Albertsons Companies (NYSE:ACI) Shares Gap Down - Here's Why

Key Points

• Albertsons shares opened sharply lower, falling from a prior close of $12.34 to $11.77 before recovering to about $12.25. The stock trades below its 200-day moving average of $14.32.
• Analyst sentiment is broadly cautious: Albertsons has a consensus “Hold” rating and an average price target of $15.31, while several firms recently cut their targets to between $12 and $16.
• The company missed quarterly EPS expectations, reporting $0.42 versus the $0.54 consensus, despite revenue of $24.94 billion slightly exceeding estimates. Albertsons also pays a $0.17 quarterly dividend, yielding about 5.6%, and insiders recently bought more than $2.5 million of stock.

Albertsons Companies, Inc. (NYSE:ACI - Get Free Report)'s stock price gapped down before the market opened on Friday. The stock had previously closed at $12.34, but opened at $11.77. Albertsons Companies shares last traded at $12.2450, with a volume of 251,001 shares trading hands.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on ACI. UBS Group reiterated a "neutral" rating and issued a $12.00 target price (down from $20.00) on shares of Albertsons Companies in a research note on Tuesday, July 28th. Zacks Research upgraded shares of Albertsons Companies from a "strong sell" rating to a "hold" rating in a research report on Monday, September 21st. Barclays decreased their price target on shares of Albertsons Companies from $17.00 to $12.00 and set an "underweight" rating on the stock in a report on Friday, July 24th. The Goldman Sachs Group dropped their price objective on Albertsons Companies from $24.00 to $16.00 and set a "buy" rating for the company in a research note on Friday, July 24th. Finally, JPMorgan Chase & Co. reduced their target price on Albertsons Companies from $20.00 to $14.00 and set an "overweight" rating for the company in a research report on Friday, July 24th. Five equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat.com, Albertsons Companies presently has a consensus rating of "Hold" and an average price target of $15.31.

Albertsons Companies Price Performance

The company has a market capitalization of $5.94 billion, a PE ratio of 153.06, a price-to-earnings-growth ratio of 2.00 and a beta of 0.40. The company has a quick ratio of 0.21, a current ratio of 0.84 and a debt-to-equity ratio of 5.22. The firm's 50-day moving average is $12.12 and its 200-day moving average is $14.32.

Albertsons Companies (NYSE:ACI - Get Free Report) last released its quarterly earnings results on Thursday, July 23rd. The company reported $0.42 earnings per share for the quarter, missing analysts' consensus estimates of $0.54 by ($0.12). Albertsons Companies had a net margin of 0.08% and a return on equity of 45.59%. The firm had revenue of $24.94 billion for the quarter, compared to analysts' expectations of $24.84 billion. During the same quarter in the previous year, the business earned $0.55 EPS. The company's revenue for the quarter was up .2% on a year-over-year basis. Albertsons Companies has set its FY 2026 guidance at 1.750-1.850 EPS. Equities analysts predict that Albertsons Companies, Inc. will post 1.65 earnings per share for the current fiscal year.

Albertsons Companies Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 7th. Investors of record on Friday, July 24th were issued a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a dividend yield of 5.6%. The ex-dividend date of this dividend was Friday, July 24th. Albertsons Companies's dividend payout ratio (DPR) is currently 850.00%.

Insider Buying and Selling

In other Albertsons Companies news, CFO Sharon Mccollam purchased 9,000 shares of the firm's stock in a transaction on Friday, July 31st. The shares were purchased at an average cost of $11.48 per share, with a total value of $103,320.00. Following the completion of the purchase, the chief financial officer owned 567,051 shares of the company's stock, valued at $6,509,745.48. The trade was a 1.61% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, EVP Thomas M. Moriarty acquired 170,500 shares of the stock in a transaction dated Monday, July 27th. The stock was acquired at an average price of $11.51 per share, with a total value of $1,962,455.00. Following the completion of the acquisition, the executive vice president owned 308,946 shares in the company, valued at approximately $3,555,968.46. The trade was a 123.15% increase in their position. The SEC filing for this purchase provides additional information. Insiders bought 218,909 shares of company stock worth $2,515,826 in the last quarter. 1.18% of the stock is owned by insiders.

Institutional Investors Weigh In On Albertsons Companies

Institutional investors have recently made changes to their positions in the business. GAMMA Investing LLC raised its position in Albertsons Companies by 126.3% in the 3rd quarter. GAMMA Investing LLC now owns 23,155 shares of the company's stock worth $269,000 after purchasing an additional 12,922 shares during the period. Farther Finance Advisors LLC boosted its position in Albertsons Companies by 57.2% during the third quarter. Farther Finance Advisors LLC now owns 14,383 shares of the company's stock valued at $167,000 after buying an additional 5,235 shares during the period. Tidal Investments LLC boosted its position in Albertsons Companies by 279.5% during the second quarter. Tidal Investments LLC now owns 57,049 shares of the company's stock valued at $772,000 after buying an additional 42,015 shares during the period. WINTON GROUP Ltd bought a new position in shares of Albertsons Companies during the second quarter valued at about $3,910,000. Finally, Engineers Gate Manager LP grew its stake in shares of Albertsons Companies by 47.0% during the second quarter. Engineers Gate Manager LP now owns 627,998 shares of the company's stock valued at $8,497,000 after buying an additional 200,776 shares during the last quarter. Hedge funds and other institutional investors own 71.35% of the company's stock.

Albertsons Companies Company Profile

Albertsons Companies, Inc is a U.S. food and drug retailer headquartered in Boise, Idaho. The company operates supermarkets, pharmacies and related retail businesses under banners including Albertsons, Safeway, Vons, Jewel-Osco, Shaw's, ACME, Tom Thumb, Randalls, United Supermarkets, Pavilions, Carrs and Haggen.

Its stores offer groceries, fresh produce, meat and seafood, bakery and deli items, household products, health and beauty products, and pharmacy services. Albertsons also provides private-label products, fuel at select locations, grocery delivery and pickup, digital shopping tools, and customer loyalty programs.

The company's history traces to 1939, when Joe Albertson opened the first Albertsons store in Boise.

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