B&G Foods (NYSE:BGS) Share Price Passes Above 200 Day Moving Average - Should You Sell?

Key Points

• B&G Foods' share price crossed above its 200-day moving average of $4.69, trading as high as $5.59 and last at $5.535 with about 1.54M shares changing hands, signaling a short-term technical uptick.
• Analysts remain cautious: the consensus rating is Reduce with an average price target of $4.90 (four Hold ratings, two Sell ratings), implying potential downside from current levels.
• The stock yields a 13.7% dividend ($0.19 quarterly), but a negative payout ratio (-140.74%), negative net margin, high debt-to-equity (4.30) and recent insider selling raise concerns about dividend sustainability and underlying fundamentals.

B&G Foods, Inc. (NYSE:BGS - Get Free Report)'s share price crossed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $4.69 and traded as high as $5.59. B&G Foods shares last traded at $5.5350, with a volume of 1,540,398 shares traded.

Analysts Set New Price Targets

BGS has been the topic of a number of research analyst reports. Weiss Ratings restated a "sell (d)" rating on shares of B&G Foods in a report on Monday, December 29th. Evercore set a $5.00 target price on B&G Foods in a research report on Wednesday, March 4th. TD Cowen reaffirmed a "sell" rating on shares of B&G Foods in a research report on Wednesday, March 4th. Finally, Barclays upped their target price on B&G Foods from $5.00 to $6.00 and gave the stock an "equal weight" rating in a research report on Tuesday. Four analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, B&G Foods has a consensus rating of "Reduce" and an average price target of $4.90.

B&G Foods Price Performance

The company has a market capitalization of $445.07 million, a price-to-earnings ratio of -10.25 and a beta of 0.46. The business has a 50-day moving average price of $5.19 and a two-hundred day moving average price of $4.69. The company has a quick ratio of 1.43, a current ratio of 3.32 and a debt-to-equity ratio of 4.30.

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

B&G Foods Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, April 30th. Investors of record on Tuesday, March 31st will be given a $0.19 dividend. This represents a $0.76 dividend on an annualized basis and a yield of 13.7%. The ex-dividend date of this dividend is Tuesday, March 31st. B&G Foods's dividend payout ratio is presently -140.74%.

Insider Activity at B&G Foods

In related news, EVP Martin C. Schoch sold 11,321 shares of the stock in a transaction on Thursday, March 12th. The stock was sold at an average price of $5.40, for a total value of $61,133.40. Following the completion of the sale, the executive vice president directly owned 34,347 shares of the company's stock, valued at approximately $185,473.80. This represents a 24.79% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director David L. Wenner sold 19,500 shares of the stock in a transaction on Friday, March 13th. The shares were sold at an average price of $5.19, for a total value of $101,205.00. Following the completion of the sale, the director directly owned 787,566 shares of the company's stock, valued at $4,087,467.54. The trade was a 2.42% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 50,821 shares of company stock valued at $266,138. 3.20% of the stock is owned by insiders.

Institutional Investors Weigh In On B&G Foods

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

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.