Bank of America Corp DE Increases Stake in Albertsons Companies, Inc. $ACI

Key Points

• Bank of America increased its Albertsons stake by 43.8% during the first quarter, reaching 1.9 million shares valued at approximately $32.4 million. Institutional investors collectively own 71.35% of the company.
• Wall Street sentiment remains mixed, with a consensus “Hold” rating and an average price target of $15.31. Several firms recently cut their targets, although JPMorgan and Goldman Sachs maintained bullish ratings.
• Albertsons reported quarterly EPS of $0.42, below the $0.54 consensus, while revenue slightly exceeded expectations at $24.94 billion. The company also declared a quarterly dividend of $0.17, implying a 5.5% annualized yield.

Bank of America Corp DE raised its position in Albertsons Companies, Inc. (NYSE:ACI - Free Report) by 43.8% in the 1st quarter, according to its most recent filing with the SEC. The firm owned 1,899,233 shares of the company's stock after acquiring an additional 578,401 shares during the period. Bank of America Corp DE owned approximately 0.38% of Albertsons Companies worth $32,363,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also made changes to their positions in ACI. Goldman Sachs Group Inc. lifted its holdings in shares of Albertsons Companies by 109.5% in the 1st quarter. Goldman Sachs Group Inc. now owns 1,542,468 shares of the company's stock valued at $33,919,000 after buying an additional 806,336 shares during the period. Empowered Funds LLC acquired a new position in Albertsons Companies during the first quarter worth $1,090,000. M&T Bank Corp raised its position in Albertsons Companies by 21.4% in the second quarter. M&T Bank Corp now owns 14,364 shares of the company's stock worth $308,000 after acquiring an additional 2,528 shares in the last quarter. First Trust Advisors LP raised its position in Albertsons Companies by 39.3% in the second quarter. First Trust Advisors LP now owns 504,944 shares of the company's stock worth $10,861,000 after acquiring an additional 142,457 shares in the last quarter. Finally, Bank of Nova Scotia lifted its holdings in Albertsons Companies by 5.4% in the second quarter. Bank of Nova Scotia now owns 14,041 shares of the company's stock valued at $302,000 after acquiring an additional 723 shares during the period. Hedge funds and other institutional investors own 71.35% of the company's stock.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on ACI. Citigroup reaffirmed a "neutral" rating and set a $11.00 price target (down from $17.00) on shares of Albertsons Companies in a research note on Monday, July 27th. UBS Group reiterated a "neutral" rating and issued a $12.00 price objective (down from $20.00) on shares of Albertsons Companies in a research note on Tuesday, July 28th. BMO Capital Markets downgraded shares of Albertsons Companies from an "outperform" rating to a "market perform" rating and decreased their price objective for the stock from $23.00 to $12.00 in a report on Friday, July 24th. JPMorgan Chase & Co. lowered their target price on shares of Albertsons Companies from $20.00 to $14.00 and set an "overweight" rating on the stock in a research report on Friday, July 24th. Finally, The Goldman Sachs Group dropped their target price on shares of Albertsons Companies from $24.00 to $16.00 and set a "buy" rating for the company in a report on Friday, July 24th. Five analysts have rated the stock with a Buy rating, eight have issued a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $15.31.

Insider Activity

In related news, CEO Susan Morris acquired 39,409 shares of the firm's stock in a transaction that occurred on Tuesday, July 28th. The shares were acquired at an average price of $11.42 per share, with a total value of $450,050.78. Following the completion of the purchase, the chief executive officer directly owned 1,092,956 shares in the company, valued at approximately $12,481,557.52. The trade was a 3.74% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Sharon Mccollam acquired 9,000 shares of the company's stock in a transaction that occurred on Friday, July 31st. The shares were bought at an average price of $11.48 per share, with a total value of $103,320.00. Following the transaction, the chief financial officer owned 567,051 shares in the company, valued at $6,509,745.48. This represents a 1.61% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have purchased 218,909 shares of company stock worth $2,515,826 over the last three months. 1.18% of the stock is currently owned by corporate insiders.

Albertsons Companies Stock Up 0.3%

ACI stock opened at $12.44 on Friday. The company's 50 day simple moving average is $13.57 and its 200-day simple moving average is $15.81. The firm has a market capitalization of $6.04 billion, a PE ratio of 155.44, a P/E/G ratio of 2.12 and a beta of 0.42. Albertsons Companies, Inc. has a 12 month low of $10.86 and a 12 month high of $20.00. The company has a debt-to-equity ratio of 5.22, a current ratio of 0.84 and a quick ratio of 0.21.

Albertsons Companies (NYSE:ACI - Get Free Report) last issued its quarterly earnings data on Thursday, July 23rd. The company reported $0.42 earnings per share for the quarter, missing analysts' consensus estimates of $0.54 by ($0.12). The business had revenue of $24.94 billion for the quarter, compared to analysts' expectations of $24.84 billion. Albertsons Companies had a return on equity of 45.59% and a net margin of 0.08%.The company's revenue for the quarter was up .2% on a year-over-year basis. During the same period last year, the business earned $0.55 earnings per share. Albertsons Companies has set its FY 2026 guidance at 1.750-1.850 EPS. Equities analysts expect that Albertsons Companies, Inc. will post 1.65 earnings per share for the current fiscal year.

Albertsons Companies Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, August 7th. Stockholders of record on Friday, July 24th were issued a $0.17 dividend. This represents a $0.68 dividend on an annualized basis and a dividend yield of 5.5%. The ex-dividend date of this dividend was Friday, July 24th. Albertsons Companies's payout ratio is 850.00%.

Albertsons Companies Profile

Albertsons Companies, Inc NYSE: ACI is one of the largest food and drug retailers in the United States, operating a diversified portfolio of grocery store banners. Founded in 1939 by Joe Albertson in Boise, Idaho, the company has grown through both organic expansion and strategic acquisitions. Its core business activities encompass the sale of fresh produce, meat, bakery items, deli offerings, pharmacy services, and general merchandise. The company's retail operations are complemented by an in-house private-label program, featuring brands such as O Organics, Open Nature, and Lucerne, which cater to a range of customer preferences and price points.

Throughout its history, Albertsons Companies has pursued growth via mergers and partnerships.

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