Flowers Foods (NYSE:FLO) Hits New 1-Year Low on Analyst Downgrade

Key Points

• Shares hit a new 52-week low after Deutsche Bank cut its price target from $11 to $7, with the stock trading as low as $8.02 on heavy volume.
• Analyst coverage is mixed but tilted negative — MarketBeat shows an average rating of Reduce and an average target of $11.80, with several firms issuing Sell/Strong Sell opinions.
• Flowers Foods pays a quarterly dividend of $0.2475 (annualized $0.99), implying a 12.2% yield, but the payout ratio is an elevated 247.5%, raising sustainability concerns.

Flowers Foods, Inc. (NYSE:FLO - Get Free Report) shares hit a new 52-week low during mid-day trading on Tuesday after Deutsche Bank Aktiengesellschaft lowered their price target on the stock from $11.00 to $7.00. Deutsche Bank Aktiengesellschaft currently has a hold rating on the stock. Flowers Foods traded as low as $8.02 and last traded at $7.9850, with a volume of 2566385 shares traded. The stock had previously closed at $8.37.

FLO has been the topic of a number of other reports. Weiss Ratings reiterated a "sell (d+)" rating on shares of Flowers Foods in a research note on Thursday, January 22nd. Wall Street Zen upgraded Flowers Foods from a "hold" rating to a "buy" rating in a report on Saturday, March 21st. Stephens set a $11.00 target price on Flowers Foods in a research report on Wednesday, February 18th. Finally, Zacks Research downgraded Flowers Foods from a "hold" rating to a "strong sell" rating in a report on Wednesday, February 25th. Four equities research analysts have rated the stock with a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of "Reduce" and an average target price of $11.80.

Insider Activity at Flowers Foods

In other news, CEO Ryals Mcmullian sold 209,000 shares of the firm's stock in a transaction dated Friday, January 2nd. The shares were sold at an average price of $10.87, for a total value of $2,271,830.00. Following the sale, the chief executive officer directly owned 1,022,380 shares in the company, valued at approximately $11,113,270.60. This trade represents a 16.97% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 11.57% of the company's stock.

Institutional Investors Weigh In On Flowers Foods

A number of hedge funds and other institutional investors have recently bought and sold shares of FLO. First Trust Advisors LP lifted its holdings in shares of Flowers Foods by 13.5% during the 3rd quarter. First Trust Advisors LP now owns 4,371,965 shares of the company's stock valued at $57,054,000 after purchasing an additional 521,670 shares during the last quarter. Franklin Resources Inc. grew its stake in Flowers Foods by 59.3% during the 2nd quarter. Franklin Resources Inc. now owns 267,898 shares of the company's stock worth $4,281,000 after buying an additional 99,744 shares during the last quarter. Thomasville National Bank grew its stake in Flowers Foods by 64.7% during the 3rd quarter. Thomasville National Bank now owns 703,740 shares of the company's stock worth $9,184,000 after buying an additional 276,411 shares during the last quarter. ProShare Advisors LLC increased its position in Flowers Foods by 139.1% during the 3rd quarter. ProShare Advisors LLC now owns 4,295,812 shares of the company's stock valued at $56,060,000 after buying an additional 2,499,194 shares in the last quarter. Finally, CWA Asset Management Group LLC acquired a new position in Flowers Foods during the 4th quarter valued at about $1,818,000. Hedge funds and other institutional investors own 75.45% of the company's stock.

Flowers Foods Stock Performance

The business has a 50 day simple moving average of $9.94 and a 200 day simple moving average of $11.07. The company has a quick ratio of 0.54, a current ratio of 0.75 and a debt-to-equity ratio of 1.04. The company has a market capitalization of $1.72 billion, a PE ratio of 20.24 and a beta of 0.36.

Flowers Foods (NYSE:FLO - Get Free Report) last issued its quarterly earnings results on Thursday, February 12th. The company reported $0.22 earnings per share for the quarter, topping analysts' consensus estimates of $0.16 by $0.06. Flowers Foods had a return on equity of 16.61% and a net margin of 1.59%.The business had revenue of $1.23 billion for the quarter, compared to analyst estimates of $1.23 billion. During the same quarter in the previous year, the firm earned $0.22 earnings per share. The company's revenue was up 11.0% on a year-over-year basis. Flowers Foods has set its FY 2026 guidance at 0.800-0.900 EPS. Equities research analysts predict that Flowers Foods, Inc. will post 1.18 EPS for the current fiscal year.

Flowers Foods Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, March 20th. Shareholders of record on Friday, March 6th were given a dividend of $0.2475 per share. This represents a $0.99 annualized dividend and a yield of 12.2%. The ex-dividend date of this dividend was Friday, March 6th. Flowers Foods's payout ratio is currently 247.50%.

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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