BBB Foods (NYSE:TBBB) Sets New 52-Week High - Time to Buy?

Key Points

• BBB Foods reached a new 52-week high of $54.00, up 2.7%, giving the company a market capitalization of approximately $6.41 billion.
• Analyst sentiment is generally positive, with a consensus “Moderate Buy” rating and an average price target of $50.50; JPMorgan and Scotiabank set higher targets of $67 and $65, respectively.
• The company exceeded revenue expectations with $1.49 billion in quarterly sales but missed its EPS estimate, reporting a loss of $0.19 per share; BBB Foods continues to post negative margins and return on equity.

Shares of BBB Foods Inc. (NYSE:TBBB - Get Free Report) hit a new 52-week high during mid-day trading on Monday. The stock traded as high as $54.00 and last traded at $53.9380, with a volume of 249000 shares trading hands. The stock had previously closed at $52.65.

Wall Street Analysts Forecast Growth

Several analysts recently commented on the company. JPMorgan Chase & Co. raised their target price on BBB Foods from $48.00 to $67.00 and gave the stock an "overweight" rating in a report on Thursday, September 10th. Scotiabank reissued an "outperform" rating and issued a $65.00 price target on shares of BBB Foods in a report on Thursday, August 27th. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of BBB Foods in a research note on Monday, September 21st. Citigroup reaffirmed a "buy" rating on shares of BBB Foods in a report on Monday, September 14th. Finally, Zacks Research upgraded shares of BBB Foods from a "strong sell" rating to a "hold" rating in a research note on Monday, July 13th. Seven analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $50.50.

BBB Foods Stock Up 2.7%

The company has a market cap of $6.41 billion, a price-to-earnings ratio of -33.51 and a beta of 0.02. The company has a current ratio of 0.68, a quick ratio of 0.44 and a debt-to-equity ratio of 2.16. The business has a fifty day moving average of $48.18 and a two-hundred day moving average of $41.75.

BBB Foods (NYSE:TBBB - Get Free Report) last issued its quarterly earnings data on Wednesday, August 12th. The company reported ($0.19) EPS for the quarter, missing the consensus estimate of ($0.16) by ($0.03). The business had revenue of $1.49 billion during 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%. As a group, equities analysts anticipate that BBB Foods Inc. will post -0.62 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Sapire Rose Nicole Domin Reich sold 7,623 shares of the business's stock in a transaction on Wednesday, September 9th. The shares were sold at an average price of $51.00, for a total value of $388,773.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink.

Institutional Trading of BBB Foods

Institutional investors have recently modified their holdings of the stock. Envestnet Asset Management Inc. increased its stake in shares of BBB Foods by 28.7% during the second quarter. Envestnet Asset Management Inc. now owns 38,171 shares of the company's stock worth $1,591,000 after purchasing an additional 8,506 shares in the last quarter. The Manufacturers Life Insurance Company purchased a new position in BBB Foods in the 2nd quarter valued at about $10,630,000. Cidel Asset Management Inc. purchased a new position in BBB Foods in the 2nd quarter valued at about $4,931,000. Squarepoint Ops LLC boosted its holdings in BBB Foods by 293.9% in the 2nd quarter. Squarepoint Ops LLC now owns 60,342 shares of the company's stock worth $2,514,000 after buying an additional 45,024 shares during the last quarter. Finally, Carmignac Gestion boosted its holdings in BBB Foods by 526.5% in the 2nd quarter. Carmignac Gestion now owns 670,106 shares of the company's stock worth $27,917,000 after buying an additional 563,141 shares during the last quarter. Institutional investors and hedge funds own 8.42% of the company's stock.

About BBB Foods

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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