Campbell's (NASDAQ:CPB) Shares Cross Above 50 Day Moving Average - Here's What Happened

Key Points

• Campbell’s shares rose 2% and moved above their 50-day moving average of $20.93, trading near $21.00 on volume of nearly 5 million shares.
• Analyst sentiment remains cautious: 12 analysts rate the stock Hold and eight rate it Sell, resulting in a consensus “Reduce” rating and an average price target of $19.88.
• Campbell’s matched quarterly earnings expectations at $0.39 per share, but revenue fell 7.9% year over year. The company also cut its quarterly dividend to $0.25 per share from $0.39, implying a 4.8% annualized yield.

The Campbell's Company (NASDAQ:CPB - Get Free Report) passed above its 50 day moving average during trading on Thursday. The stock has a 50 day moving average of $20.93 and traded as high as $21.01. Campbell's shares last traded at $21.00, with a volume of 4,970,918 shares.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on CPB. Royal Bank Of Canada reduced their price target on Campbell's from $21.00 to $19.00 and set a "sector perform" rating on the stock in a report on Friday, September 4th. Argus upgraded Campbell's to a "hold" rating in a research report on Wednesday, September 30th. Wall Street Zen cut Campbell's from a "hold" rating to a "sell" rating in a research note on Saturday, September 5th. Stifel Nicolaus upped their target price on Campbell's from $20.00 to $22.00 and gave the company a "hold" rating in a report on Wednesday, July 22nd. Finally, Weiss Ratings lowered Campbell's from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Thursday, October 8th. Twelve research analysts have rated the stock with a Hold rating and eight have assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Reduce" and an average price target of $19.88.

Campbell's Trading Up 2.0%

The company has a market cap of $6.26 billion, a P/E ratio of 16.03, a PEG ratio of 2.43 and a beta of 0.06. The stock's 50 day moving average is $20.93 and its 200-day moving average is $22.53. The company has a current ratio of 0.82, a quick ratio of 0.33 and a debt-to-equity ratio of 1.60.

Campbell's (NASDAQ:CPB - Get Free Report) last announced its quarterly earnings data on Thursday, September 3rd. The company reported $0.39 EPS for the quarter, meeting the consensus estimate of $0.39. The company had revenue of $2.14 billion for the quarter. Campbell's had a net margin of 4.04% and a return on equity of 16.44%. The business's revenue for the quarter was down 7.9% compared to the same quarter last year. During the same period last year, the company posted $0.62 earnings per share. Campbell's has set its FY 2027 guidance at 1.650-1.800 EPS. Research analysts anticipate that The Campbell's Company will post 1.70 earnings per share for the current fiscal year.

Campbell's Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, November 2nd. Stockholders of record on Thursday, October 1st will be issued a dividend of $0.25 per share. The ex-dividend date is Thursday, October 1st. This is a negative change from Campbell's's previous quarterly dividend of $0.39. This represents a $1.00 dividend on an annualized basis and a dividend yield of 4.8%. Campbell's's dividend payout ratio is currently 76.34%.

Hedge Funds Weigh In On Campbell's

A number of hedge funds have recently added to or reduced their stakes in CPB. Root Financial Partners LLC purchased a new position in Campbell's in the 3rd quarter worth about $29,000. Comprehensive Financial Planning Inc. PA purchased a new stake in shares of Campbell's during the 2nd quarter valued at about $31,000. Versant Capital Management Inc boosted its holdings in shares of Campbell's by 946.6% during the 2nd quarter. Versant Capital Management Inc now owns 2,470 shares of the company's stock valued at $55,000 after acquiring an additional 2,234 shares during the last quarter. Resona Asset Management Co. Ltd. grew its stake in shares of Campbell's by 39.1% in the first quarter. Resona Asset Management Co. Ltd. now owns 2,699 shares of the company's stock worth $60,000 after acquiring an additional 759 shares during the period. Finally, Parallel Advisors LLC grew its stake in shares of Campbell's by 23.5% in the first quarter. Parallel Advisors LLC now owns 2,792 shares of the company's stock worth $62,000 after acquiring an additional 532 shares during the period. 52.35% of the stock is currently owned by hedge funds and other institutional investors.

Campbell's Company Profile

Campbell's, formerly known as Campbell Soup Company, is a food and beverage company headquartered in Camden, New Jersey. Founded in 1869, the company develops, manufactures and markets branded packaged foods sold primarily through grocery stores, mass retailers, club stores, e-commerce channels and food-service outlets.

Its portfolio includes soups, broths, sauces, pasta meals, snacks and other convenient foods. Key brands include Campbell's, Prego, Swanson, Pepperidge Farm, Goldfish, Snyder's of Hanover, Late July, Cape Cod, Kettle Brand, Michael Angelo's and Rao's.

Campbell's serves consumers primarily in the United States and Canada, with products distributed through a broad retail and food-service network.

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