Campbell's (NASDAQ:CPB) Hits New 12-Month Low - Here's Why

Key Points

• Campbell’s shares fell to a new 52-week low of $18.90, with the stock’s average analyst rating at “Reduce” and a consensus price target of $19.88.
• The company’s latest quarter met EPS expectations at $0.39, but revenue declined 7.9% year over year to $2.14 billion, while EPS fell from $0.62 in the prior-year period.
• Campbell’s cut its quarterly dividend to $0.25 from $0.39, resulting in an annualized dividend of $1.00 and a yield of approximately 5.3%.

The Campbell's Company (NASDAQ:CPB - Get Free Report) shares hit a new 52-week low on Wednesday. The stock traded as low as $18.90 and last traded at $19.00, with a volume of 14196146 shares trading hands. The stock had previously closed at $19.30.

Analysts Set New Price Targets

Several equities analysts have issued reports on CPB shares. Stifel Nicolaus lifted their price target on shares of Campbell's from $20.00 to $22.00 and gave the stock a "hold" rating in a report on Wednesday, July 22nd. Bank of America decreased their price objective on Campbell's from $20.00 to $18.00 and set an "underperform" rating for the company in a report on Tuesday, June 9th. TD Cowen raised their price objective on Campbell's from $20.00 to $22.00 and gave the stock a "hold" rating in a research report on Wednesday, August 19th. JPMorgan Chase & Co. boosted their target price on Campbell's from $20.00 to $22.00 and gave the stock a "neutral" rating in a research note on Tuesday, August 18th. Finally, William Blair initiated coverage on Campbell's in a research report on Tuesday, June 23rd. They set a "market perform" rating on the stock. Thirteen investment analysts have rated the stock with a Hold rating and seven have issued a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Reduce" and a consensus target price of $19.88.

Campbell's Stock Performance

The company has a current ratio of 0.82, a quick ratio of 0.33 and a debt-to-equity ratio of 1.60. The company has a market cap of $5.67 billion, a PE ratio of 14.50, a P/E/G ratio of 2.27 and a beta of 0.06. The firm's 50-day simple moving average is $21.89 and its two-hundred day simple moving average is $21.58.

Campbell's (NASDAQ:CPB - Get Free Report) last posted its quarterly earnings results on Thursday, September 3rd. The company reported $0.39 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $0.39. Campbell's had a net margin of 4.04% and a return on equity of 16.44%. The business had revenue of $2.14 billion during the quarter. During the same period in the prior year, the business posted $0.62 EPS. The company's quarterly revenue was down 7.9% on a year-over-year basis. Campbell's has set its FY 2027 guidance at 1.650-1.800 EPS. As a group, research analysts anticipate that The Campbell's Company will post 1.7 earnings per share for the current fiscal year.

Campbell's Cuts Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, November 2nd. Investors of record on Thursday, October 1st will be paid a $0.25 dividend. This is a negative change from Campbell's's previous quarterly dividend of $0.39. The ex-dividend date is Thursday, October 1st. This represents a $1.00 dividend on an annualized basis and a yield of 5.3%. Campbell's's dividend payout ratio (DPR) is 76.34%.

Institutional Trading of Campbell's

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Juncture Wealth Strategies LLC purchased a new stake in Campbell's during the 3rd quarter valued at about $268,000. Versant Capital Management Inc raised its stake in shares of Campbell's by 57.6% in the third quarter. Versant Capital Management Inc now owns 3,893 shares of the company's stock worth $77,000 after purchasing an additional 1,423 shares during the last quarter. MAC Alpha Capital Management LP raised its stake in shares of Campbell's by 25.4% in the second quarter. MAC Alpha Capital Management LP now owns 284,545 shares of the company's stock worth $6,337,000 after purchasing an additional 57,631 shares during the last quarter. Core Capital Management & Research inc. acquired a new stake in shares of Campbell's during the second quarter worth about $323,000. Finally, Sequoia Financial Advisors LLC acquired a new stake in shares of Campbell's during the second quarter worth about $388,000. Institutional investors and hedge funds own 52.35% of the company's stock.

Campbell's Company Profile

Campbell's, formerly known as Campbell Soup Company, is a packaged food and beverage company headquartered in Camden, New Jersey. Founded in 1869, the company is best known for its soups and has expanded into a broad portfolio of branded meals, sauces, snacks and beverages.

Its meals and beverages portfolio includes Campbell's soups, Swanson broths and stocks, Prego pasta sauces, V8 vegetable beverages, Pace Mexican-style sauces and Rao's sauces and meals. The company also sells snack products through brands such as Goldfish, Pepperidge Farm, Lance, Late July and Snyder's of Hanover.

Campbell's primarily serves consumers in the United States and Canada through grocery stores, mass merchants, club stores, convenience retailers, foodservice distributors and e-commerce channels.

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