BBB Foods (NYSE:TBBB) Hits New 12-Month High - What's Next?

Key Points

• BBB Foods shares reached a new 52-week high, trading as high as $57.81 and recently changing hands near $58.85, giving the company a market capitalization of approximately $6.95 billion.
• Analyst sentiment is generally positive: seven analysts rate the stock Buy and three rate it Hold, producing a consensus “Moderate Buy” rating. Price targets range from $58 at UBS to $65 at Scotiabank, although the average target of $50.50 is below the current share price.
• The company exceeded quarterly revenue expectations with $1.49 billion in sales but reported an adjusted loss of $0.19 per share versus the expected $0.16 loss. BBB Foods remains unprofitable, with a negative net margin of 3.68% and projected full-year EPS of -$0.62.

BBB Foods Inc. (NYSE:TBBB - Get Free Report)'s share price hit a new 52-week high during mid-day trading on Monday. The company traded as high as $57.81 and last traded at $58.8470, with a volume of 864,153 shares trading hands. The stock had previously closed at $57.68.

Wall Street Analysts Forecast Growth

Several research firms have recently commented on TBBB. Weiss Ratings upgraded shares of BBB Foods from a "sell (d+)" rating to a "hold (c)" rating in a research note on Thursday, October 8th. UBS Group boosted their price objective on shares of BBB Foods from $51.00 to $58.00 and gave the company a "buy" rating in a report on Friday, August 28th. Citigroup restated a "buy" rating on shares of BBB Foods in a research note on Monday, September 14th. Zacks Research upgraded BBB Foods from a "strong sell" rating to a "hold" rating in a research note on Monday, July 13th. Finally, Scotiabank reaffirmed an "outperform" rating and set a $65.00 price target on shares of BBB Foods in a research report on Thursday, August 27th. Seven analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, BBB Foods currently has a consensus rating of "Moderate Buy" and an average price target of $50.50.

BBB Foods Price Performance

The company has a quick ratio of 0.44, a current ratio of 0.68 and a debt-to-equity ratio of 2.16. The stock's 50 day moving average price is $51.05 and its two-hundred day moving average price is $43.26. The stock has a market cap of $6.95 billion, a price-to-earnings ratio of -36.29 and a beta of 0.02.

BBB Foods (NYSE:TBBB - Get Free Report) last posted its earnings results on Wednesday, August 12th. The company reported ($0.19) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.16) by ($0.03). The business had revenue of $1.49 billion for the quarter, compared to analyst estimates of $1.42 billion. BBB Foods had a negative net margin of 3.68% and a negative return on equity of 72.47%. Equities research analysts forecast that BBB Foods Inc. will post -0.62 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director Sapire Rose Nicole Domin Reich sold 7,623 shares of BBB Foods stock in a transaction that occurred on Wednesday, September 9th. The stock was sold at an average price of $51.00, for a total transaction of $388,773.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link.

Institutional Investors Weigh In On BBB Foods

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Farther Finance Advisors LLC acquired a new stake in shares of BBB Foods during the 3rd quarter valued at about $27,000. GAMMA Investing LLC purchased a new position in shares of BBB Foods in the 3rd quarter valued at about $43,000. Royal Bank of Canada increased its stake in shares of BBB Foods by 19.6% in the 1st quarter. Royal Bank of Canada now owns 11,415 shares of the company's stock valued at $404,000 after purchasing an additional 1,874 shares in the last quarter. VELA Investment Management LLC raised its holdings in BBB Foods by 6.4% in the 2nd quarter. VELA Investment Management LLC now owns 41,600 shares of the company's stock worth $1,733,000 after purchasing an additional 2,500 shares during the period. Finally, Caitong International Asset Management Co. Ltd acquired a new position in BBB Foods in the 4th quarter worth about $89,000. Institutional investors and hedge funds own 8.42% of the company's stock.

BBB Foods Company Profile

BBB Foods Inc operates Tiendas 3B, a hard-discount grocery retail chain in Mexico. The company serves value-conscious consumers through small-format neighborhood stores focused on convenient locations, a streamlined shopping experience and everyday low prices.

Tiendas 3B stores offer a selection of essential grocery and household products, including packaged foods, beverages, personal-care items, cleaning supplies and other daily necessities. The assortment combines private-label merchandise with branded products, and certain locations also carry fresh or perishable goods.

BBB Foods was established to develop the hard-discount retail model in Mexico and has expanded its store network across the country, primarily in urban and suburban communities.

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