Andersons (NASDAQ:ANDE) Stock Price Down 10% - Here's What Happened

Key Points

• Andersons shares fell 10% to about $56.38 in Wednesday trading, despite reporting third-quarter adjusted EPS of $1.38, above the $1.11 consensus estimate.
• Revenue rose 5.8% year over year to $2.83 billion but missed analysts’ $2.97 billion forecast, tempering the earnings beat.
• The company agreed to acquire Harvestone Low Carbon Partners for $915 million, adding roughly 215 million gallons of annual ethanol capacity; management expects the deal to boost EPS and cash flow, though its price and reliance on expected tax credits could concern investors.

The Andersons, Inc. (NASDAQ:ANDE - Get Free Report) shares were down 10% during trading on Wednesday. The stock traded as low as $56.79 and last traded at $56.3840. 33,442 shares traded hands during mid-day trading, a decline of 90% from the average session volume of 337,436 shares. The stock had previously closed at $62.67.

Key Stories Impacting Andersons

Here are the key news stories impacting Andersons this week:

• Positive Sentiment: Third-quarter adjusted EPS was $1.38, beating the $1.11 consensus estimate, while revenue rose 5.8% year over year. The company also reported record quarterly net income, with Renewables delivering record pretax income of $63 million. Third-quarter results
• Positive Sentiment: The Andersons agreed to acquire Harvestone Low Carbon Partners for $915 million, adding about 215 million gallons of annual ethanol capacity and expanding its Renewables platform by more than 40%. Management expects the acquisition to be immediately accretive to earnings per share and cash flow. Acquisition announcement
• Negative Sentiment: Quarterly revenue of $2.83 billion fell short of analysts’ $2.97 billion expectation, tempering the earnings beat. Third-quarter results
• Negative Sentiment: The acquisition’s substantial cost may raise investor concerns about execution and the value assigned to expected incentives: approximately half the purchase price is attributed to anticipated 45Z and 45Q tax-credit cash flows. Acquisition announcement

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on ANDE shares. Weiss Ratings upgraded shares of Andersons from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday, October 8th. Deutsche Bank Aktiengesellschaft set a $110.00 target price on Andersons in a report on Tuesday, August 4th. Wall Street Zen raised Andersons from a "buy" rating to a "strong-buy" rating in a report on Saturday, October 17th. Finally, BMO Capital Markets upped their price objective on Andersons from $75.00 to $90.00 and gave the stock an "outperform" rating in a research note on Wednesday, August 5th. One equities research analyst has rated the stock with a Strong Buy rating and four have given a Buy rating to the company's stock. Based on data from MarketBeat.com, Andersons has an average rating of "Buy" and a consensus target price of $95.00.

Andersons Stock Down 12.9%

The company has a current ratio of 1.51, a quick ratio of 0.81 and a debt-to-equity ratio of 0.42. The stock has a 50-day simple moving average of $66.85 and a 200-day simple moving average of $69.08. The company has a market cap of $1.86 billion, a price-to-earnings ratio of 10.56 and a beta of 0.63.

Andersons (NASDAQ:ANDE - Get Free Report) last issued its quarterly earnings results on Tuesday, November 3rd. The basic materials company reported $1.38 EPS for the quarter, beating analysts' consensus estimates of $1.11 by $0.27. Andersons had a return on equity of 16.23% and a net margin of 1.62%. The company had revenue of $2.83 billion for the quarter, compared to analyst estimates of $2.97 billion. During the same period last year, the company earned $0.59 earnings per share. The company's quarterly revenue was up 5.8% compared to the same quarter last year.

Andersons Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, October 22nd. Shareholders of record on Thursday, October 1st were paid a dividend of $0.20 per share. The ex-dividend date of this dividend was Thursday, October 1st. This represents a $0.80 annualized dividend and a yield of 1.5%. Andersons's dividend payout ratio (DPR) is presently 15.44%.

Institutional Trading of Andersons

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Allspring Global Investments Holdings LLC lifted its holdings in shares of Andersons by 23.1% in the third quarter. Allspring Global Investments Holdings LLC now owns 24,704 shares of the basic materials company's stock valued at $1,618,000 after purchasing an additional 4,630 shares in the last quarter. Parallel Advisors LLC increased its position in Andersons by 1,326.8% during the third quarter. Parallel Advisors LLC now owns 1,598 shares of the basic materials company's stock worth $105,000 after acquiring an additional 1,486 shares during the period. ProShare Advisors LLC increased its position in Andersons by 27.3% during the third quarter. ProShare Advisors LLC now owns 126,268 shares of the basic materials company's stock worth $8,296,000 after acquiring an additional 27,111 shares during the period. State of Wyoming increased its position in Andersons by 27.9% during the third quarter. State of Wyoming now owns 4,108 shares of the basic materials company's stock worth $270,000 after acquiring an additional 896 shares during the period. Finally, Fifth Third Wealth Advisors LLC acquired a new position in Andersons during the 3rd quarter valued at $469,000. Institutional investors own 87.06% of the company's stock.

About Andersons

The Andersons, Inc NASDAQ: ANDE is an agribusiness company that provides products and services supporting the agricultural supply chain. Founded in 1947 and headquartered in Maumee, Ohio, the company serves farmers, agricultural retailers, manufacturers, and other customers primarily in North America.

The company's Trade segment merchandises and manages the movement and storage of grains and other agricultural commodities. Its operations include grain elevators, commodity trading, logistics, and related services that connect producers with domestic and international markets.

Through its Ethanol segment, The Andersons produces renewable fuels and markets co-products such as distillers grains and corn oil.

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