,056 shares of the company's stock valued at $28,000 after purchasing an additional 893 shares during the last quarter. Smartleaf Asset Management LLC bought a new position in BBB Foods during the 4th quarter valued at approximately $39,000. Finally, Toth Financial Advisory Corp bought a new position in BBB Foods during the 3rd quarter valued at approximately $33,000. Institutional investors own 8.42% of the company's stock.

BBB Foods Company Profile

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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