Advantage Solutions (NASDAQ:ADV) Shares Up 35.3% - Here's Why

Key Points

• Advantage Solutions shares surged 35.3% to a reported last trade of $39.44, although trading volume was 84% below its average; the article does not identify a specific catalyst for the jump.
• Quarterly revenue of $913.74 million topped estimates, but the company reported a loss of $1.96 per share, substantially worse than analysts’ expected loss of $0.10.
• Analyst sentiment is mixed but averages to Hold, with a consensus price target of $42; the company’s debt-to-equity ratio is 3.77 and it reported negative net margin and return on equity.

Shares of Advantage Solutions Inc. (NASDAQ:ADV - Get Free Report) rose 35.3% during trading on Wednesday. The stock traded as high as $38.41 and last traded at $39.4440. 13,265 shares traded hands during trading, a decline of 84% from the average daily volume of 82,913 shares. The stock had previously closed at $29.15.

Wall Street Analysts Forecast Growth

ADV has been the subject of a number of analyst reports. Morgan Stanley decreased their price objective on shares of Advantage Solutions from $35.00 to $34.00 and set an "equal weight" rating for the company in a research report on Thursday, August 6th. Wall Street Zen lowered Advantage Solutions from a "hold" rating to a "sell" rating in a research note on Saturday, August 8th. Zacks Research raised Advantage Solutions from a "strong sell" rating to a "hold" rating in a report on Monday, October 5th. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of Advantage Solutions in a research report on Friday. One analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Advantage Solutions has an average rating of "Hold" and an average target price of $42.00.

Advantage Solutions Price Performance

The company has a debt-to-equity ratio of 3.77, a current ratio of 1.79 and a quick ratio of 1.79. The stock has a market capitalization of $472.84 million, a price-to-earnings ratio of -1.73 and a beta of 2.21. The stock has a 50 day moving average price of $30.89 and a 200-day moving average price of $30.17.

Advantage Solutions (NASDAQ:ADV - Get Free Report) last announced its quarterly earnings data on Wednesday, November 4th. The company reported ($1.96) earnings per share for the quarter, missing analysts' consensus estimates of ($0.10) by ($1.86). The firm had revenue of $913.74 million during the quarter, compared to analysts' expectations of $899.50 million. Advantage Solutions had a negative net margin of 7.65% and a negative return on equity of 48.15%. On average, analysts forecast that Advantage Solutions Inc. will post 0.24 earnings per share for the current year.

Hedge Funds Weigh In On Advantage Solutions

Several hedge funds and other institutional investors have recently made changes to their positions in ADV. Bank of New York Mellon Corp grew its stake in shares of Advantage Solutions by 7.8% during the second quarter. Bank of New York Mellon Corp now owns 12,187 shares of the company's stock worth $527,000 after purchasing an additional 887 shares in the last quarter. State of Wyoming purchased a new stake in Advantage Solutions during the 3rd quarter worth about $93,000. Squarepoint Ops LLC purchased a new stake in Advantage Solutions during the 2nd quarter worth about $456,000. Finally, State Street Corp purchased a new position in shares of Advantage Solutions in the 2nd quarter valued at about $3,913,000. Hedge funds and other institutional investors own 49.82% of the company's stock.

Advantage Solutions Company Profile

Advantage Solutions Inc is a provider of outsourced sales and marketing services for consumer goods manufacturers, retailers and other brands. The company helps clients improve how their products are presented, promoted and sold across retail, e-commerce and other consumer channels.

Its services include retail merchandising, sales representation, brand marketing, experiential marketing, digital and omnichannel marketing, category management, analytics and business intelligence. Advantage Solutions also provides services designed to support product launches, in-store execution, shopper engagement and connections between brands and consumers.

The company serves clients primarily in the United States and Canada, working across categories such as food and beverage, consumer packaged goods, health and wellness, beauty and household products.

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