Post (NYSE:POST) Downgraded to "Hold" Rating by Zacks Research

Key Points

• Zacks Research has downgraded Post Holdings (NYSE:POST) from a "strong-buy" rating to a "hold" rating, reflecting a shift in market sentiment.
• Despite the downgrade, other analysts have issued conflicting ratings, with Piper Sandler and JPMorgan maintaining "overweight" ratings and raising their target prices to $150.00 and $131.00, respectively.
• Post recently reported earnings of $2.03 per share, exceeding analysts' expectations, and announced a stock buyback program indicating potential undervaluation of its shares.

Post (NYSE:POST - Get Free Report) was downgraded by stock analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a report issued on Monday,Zacks.com reports.

Several other research analysts have also issued reports on the company. Wells Fargo & Company cut their price target on Post from $120.00 to $117.00 and set an "equal weight" rating on the stock in a report on Wednesday, July 9th. Piper Sandler increased their price target on Post from $140.00 to $150.00 and gave the stock an "overweight" rating in a report on Wednesday, June 11th. JPMorgan Chase & Co. increased their price target on Post from $122.00 to $131.00 and gave the stock an "overweight" rating in a report on Tuesday, August 26th. Mizuho dropped their target price on Post from $133.00 to $127.00 and set an "outperform" rating on the stock in a report on Wednesday, May 28th. Finally, Wall Street Zen upgraded Post from a "hold" rating to a "buy" rating in a report on Saturday, August 9th. Four analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $131.20.

Post Trading Up 0.3%

Shares of Post stock traded up $0.36 on Monday, hitting $104.12. 1,972,248 shares of the company's stock traded hands, compared to its average volume of 651,304. Post has a one year low of $101.05 and a one year high of $125.84. The company has a debt-to-equity ratio of 1.83, a current ratio of 2.60 and a quick ratio of 1.84. The company has a fifty day moving average of $107.49 and a two-hundred day moving average of $110.45. The company has a market capitalization of $5.66 billion, a price-to-earnings ratio of 17.71 and a beta of 0.51.

Post (NYSE:POST - Get Free Report) last announced its earnings results on Thursday, August 7th. The company reported $2.03 EPS for the quarter, beating the consensus estimate of $1.67 by $0.36. Post had a return on equity of 10.80% and a net margin of 4.62%.The company had revenue of $1.98 billion for the quarter, compared to analyst estimates of $1.95 billion. During the same quarter in the prior year, the company earned $1.54 EPS. The firm's revenue for the quarter was up 1.9% compared to the same quarter last year. As a group, sell-side analysts expect that Post will post 6.41 earnings per share for the current year.

Post announced that its Board of Directors has approved a share buyback plan on Friday, August 29th that allows the company to buyback $0.00 in shares. This buyback authorization allows the company to repurchase shares of its stock through open market purchases. Shares buyback plans are typically a sign that the company's management believes its stock is undervalued.

Insider Activity at Post

In other Post news, Director William P. Stiritz purchased 36,000 shares of the firm's stock in a transaction that occurred on Tuesday, August 19th. The stock was bought at an average cost of $109.53 per share, with a total value of $3,943,080.00. Following the completion of the transaction, the director owned 4,334,667 shares of the company's stock, valued at $474,776,076.51. The trade was a 0.84% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 11.40% of the company's stock.

Institutional Trading of Post

Large investors have recently bought and sold shares of the company. Bessemer Group Inc. increased its position in Post by 200.0% in the first quarter. Bessemer Group Inc. now owns 477 shares of the company's stock worth $56,000 after buying an additional 318 shares during the last quarter. Envestnet Asset Management Inc. boosted its holdings in shares of Post by 12.3% in the first quarter. Envestnet Asset Management Inc. now owns 302,241 shares of the company's stock worth $35,169,000 after acquiring an additional 32,995 shares during the period. Dynamic Technology Lab Private Ltd bought a new position in shares of Post in the first quarter worth $623,000. Exchange Traded Concepts LLC boosted its holdings in shares of Post by 7.3% in the first quarter. Exchange Traded Concepts LLC now owns 6,922 shares of the company's stock worth $805,000 after acquiring an additional 472 shares during the period. Finally, Vanguard Group Inc. boosted its holdings in shares of Post by 5.4% in the first quarter. Vanguard Group Inc. now owns 5,418,085 shares of the company's stock worth $630,448,000 after acquiring an additional 277,786 shares during the period. 94.85% of the stock is owned by hedge funds and other institutional investors.

Post Company Profile

Post Holdings, Inc operates as a consumer packaged goods holding company in the United States and internationally. It operates through four segments: Post Consumer Brands, Weetabix, Foodservice, and Refrigerated Retail. The Post Consumer Brands segment manufactures, markets, and sells branded and private label ready-to-eat (RTE) cereals under Honey Bunches of Oats, Pebbles, and Malt-O-Meal brand names; hot cereal; peanut butter under the Peter Pan brand; and branded and private label dog and cat food products under Rachael Ray Nutrish, Nature's Recipe, 9Lives, Kibbles 'n Bits and Gravy Train brand names.