Post (NYSE:POST) Price Target Cut to $119.00 by Analysts at JPMorgan Chase & Co.

Key Points

• JPMorgan cut its price target on Post from $133 to $119 but kept an "overweight" rating, implying about a 15.5% upside from the current share price.
• Other analysts have also trimmed targets (Barclays to $119, Wells Fargo to $110); MarketBeat's average target is $124.50 and the consensus rating is "Moderate Buy" (five Buys, four Holds).
• Post beat quarterly EPS estimates ($2.13 vs. $1.66) with revenue up 10.2% year-over-year and trades around $103 (market cap ~$4.9B), but faces potential margin pressure from rising commodity and shipping costs and saw an insider sell shares.

Post (NYSE:POST - Get Free Report) had its price target reduced by equities researchers at JPMorgan Chase & Co. from $133.00 to $119.00 in a note issued to investors on Monday,Benzinga reports. The brokerage currently has an "overweight" rating on the stock. JPMorgan Chase & Co.'s price objective points to a potential upside of 15.53% from the company's current price.

Several other equities research analysts have also commented on POST. Weiss Ratings raised shares of Post from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Friday, February 6th. BTIG Research assumed coverage on shares of Post in a research report on Monday, April 13th. They set a "neutral" rating on the stock. Zacks Research upgraded shares of Post from a "strong sell" rating to a "hold" rating in a research report on Monday, February 9th. Barclays decreased their price target on shares of Post from $127.00 to $119.00 and set an "overweight" rating on the stock in a research report on Tuesday, April 14th. Finally, Wells Fargo & Company reduced their price objective on shares of Post from $120.00 to $110.00 and set an "equal weight" rating for the company in a research note on Wednesday, April 8th. Five investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $124.50.

Post Stock Performance

POST traded up $1.41 on Monday, hitting $103.00. The company's stock had a trading volume of 236,083 shares, compared to its average volume of 801,761. The company's 50 day simple moving average is $102.65 and its 200-day simple moving average is $102.48. The firm has a market cap of $4.93 billion, a P/E ratio of 19.04 and a beta of 0.44. Post has a 12 month low of $94.13 and a 12 month high of $117.28. The company has a quick ratio of 1.02, a current ratio of 1.90 and a debt-to-equity ratio of 2.15.

Post (NYSE:POST - Get Free Report) last issued its quarterly earnings results on Thursday, February 5th. The company reported $2.13 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.66 by $0.47. Post had a return on equity of 12.37% and a net margin of 3.82%.The firm had revenue of $2.17 billion during the quarter, compared to the consensus estimate of $2.18 billion. During the same quarter last year, the company posted $1.73 EPS. The company's revenue for the quarter was up 10.2% on a year-over-year basis. Analysts forecast that Post will post 6.41 EPS for the current year.

Insiders Place Their Bets

In related news, Director Gregory L. Curl sold 6,983 shares of the firm's stock in a transaction on Monday, February 9th. The shares were sold at an average price of $114.31, for a total transaction of $798,226.73. Following the completion of the transaction, the director directly owned 21,293 shares of the company's stock, valued at approximately $2,434,002.83. This trade represents a 24.70% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 14.05% of the company's stock.

Hedge Funds Weigh In On Post

Institutional investors have recently bought and sold shares of the stock. Caitong International Asset Management Co. Ltd purchased a new position in Post during the third quarter valued at $26,000. Northwestern Mutual Wealth Management Co. grew its stake in shares of Post by 119.5% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 248 shares of the company's stock worth $27,000 after buying an additional 135 shares in the last quarter. Larson Financial Group LLC grew its stake in shares of Post by 62.8% in the 4th quarter. Larson Financial Group LLC now owns 267 shares of the company's stock worth $26,000 after buying an additional 103 shares in the last quarter. Highlander Partners L.P. purchased a new position in shares of Post in the 4th quarter worth $33,000. Finally, Millstone Evans Group LLC grew its stake in shares of Post by 50.0% in the 3rd quarter. Millstone Evans Group LLC now owns 375 shares of the company's stock worth $40,000 after buying an additional 125 shares in the last quarter. 94.85% of the stock is owned by hedge funds and other institutional investors.

Post News Roundup

Here are the key news stories impacting Post this week:

• Positive Sentiment: Analyst/retail coverage: The Motley Fool included Post Holdings among “cheap, resilient” consumer-brand stocks to consider in a rocky market, highlighting steady demand for everyday food brands. That kind of retail/investor attention can support buying interest in POST. $1,000 and a Rocky Market: These 6 Cheap Stocks
• Neutral Sentiment: Macro consumer backdrop: A Financial Post piece on Canada’s housing downturn (headline: “Posthaste: Canada’s home prices...”) signals softer consumer conditions in at least one key North American market; this is a macro watch-item rather than direct company news. It could weigh on discretionary grocery spending over time but isn’t an immediate company-specific catalyst. Posthaste: Canada's home prices have now been falling for four years — and haven't hit bottom yet
• Negative Sentiment: Commodity/logistics cost pressure: Reports that oil prices jumped after the U.S. seized an Iranian vessel (heightened Middle East tensions) can raise fuel, freight and packaging (petrochemical) costs for food manufacturers like Post, squeezing margins if costs aren’t passed to consumers. Investors often mark down consumer staples on sudden input-cost shocks. Oil prices jump after U.S. seizes Iranian vessel, imperiling ceasefire
• Negative Sentiment: Shipping lane risk: Coverage that the Strait of Hormuz faced renewed closures and attacks raises the risk of broader shipping slowdowns or higher freight rates — another potential margin headwind for packaged-food companies with global supply chains. Strait of Hormuz blocked as gaps remain on Iran peace talks

Post Company Profile

Post Holdings, Inc is a consumer packaged goods company that operates as a holding company for a diverse portfolio of food and beverage brands. The company's principal activities include the production, marketing and distribution of ready-to-eat cereal, refrigerated and frozen foods, and nutritional beverages. Through its operating segments—Post Consumer Brands, Foodservice, Refrigerated Side Dishes & Bakery, and Active Nutrition—Post Holdings delivers a broad array of products to retail grocers, convenience stores, foodservice operators and e-commerce channels.

The Post Consumer Brands segment features a variety of hot and cold cereals under names such as Honey Bunches of Oats, Shredded Wheat and Pebbles.

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