Mama's Creations (NASDAQ:MAMA) Receives "Buy" Rating from DA Davidson

Key Points

• DA Davidson reiterated its Buy rating on Mama's Creations and set a $25 price target, implying about 31.5% upside from the prior close.
• The stock was trading around $19.00, near its 52-week high of $21.00, while the company carries a $778 million market cap and relatively low debt.
• Mama's Creations recently reported better-than-expected quarterly results, with EPS of $0.05 versus estimates of $0.03 and revenue of $52.77 million topping expectations.

Mama's Creations (NASDAQ:MAMA - Get Free Report)'s stock had its "buy" rating reiterated by stock analysts at DA Davidson in a research report issued on Monday,Benzinga reports. They presently have a $25.00 price target on the stock. DA Davidson's price target would suggest a potential upside of 31.54% from the stock's previous close.

Several other research analysts have also recently commented on MAMA. Weiss Ratings cut Mama's Creations from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday, June 5th. Wall Street Zen downgraded Mama's Creations from a "buy" rating to a "hold" rating in a report on Sunday. Finally, Zacks Research lowered Mama's Creations from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 27th. Four analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $18.80.

Mama's Creations Stock Down 0.2%

Mama's Creations stock traded down $0.04 during midday trading on Monday, hitting $19.00. 79,115 shares of the stock were exchanged, compared to its average volume of 502,726. Mama's Creations has a 1 year low of $7.88 and a 1 year high of $21.00. The firm has a market cap of $778.10 million, a P/E ratio of 135.82 and a beta of 0.56. The company has a debt-to-equity ratio of 0.09, a current ratio of 2.32 and a quick ratio of 1.90. The company has a 50 day moving average price of $15.92 and a two-hundred day moving average price of $15.30.

Mama's Creations (NASDAQ:MAMA - Get Free Report) last posted its quarterly earnings data on Monday, June 8th. The company reported $0.05 earnings per share for the quarter, beating analysts' consensus estimates of $0.03 by $0.02. The company had revenue of $52.77 million during the quarter, compared to analysts' expectations 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 period in the prior year, the company posted $0.03 EPS. On average, sell-side analysts predict that Mama's Creations will post 0.26 earnings per share for the current fiscal year.

Insider Activity

In related news, CEO Adam Laurance Michaels sold 16,223 shares of the company'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 transaction of $248,211.90. Following the sale, the chief executive officer directly owned 695,288 shares of the company's stock, valued at approximately $10,637,906.40. This represents a 2.28% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible 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. Corporate insiders own 1.03% of the company's stock.

Institutional Trading of Mama's Creations

Several institutional investors have recently added to or reduced their stakes in the business. Kornitzer Capital Management Inc. KS bought a new position in Mama's Creations in the 4th quarter worth about $1,016,000. Royce & Associates LP bought a new stake in shares of Mama's Creations during the fourth quarter valued at approximately $2,834,000. Nicholas Company Inc. boosted its position in shares of Mama's Creations by 18.6% during the fourth quarter. Nicholas Company Inc. now owns 394,601 shares of the company's stock worth $5,323,000 after buying an additional 61,860 shares during the period. Next Century Growth Investors LLC boosted its position in shares of Mama's Creations by 54.5% during the fourth quarter. Next Century Growth Investors LLC now owns 1,691,395 shares of the company's stock worth $22,817,000 after buying an additional 596,688 shares during the period. Finally, UBS Group AG boosted its position in shares of Mama's Creations by 89.7% during the fourth quarter. UBS Group AG now owns 183,422 shares of the company's stock worth $2,474,000 after buying an additional 86,728 shares during the period. Institutional investors own 45.18% of the company's stock.

About Mama's Creations

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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