Post (NYSE:POST) Share Price Passes Below Fifty Day Moving Average - Time to Sell?

Key Points

• Post Holdings shares fell below the 50-day moving average, trading as low as $94.32 versus a 50-day average of $100.36, which could signal weaker near-term momentum. The stock last traded around $97.11.
• The company’s latest quarterly results were mixed: EPS beat expectations at $1.94 versus $1.73, but revenue of $2.04 billion came in slightly below estimates. Revenue still grew 4.7% year over year.
• Analysts remain generally constructive, with a consensus Moderate Buy rating and a $124.50 price target, even as some firms have trimmed targets recently. A recent insider sale by a director may also be weighing on sentiment.

Shares of Post Holdings, Inc. (NYSE:POST - Get Free Report) crossed below its 50 day moving average during trading on Thursday . The stock has a 50 day moving average of $100.36 and traded as low as $94.32. Post shares last traded at $97.1120, with a volume of 757,302 shares trading hands.

Key Stories Impacting Post

Here are the key news stories impacting Post this week:

• Positive Sentiment: Investors are still digesting Post’s most recent quarterly results, where the company beat EPS expectations and delivered 4.7% revenue growth year over year, showing that core business performance remains solid.
• Neutral Sentiment: A recent Seeking Alpha article argued that Post Holdings’ share buybacks could add value over time, but this is more of an investment thesis than a fresh operational catalyst. Article Title
• Neutral Sentiment: Post Holdings has not announced any new major business updates in the provided articles, so the stock appears to be trading more on broader market sentiment and post-earnings digestion than on fresh company news.
• Negative Sentiment: The company’s latest revenue came in slightly below analyst expectations, which may still be pressuring the shares despite the EPS beat.

Analyst Upgrades and Downgrades

POST has been the subject of a number of analyst reports. Weiss Ratings upgraded Post from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Friday, February 6th. Barclays cut their price target on Post from $127.00 to $119.00 and set an "overweight" rating for the company in a research note on Tuesday, April 14th. JPMorgan Chase & Co. cut their price target on Post from $133.00 to $119.00 and set an "overweight" rating for the company in a research note on Monday, April 20th. BTIG Research initiated coverage on Post in a research note on Monday, April 13th. They set a "neutral" rating for the company. Finally, Zacks Research upgraded Post from a "strong sell" rating to a "hold" rating in a research note on Monday, February 9th. Five equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. According to MarketBeat.com, Post has a consensus rating of "Moderate Buy" and a consensus price target of $124.50.

Post Price Performance

The company has a current ratio of 1.85, a quick ratio of 1.03 and a debt-to-equity ratio of 2.38. The company has a market cap of $4.40 billion, a P/E ratio of 16.35 and a beta of 0.43. The business's fifty day moving average is $100.36 and its 200 day moving average is $101.84.

Post (NYSE:POST - Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The company reported $1.94 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.73 by $0.21. The company had revenue of $2.04 billion during the quarter, compared to analyst estimates of $2.08 billion. Post had a return on equity of 13.36% and a net margin of 4.01%.The firm's quarterly revenue was up 4.7% on a year-over-year basis. During the same quarter last year, the company earned $1.41 earnings per share. As a group, sell-side analysts anticipate that Post Holdings, Inc. will post 7.58 EPS for the current year.

Insider Transactions at Post

In related news, Director Gregory L. Curl sold 6,186 shares of Post stock in a transaction on Wednesday, May 13th. The stock was sold at an average price of $105.05, for a total transaction of $649,839.30. Following the completion of the sale, the director owned 15,107 shares of the company's stock, valued at approximately $1,586,990.35. This trade represents a 29.05% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 14.05% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Larson Financial Group LLC grew its position in Post by 62.8% in the fourth quarter. Larson Financial Group LLC now owns 267 shares of the company's stock worth $26,000 after acquiring an additional 103 shares in the last quarter. Argonautica Private Wealth Management Inc. grew its position in Post by 4.4% in the fourth quarter. Argonautica Private Wealth Management Inc. now owns 2,603 shares of the company's stock worth $258,000 after acquiring an additional 109 shares in the last quarter. Millstone Evans Group LLC grew its position in Post by 50.0% in the third quarter. Millstone Evans Group LLC now owns 375 shares of the company's stock worth $40,000 after acquiring an additional 125 shares in the last quarter. Northwestern Mutual Wealth Management Co. grew its position in Post by 119.5% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 248 shares of the company's stock worth $27,000 after acquiring an additional 135 shares in the last quarter. Finally, Aviso Financial Inc. grew its position in Post by 1.4% in the third quarter. Aviso Financial Inc. now owns 10,020 shares of the company's stock worth $1,077,000 after acquiring an additional 140 shares in the last quarter. 94.85% of the stock is currently owned by hedge funds and other institutional investors.

About Post

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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