The Campbell's Company (NASDAQ:CPB) Stock Has Average Target Price of $19.88 According to Analysts

Key Points

• Analysts remain cautious on Campbell’s: Twenty firms give the stock an average “Reduce” rating, with seven sell ratings and thirteen holds. The average 12-month price target is $19.88, close to the reported share price of $19.49.
• Campbell’s latest quarterly results met expectations at $0.39 EPS, but revenue fell 7.9% year over year and EPS declined from $0.62 in the prior-year period.
• The quarterly dividend was cut from $0.39 to $0.25 per share, reducing the annualized payout to $1.00 and producing a 5.1% yield; the payout ratio stands at 119.08%.

Shares of The Campbell's Company (NASDAQ:CPB - Get Free Report) have been assigned an average rating of "Reduce" from the twenty research firms that are covering the stock, Marketbeat reports. Seven investment analysts have rated the stock with a sell recommendation and thirteen have given a hold recommendation to the company. The average 12 month price target among analysts that have issued ratings on the stock in the last year is $19.88.

A number of analysts have weighed in on the company. JPMorgan Chase & Co. boosted their price target on Campbell's from $20.00 to $22.00 and gave the stock a "neutral" rating in a research report on Tuesday, August 18th. Morgan Stanley lowered their price objective on Campbell's from $23.00 to $21.00 and set an "equal weight" rating on the stock in a report on Friday, June 5th. Bank of America cut their price objective on Campbell's from $20.00 to $18.00 and set an "underperform" rating on the stock in a research note on Tuesday, June 9th. Argus upgraded Campbell's to a "hold" rating in a report on Wednesday. Finally, Zacks Research lowered Campbell's from a "hold" rating to a "strong sell" rating in a report on Wednesday, September 9th.

Campbell's Stock Down 1.7%

Campbell's stock opened at $19.49 on Friday. The company has a market capitalization of $5.81 billion, a P/E ratio of 14.88, a P/E/G ratio of 2.33 and a beta of 0.06. The firm's fifty day simple moving average is $22.07 and its 200-day simple moving average is $21.62. The company has a current ratio of 0.82, a quick ratio of 0.33 and a debt-to-equity ratio of 1.60. Campbell's has a 1-year low of $19.10 and a 1-year high of $32.08.

Campbell's (NASDAQ:CPB - Get Free Report) last released its quarterly earnings data on Thursday, September 3rd. The company reported $0.39 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.39. The business had revenue of $2.14 billion during the quarter. Campbell's had a net margin of 4.04% and a return on equity of 16.44%. The firm's revenue for the quarter was down 7.9% on a year-over-year basis. During the same period in the previous year, the firm posted $0.62 EPS. Campbell's has set its FY 2027 guidance at 1.650-1.800 EPS. Sell-side analysts forecast that Campbell's will post 1.7 earnings per share for the current fiscal year.

Campbell's Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, November 2nd. Stockholders of record on Thursday, October 1st will be given a $0.25 dividend. This is a negative change from Campbell's's previous quarterly dividend of $0.39. This represents a $1.00 dividend on an annualized basis and a dividend yield of 5.1%. The ex-dividend date of this dividend is Thursday, October 1st. Campbell's's payout ratio is 119.08%.

Institutional Trading of Campbell's

Several large investors have recently modified their holdings of the company. Dimensional Fund Advisors LP raised its holdings in Campbell's by 23.3% in the 1st quarter. Dimensional Fund Advisors LP now owns 10,239,231 shares of the company's stock worth $228,026,000 after acquiring an additional 1,933,814 shares during the period. Bank of New York Mellon Corp lifted its position in Campbell's by 3.2% during the 4th quarter. Bank of New York Mellon Corp now owns 3,048,098 shares of the company's stock worth $84,951,000 after acquiring an additional 93,912 shares during the last quarter. Cerity Partners LLC boosted its holdings in Campbell's by 190.3% during the fourth quarter. Cerity Partners LLC now owns 2,680,839 shares of the company's stock valued at $74,715,000 after acquiring an additional 1,757,264 shares during the period. First Trust Advisors LP boosted its holdings in Campbell's by 35.0% during the first quarter. First Trust Advisors LP now owns 2,820,793 shares of the company's stock valued at $62,819,000 after acquiring an additional 731,393 shares during the period. Finally, Lazard Asset Management LLC acquired a new stake in shares of Campbell's in the first quarter valued at about $61,261,000. 52.35% of the stock is owned by institutional investors.

About Campbell's

Campbell's, formerly known as Campbell Soup Company, is a packaged food and beverage company headquartered in Camden, New Jersey. Founded in 1869, the company is best known for its soups and has expanded into a broad portfolio of branded meals, sauces, snacks and beverages.

Its meals and beverages portfolio includes Campbell's soups, Swanson broths and stocks, Prego pasta sauces, V8 vegetable beverages, Pace Mexican-style sauces and Rao's sauces and meals. The company also sells snack products through brands such as Goldfish, Pepperidge Farm, Lance, Late July and Snyder's of Hanover.

Campbell's primarily serves consumers in the United States and Canada through grocery stores, mass merchants, club stores, convenience retailers, foodservice distributors and e-commerce channels.

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