Nestle (OTCMKTS:NSRGY) Shares Gap Down - Should You Sell?

Key Points

• Nestlé shares gapped down pre-market from $101.35 to $97.48 and were last at $97.77, about a 4.7% decline on reported volume of ~22,594 shares.
• Analyst coverage is mixed—Morgan Stanley reaffirmed an underweight, Jefferies a hold, and MarketBeat's consensus rating is Hold (1 Buy, 1 Hold, 1 Sell).
• Company fundamentals show modest liquidity and leverage (debt-to-equity 1.40, current ratio 0.79) and institutional ownership is very low at 0.61%.

Nestle SA (OTCMKTS:NSRGY - Get Free Report)'s stock price gapped down before the market opened on Tuesday . The stock had previously closed at $101.35, but opened at $97.48. Nestle shares last traded at $97.77, with a volume of 22,594 shares changing hands.

Wall Street Analyst Weigh In

NSRGY has been the topic of several research reports. Morgan Stanley reaffirmed an "underweight" rating on shares of Nestle in a report on Thursday, February 12th. Jefferies Financial Group reaffirmed a "hold" rating on shares of Nestle in a report on Monday, February 23rd. One analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, Nestle presently has a consensus rating of "Hold".

Nestle Trading Down 4.7%

The company has a 50 day simple moving average of $101.27 and a two-hundred day simple moving average of $98.91. The company has a debt-to-equity ratio of 1.40, a quick ratio of 0.47 and a current ratio of 0.79.

Institutional Investors Weigh In On Nestle

Several large investors have recently added to or reduced their stakes in the stock. Accent Capital Management LLC increased its stake in Nestle by 4.6% during the third quarter. Accent Capital Management LLC now owns 2,345 shares of the company's stock worth $215,000 after acquiring an additional 104 shares during the last quarter. Lummis Asset Management LP boosted its position in shares of Nestle by 6.9% during the fourth quarter. Lummis Asset Management LP now owns 1,781 shares of the company's stock valued at $177,000 after buying an additional 115 shares during the period. Madison Asset Management LLC boosted its position in shares of Nestle by 3.5% during the third quarter. Madison Asset Management LLC now owns 4,033 shares of the company's stock valued at $370,000 after buying an additional 137 shares during the period. Studio Investment Management LLC boosted its position in shares of Nestle by 4.4% during the third quarter. Studio Investment Management LLC now owns 4,404 shares of the company's stock valued at $404,000 after buying an additional 187 shares during the period. Finally, IHT Wealth Management LLC boosted its position in shares of Nestle by 9.0% during the fourth quarter. IHT Wealth Management LLC now owns 2,836 shares of the company's stock valued at $280,000 after buying an additional 235 shares during the period. 0.61% of the stock is owned by institutional investors.

About Nestle

Nestlé SA is a Swiss multinational food and beverage company headquartered in Vevey, Switzerland. Founded in 1866 by Henri Nestlé, the company has grown into a global consumer goods firm and its American depositary receipts trade in the United States under the OTCMKTS ticker NSRGY. Nestlé operates across a broad range of food and beverage categories and is widely recognized for its portfolio of consumer-facing brands and products.

The company's main business activities include the manufacture, marketing and distribution of products in categories such as coffee and other beverages, bottled water, dairy and infant nutrition, prepared meals and culinary products, confectionery, and pet care.

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