B&G Foods, Inc. (NYSE:BGS) Declares Quarterly Dividend of $0.19

Key Points

• B&G Foods declared a $0.19 quarterly dividend (record/ex-dividend date March 31, payable April 30), equal to a $0.76 annualized payout and a roughly 14.5% yield.
• The dividend appears unsustainable: the company has a payout ratio of 126.7% and analysts' forecasts imply a future payout ratio above 100%, meaning earnings alone do not cover the dividend.
• Recent fundamentals and insider activity raise concerns — the firm reported a -2.37% net margin and negative P/E, revenue down 2.2% year-over-year, and insiders sold ~50,821 shares (~$266k) in the last 90 days.

B&G Foods, Inc. (NYSE:BGS - Get Free Report) declared a quarterly dividend on Monday, March 2nd. Stockholders of record on Tuesday, March 31st will be given a dividend of 0.19 per share on Thursday, April 30th. This represents a c) annualized dividend and a dividend yield of 14.5%. The ex-dividend date is Tuesday, March 31st.

B&G Foods has decreased its dividend by an average of 0.2%annually over the last three years. B&G Foods has a payout ratio of 126.7% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities research analysts expect B&G Foods to earn $0.67 per share next year, which means the company may not be able to cover its $0.76 annual dividend with an expected future payout ratio of 113.4%.

B&G Foods Price Performance

NYSE BGS opened at $5.23 on Friday. The stock has a market cap of $417.85 million, a price-to-earnings ratio of -9.68 and a beta of 0.46. B&G Foods has a 12 month low of $3.67 and a 12 month high of $7.24. The company's 50 day moving average is $4.98 and its two-hundred day moving average is $4.63. The company has a current ratio of 3.32, a quick ratio of 1.43 and a debt-to-equity ratio of 4.30.

B&G Foods (NYSE:BGS - Get Free Report) last announced its quarterly earnings data on Tuesday, March 3rd. The company reported $0.28 EPS for the quarter, meeting the consensus estimate of $0.28. The firm had revenue of $539.56 million for the quarter, compared to the consensus estimate of $537.50 million. B&G Foods had a negative net margin of 2.37% and a positive return on equity of 8.43%. The company's revenue was down 2.2% on a year-over-year basis. During the same period last year, the firm earned $0.31 EPS. As a group, research analysts anticipate that B&G Foods will post 0.7 earnings per share for the current year.

Insider Buying and Selling

In related news, Director David L. Wenner sold 19,500 shares of the stock in a transaction that occurred on Friday, March 13th. The shares were sold at an average price of $5.19, for a total transaction of $101,205.00. Following the completion of the sale, the director owned 787,566 shares of the company's stock, valued at $4,087,467.54. This represents a 2.42% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP Martin C. Schoch sold 11,321 shares of B&G Foods stock in a transaction on Thursday, March 12th. The stock was sold at an average price of $5.40, for a total transaction of $61,133.40. Following the completion of the transaction, the executive vice president directly owned 34,347 shares in the company, valued at $185,473.80. This represents a 24.79% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 50,821 shares of company stock worth $266,138 in the last 90 days. 3.20% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On B&G Foods

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Northwestern Mutual Wealth Management Co. grew its position in B&G Foods by 502.2% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 7,443 shares of the company's stock worth $31,000 after purchasing an additional 6,207 shares during the period. Triumph Capital Management acquired a new stake in B&G Foods in the 3rd quarter valued at $34,000. Allworth Financial LP lifted its stake in B&G Foods by 49.5% in the 3rd quarter. Allworth Financial LP now owns 7,891 shares of the company's stock valued at $35,000 after buying an additional 2,612 shares in the last quarter. Federated Hermes Inc. acquired a new stake in B&G Foods in the 2nd quarter worth about $35,000. Finally, Integrated Wealth Concepts LLC purchased a new position in B&G Foods in the 3rd quarter valued at $45,000. Institutional investors and hedge funds own 66.15% of the company's stock.

About B&G Foods

B&G Foods, Inc is a packaged foods holding company that develops, markets and distributes a diversified portfolio of branded shelf-stable and frozen food products. Headquartered in Parsippany, New Jersey, the company serves retail and foodservice customers across the United States and Canada. Through its network of manufacturing facilities, third-party co-packers and distribution partners, B&G Foods supplies grocery chains, mass merchandisers, club stores and e-commerce platforms.

The company's product portfolio spans multiple categories, including vegetables, beans, soups, sauces and condiments, snacks, cereals and refrigerated or frozen offerings.

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