The Campbell's Company (NASDAQ:CPB) Stock Has Consensus Target Price of $19.88

Key Points

• Analysts remain cautious on Campbell’s: Twenty analysts give the stock a consensus “Reduce” rating, with eight sells and 12 holds. The average 12-month price target is $19.88, below the reported $20.63 share price.
• Operating performance weakened: Campbell’s reported quarterly EPS of $0.39, matching estimates, but revenue fell 7.9% year over year to $2.14 billion and EPS declined from $0.62 in the prior-year quarter.
• The dividend was cut significantly: The company lowered its quarterly dividend to $0.25 from $0.39, implying a $1.00 annualized payout and a 4.8% yield.

Shares of The Campbell's Company (NASDAQ:CPB - Get Free Report) have been assigned a consensus rating of "Reduce" from the twenty analysts that are presently covering the firm, Marketbeat.com reports. Eight analysts have rated the stock with a sell rating and twelve have assigned a hold rating to the company. The average 12 month target price among brokers that have updated their coverage on the stock in the last year is $19.88.

A number of research firms have recently weighed in on CPB. Stephens set a $20.00 price target on shares of Campbell's in a report on Friday, August 28th. Barclays cut their target price on Campbell's from $19.00 to $18.00 and set an "underweight" rating on the stock in a report on Friday, September 4th. DA Davidson reaffirmed a "neutral" rating and issued a $20.00 price target on shares of Campbell's in a research report on Tuesday, September 8th. Evercore set a $21.00 price target on Campbell's in a research note on Monday, September 14th. Finally, Royal Bank Of Canada lowered their price objective on Campbell's from $21.00 to $19.00 and set a "sector perform" rating on the stock in a report on Friday, September 4th.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Dimensional Fund Advisors LP boosted its stake in Campbell's by 23.3% during the first quarter. Dimensional Fund Advisors LP now owns 10,239,231 shares of the company's stock worth $228,026,000 after buying an additional 1,933,814 shares in the last quarter. Bank of New York Mellon Corp acquired a new position in shares of Campbell's in the 2nd quarter valued at $79,090,000. First Trust Advisors LP lifted its holdings in shares of Campbell's by 35.0% during the 1st quarter. First Trust Advisors LP now owns 2,820,793 shares of the company's stock worth $62,819,000 after acquiring an additional 731,393 shares during the period. Lazard Asset Management LLC bought a new position in shares of Campbell's during the 1st quarter worth about $61,261,000. Finally, Hsbc Holdings PLC lifted its holdings in shares of Campbell's by 644.9% during the 1st quarter. Hsbc Holdings PLC now owns 1,864,119 shares of the company's stock worth $41,319,000 after acquiring an additional 1,613,873 shares during the period. Institutional investors own 52.35% of the company's stock.

Campbell's Stock Down 0.5%

CPB stock opened at $20.63 on Tuesday. Campbell's has a 12 month low of $18.60 and a 12 month high of $32.04. The firm has a market cap of $6.15 billion, a PE ratio of 15.75, a P/E/G ratio of 2.44 and a beta of 0.06. The firm has a 50 day simple moving average of $21.08 and a 200 day simple moving average of $22.62. The company has a debt-to-equity ratio of 1.60, a current ratio of 0.82 and a quick ratio of 0.33.

Campbell's (NASDAQ:CPB - Get Free Report) last released its quarterly earnings results on Thursday, September 3rd. The company reported $0.39 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.39. Campbell's had a net margin of 4.04% and a return on equity of 16.44%. The business had revenue of $2.14 billion for the quarter. During the same quarter in the prior year, the firm earned $0.62 EPS. The firm's 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. Equities research analysts forecast that Campbell's will post 1.70 earnings per share for the current fiscal year.

Campbell's Cuts Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, November 2nd. Shareholders of record on Thursday, October 1st will be given a $0.25 dividend. The ex-dividend date of this dividend is Thursday, October 1st. This represents a $1.00 annualized dividend and a yield of 4.8%. This is a decrease from Campbell's's previous quarterly dividend of $0.39. Campbell's's dividend payout ratio (DPR) is presently 76.34%.

Campbell's Company Profile

Campbell's, formerly known as Campbell Soup Company, is a food and beverage company headquartered in Camden, New Jersey. Founded in 1869, the company develops, manufactures and markets branded packaged foods sold primarily through grocery stores, mass retailers, club stores, e-commerce channels and food-service outlets.

Its portfolio includes soups, broths, sauces, pasta meals, snacks and other convenient foods. Key brands include Campbell's, Prego, Swanson, Pepperidge Farm, Goldfish, Snyder's of Hanover, Late July, Cape Cod, Kettle Brand, Michael Angelo's and Rao's.

Campbell's serves consumers primarily in the United States and Canada, with products distributed through a broad retail and food-service network.

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