Flowers Foods, Inc. (NYSE:FLO) Given Consensus Rating of "Reduce" by Brokerages

Key Points

• Flowers Foods has a “Reduce” consensus rating: Six analysts cover the stock, with two issuing sell ratings and four recommending hold. The average 12-month price target is $7.60.
• Operating results weakened: Quarterly EPS came in at $0.21 versus the $0.22 consensus estimate, while revenue fell 4% year over year to $1.19 billion, below expectations.
• The stock faces significant financial pressure despite its dividend: Shares opened at $6.21, near their 52-week low of $6.10, while the $0.50 annual dividend implies an 8.1% yield but a very high 192.31% payout ratio.

Flowers Foods, Inc. (NYSE:FLO - Get Free Report) has been given a consensus recommendation of "Reduce" by the six ratings firms that are currently covering the stock, Marketbeat.com reports. Two equities research analysts have rated the stock with a sell rating and four have given a hold rating to the company. The average 12 month price target among brokerages that have issued a report on the stock in the last year is $7.60.

A number of research firms have weighed in on FLO. Stephens cut their price objective on shares of Flowers Foods from $8.00 to $6.00 and set an "equal weight" rating on the stock in a research report on Monday, August 24th. Jefferies Financial Group set a $7.00 target price on shares of Flowers Foods in a research report on Monday, August 3rd. Zacks Research raised Flowers Foods from a "strong sell" rating to a "hold" rating in a research report on Thursday, May 21st. Finally, Weiss Ratings raised shares of Flowers Foods from a "sell (d)" rating to a "sell (d+)" rating in a report on Thursday, August 27th.

Flowers Foods Stock Down 1.8%

FLO opened at $6.21 on Thursday. The company has a market capitalization of $1.32 billion, a PE ratio of 23.87 and a beta of 0.39. The firm has a 50-day simple moving average of $7.52 and a two-hundred day simple moving average of $8.01. The company has a quick ratio of 0.57, a current ratio of 0.77 and a debt-to-equity ratio of 0.97. Flowers Foods has a 52 week low of $6.10 and a 52 week high of $14.72.

Flowers Foods (NYSE:FLO - Get Free Report) last released its quarterly earnings data on Thursday, August 20th. The company reported $0.21 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.22 by ($0.01). Flowers Foods had a return on equity of 14.91% and a net margin of 1.06%.The firm had revenue of $1.19 billion during the quarter, compared to the consensus estimate of $1.23 billion. During the same period in the previous year, the firm earned $0.28 EPS. The business's revenue was down 4.0% compared to the same quarter last year. Flowers Foods has set its FY 2026 guidance at 0.750-0.850 EPS. Analysts forecast that Flowers Foods will post 0.79 earnings per share for the current fiscal year.

Flowers Foods Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 25th. Investors of record on Friday, September 11th will be given a dividend of $0.125 per share. This represents a $0.50 annualized dividend and a yield of 8.1%. The ex-dividend date of this dividend is Friday, September 11th. Flowers Foods's dividend payout ratio is currently 192.31%.

Institutional Investors Weigh In On Flowers Foods

A number of large investors have recently made changes to their positions in FLO. Optiver Holding B.V. increased its holdings in shares of Flowers Foods by 542.5% in the first quarter. Optiver Holding B.V. now owns 3,386 shares of the company's stock valued at $28,000 after purchasing an additional 2,859 shares during the period. Parkside Financial Bank & Trust lifted its stake in shares of Flowers Foods by 200.0% in the 2nd quarter. Parkside Financial Bank & Trust now owns 3,663 shares of the company's stock valued at $29,000 after purchasing an additional 2,442 shares during the period. Nykredit A S acquired a new stake in Flowers Foods in the second quarter valued at approximately $30,000. Wilmington Savings Fund Society FSB lifted its holdings in Flowers Foods by 225.6% during the third quarter. Wilmington Savings Fund Society FSB now owns 2,400 shares of the company's stock valued at $31,000 after purchasing an additional 1,663 shares in the last quarter. Finally, IFP Advisors Inc boosted its holdings in Flowers Foods by 140.7% in the 4th quarter. IFP Advisors Inc now owns 3,025 shares of the company's stock worth $33,000 after buying an additional 1,768 shares during the last quarter. 75.45% of the stock is owned by hedge funds and other institutional investors.

Flowers Foods Company Profile

Flowers Foods, Inc is one of the largest producers of packaged bakery foods in the United States, offering a variety of fresh bread, buns, rolls, snack cakes and tortillas. Headquartered in Thomasville, Georgia, the company operates an extensive network of bakeries and distribution centers that serve retail grocery chains, convenience stores, mass merchandisers and foodservice customers nationwide. Flowers Foods markets its products under well-known brands such as Nature's Own, Wonder, Dave's Killer Bread, Mrs.

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