The Campbell's Company (NASDAQ:CPB) Given Average Rating of "Reduce" by Brokerages

Key Points

• Analyst sentiment is broadly negative: Nineteen brokerages assign Campbell’s an average “Reduce” rating, including six sells and thirteen holds. The average 12-month price target is approximately $19.94, below the stock’s reported $21.38 price.
• Campbell’s reported quarterly revenue of $2.14 billion, down 7.9% year over year, while EPS of $0.39 matched expectations. The company forecast fiscal 2027 EPS of $1.65–$1.80.
• Management announced a cost-cutting program targeting about $500 million in savings through workforce reductions and other actions, while the quarterly dividend was reduced to $0.25 per share, representing a 4.7% yield.

Shares of The Campbell's Company (NASDAQ:CPB - Get Free Report) have been given an average rating of "Reduce" by the nineteen ratings firms that are currently covering the firm, Marketbeat reports. Six equities research analysts have rated the stock with a sell rating and thirteen have given a hold rating to the company. The average 12 month target price among brokers that have covered the stock in the last year is $19.9375.

A number of analysts recently weighed in on the stock. Barclays lowered their target price on shares of Campbell's from $19.00 to $18.00 and set an "underweight" rating on the stock in a research note on Friday. Wall Street Zen cut Campbell's from a "hold" rating to a "sell" rating in a report on Saturday. TD Cowen boosted their target price on shares of Campbell's from $20.00 to $22.00 and gave the company a "hold" rating in a research note on Wednesday, August 19th. Bank of America lowered their target price on shares of Campbell's from $20.00 to $18.00 and set an "underperform" rating on the stock in a report on Tuesday, June 9th. Finally, Weiss Ratings upgraded shares of Campbell's from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Monday, August 31st.

Campbell's News Roundup

Here are the key news stories impacting Campbell's this week:

• Positive Sentiment: Management announced a plan targeting approximately $500 million in savings, including workforce reductions and other cost actions. The initiative is intended to repair margins and accelerate debt reduction. Campbell’s slashes 13% of salaried workforce as part of $500M cost-cutting plan
• Positive Sentiment: Campbell’s plans to discuss its business and outlook at a Barclays Global Consumer Staples Conference fireside chat on September 9, giving investors an opportunity to hear more about the turnaround strategy. Campbell’s Barclays conference announcement

Campbell's Stock Performance

NASDAQ:CPB opened at $21.38 on Monday. The firm has a market capitalization of $6.38 billion, a PE ratio of 16.32, a PEG ratio of 2.49 and a beta of 0.03. Campbell's has a 1 year low of $19.56 and a 1 year high of $34.17. The company has a current ratio of 0.82, a quick ratio of 0.33 and a debt-to-equity ratio of 1.60. The firm's fifty day simple moving average is $22.73 and its 200 day simple moving average is $22.30.

Campbell's (NASDAQ:CPB - Get Free Report) last issued its quarterly earnings results on Thursday, September 3rd. The company reported $0.39 EPS for the quarter, hitting analysts' consensus estimates of $0.39. Campbell's had a return on equity of 16.44% and a net margin of 4.04%.The company had revenue of $2.14 billion during the quarter. During the same quarter last year, the firm earned $0.62 earnings per share. The firm's quarterly revenue was down 7.9% compared to the same quarter last year. Campbell's has set its FY 2027 guidance at 1.650-1.800 EPS. On average, sell-side analysts anticipate that Campbell's will post 1.71 EPS for the current year.

Campbell's Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, November 2nd. Shareholders of record on Thursday, October 1st will be paid a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 4.7%. The ex-dividend date of this dividend is Thursday, October 1st. Campbell's's dividend payout ratio is currently 76.34%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Sittner & Nelson LLC bought a new position in Campbell's in the 4th quarter valued at $29,000. Los Angeles Capital Management LLC bought a new position in Campbell's in the fourth quarter valued at approximately $29,000. Ankerstar Wealth LLC acquired a new stake in shares of Campbell's during the fourth quarter worth $29,000. Comprehensive Financial Planning Inc. PA acquired a new position in shares of Campbell's during the 2nd quarter worth about $31,000. Finally, IMA Advisory Services Inc. bought a new stake in Campbell's in the fourth quarter valued at approximately $33,000. 52.35% of the stock is owned by institutional investors and hedge funds.

About Campbell's

Campbell's NASDAQ: CPB is a leading manufacturer of shelf-stable foods and beverages, best known for its iconic soups and broths. Headquartered in Camden, New Jersey, the company offers a diverse portfolio of products designed to meet consumer demand for convenient, affordable meals and snacks. Since its founding in 1869, Campbell's has grown through a combination of organic innovation and strategic acquisitions to expand its presence in the food industry.

The company's brand portfolio includes Campbell's Condensed Soups, V8 juices, Prego pasta sauces, Swanson broths and stocks, Pace salsas and dips, and Pepperidge Farm baked snacks.

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.

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