Mama's Creations (NASDAQ:MAMA) Downgraded by Wall Street Zen to "Hold"

Key Points

• Wall Street Zen downgraded Mama’s Creations from “buy” to “hold,” adding to a mixed analyst picture that still leaves the stock with an overall Moderate Buy rating and an average target price of $18.80.
• The company recently beat quarterly expectations, reporting $0.05 EPS versus the $0.03 consensus and $52.77 million in revenue versus $51.63 million expected. It also posted a 3.21% net margin and 14.69% return on equity.
• Shares were trading higher at $19.05, near the 52-week high of $21.00, while CEO Adam Laurance Michaels sold shares in a pre-arranged transaction to cover tax obligations. Institutional investors continue to hold a sizable stake, owning 45.18% of the company.

Mama's Creations (NASDAQ:MAMA - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued on Sunday.

A number of other research analysts have also commented on the stock. Zacks Research lowered shares of Mama's Creations from a "strong-buy" rating to a "hold" rating in a research note on Monday, April 27th. DA Davidson raised Mama's Creations to a "strong-buy" rating in a report on Monday, July 6th. Finally, Weiss Ratings cut Mama's Creations from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, June 5th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $18.80.

Mama's Creations Stock Performance

Shares of MAMA traded up $0.89 during mid-day trading on Friday, reaching $19.05. 557,956 shares of the company's stock were exchanged, compared to its average volume of 835,079. The business's fifty day simple moving average is $15.92 and its 200-day simple moving average is $15.29. The stock has a market capitalization of $779.91 million, a PE ratio of 136.07 and a beta of 0.56. Mama's Creations has a 52-week low of $7.88 and a 52-week high of $21.00. The company has a debt-to-equity ratio of 0.09, a current ratio of 2.32 and a quick ratio of 1.90.

Mama's Creations (NASDAQ:MAMA - Get Free Report) last released its quarterly earnings results on Monday, June 8th. The company reported $0.05 EPS for the quarter, beating the consensus estimate of $0.03 by $0.02. The firm had revenue of $52.77 million during the quarter, compared to the consensus estimate of $51.63 million. Mama's Creations had a net margin of 3.21% and a return on equity of 14.69%. During the same quarter in the prior year, the firm earned $0.03 EPS. On average, equities research analysts expect that Mama's Creations will post 0.26 earnings per share for the current year.

Insider Activity

In other news, CEO Adam Laurance Michaels sold 16,223 shares of the firm's stock in a transaction that occurred on Thursday, April 16th. The stock was sold at an average price of $15.30, for a total value of $248,211.90. Following the completion of the sale, the chief executive officer directly owned 695,288 shares of the company's stock, valued at $10,637,906.40. This trade represents a 2.28% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Company insiders own 1.03% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of MAMA. State of Alaska Department of Revenue purchased a new stake in shares of Mama's Creations during the 4th quarter worth $63,000. SG Americas Securities LLC purchased a new position in shares of Mama's Creations in the 4th quarter valued at about $119,000. Bridgeway Capital Management LLC acquired a new stake in shares of Mama's Creations in the fourth quarter valued at about $135,000. Verition Fund Management LLC acquired a new stake in shares of Mama's Creations in the third quarter valued at about $105,000. Finally, Walleye Capital LLC purchased a new stake in Mama's Creations during the second quarter worth about $87,000. Hedge funds and other institutional investors own 45.18% of the company's stock.

Mama's Creations Company Profile

Mama's Creations, Inc engages in the marketing, manufacturing, and distribution of beef meatballs with sauce, turkey meatballs with sauce, beef meat loaf, sausage and peppers, chicken parmesan, and other similar meats and sauces. Its products include beef meatballs, turkey meatballs, stuffed meatballs, lasagna roll ups, retail ready meals, bulk deli, single-size pasta bowls, and packaged refrigerated products. Its brands include MamaMancini's, Creative Salads, and The Olive Branch. The company was founded by Daniel Dougherty on July 22, 2009 and is headquartered in East Rutherford, NJ.

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