Campbell's (NASDAQ:CPB) Reaches New 1-Year Low - Should You Sell?

Key Points

• Campbell’s shares hit a new 52-week low of $19.21, trading below both their 50-day and 200-day moving averages. Analysts’ consensus rating is “Reduce,” with an average price target of $19.88.
• The company matched quarterly EPS expectations at $0.39, but revenue fell 7.9% year over year and EPS declined from $0.62 in the prior-year period.
• Campbell’s cut its quarterly dividend to $0.25 from $0.39, reducing the annualized payout to $1.00 and the yield to approximately 5.2%; the payout ratio remains elevated at 76.34%.

Shares of The Campbell's Company (NASDAQ:CPB - Get Free Report) reached a new 52-week low on Thursday. The stock traded as low as $19.21 and last traded at $19.2220, with a volume of 1550580 shares traded. The stock had previously closed at $19.83.

Analyst Ratings Changes

Several equities analysts have recently weighed in on the stock. William Blair began coverage on shares of Campbell's in a report on Tuesday, June 23rd. They set a "market perform" rating on the stock. Stephens set a $20.00 target price on shares of Campbell's in a research note on Friday, August 28th. Sanford C. Bernstein reaffirmed an "underperform" rating and set a $19.00 price target (down from $21.00) on shares of Campbell's in a research report on Tuesday, June 9th. Stifel Nicolaus increased their target price on shares of Campbell's from $20.00 to $22.00 and gave the company a "hold" rating in a research report on Wednesday, July 22nd. Finally, Weiss Ratings raised Campbell's from a "sell (d+)" rating to a "hold (c-)" rating in a report on Monday, August 31st. Thirteen research analysts have rated the stock with a Hold rating and seven have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Reduce" and a consensus price target of $19.88.

Campbell's Price Performance

The firm's 50-day moving average is $22.11 and its 200-day moving average is $21.64. The company has a quick ratio of 0.33, a current ratio of 0.82 and a debt-to-equity ratio of 1.60. The company has a market capitalization of $5.74 billion, a PE ratio of 14.70, a price-to-earnings-growth ratio of 2.38 and a beta of 0.03.

Campbell's (NASDAQ:CPB - Get Free Report) last announced its quarterly earnings data on Thursday, September 3rd. The company reported $0.39 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.39. The company had revenue of $2.14 billion during the quarter. Campbell's had a net margin of 4.04% and a return on equity of 16.44%. Campbell's's revenue for the quarter was down 7.9% on a year-over-year basis. During the same period last year, the company posted $0.62 EPS. Campbell's has set its FY 2027 guidance at 1.650-1.800 EPS. Equities analysts predict 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. Stockholders of record on Thursday, October 1st will be given a $0.25 dividend. The ex-dividend date of this dividend is Thursday, October 1st. This represents a $1.00 annualized dividend and a dividend yield of 5.2%. This is a decrease from Campbell's's previous quarterly dividend of $0.39. Campbell's's dividend payout ratio is currently 76.34%.

Institutional Investors Weigh In On Campbell's

Several hedge funds have recently bought and sold shares of the business. Dimensional Fund Advisors LP boosted its position in shares of Campbell's by 23.3% during the first quarter. Dimensional Fund Advisors LP now owns 10,239,231 shares of the company's stock valued at $228,026,000 after buying an additional 1,933,814 shares during the last quarter. Bank of New York Mellon Corp purchased a new stake in shares of Campbell's during the 2nd quarter valued at about $79,090,000. First Trust Advisors LP grew its stake in shares of Campbell's by 35.0% in the first quarter. First Trust Advisors LP now owns 2,820,793 shares of the company's stock worth $62,819,000 after acquiring an additional 731,393 shares during the period. Lazard Asset Management LLC purchased a new position in shares of Campbell's during the first quarter valued at approximately $61,261,000. Finally, Cerity Partners LLC raised its holdings in shares of Campbell's by 190.3% during the fourth quarter. Cerity Partners LLC now owns 2,680,839 shares of the company's stock valued at $74,715,000 after purchasing an additional 1,757,264 shares during the last quarter. Institutional investors own 52.35% of the company's stock.

About Campbell's

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.