Campbell's (NASDAQ:CPB) Shares Gap Down - Should You Sell?

Key Points

• Campbell’s shares fell sharply, opening at $22.32 after previously closing at $23.78, amid disappointing quarterly results and a cautious outlook.
• Fourth-quarter revenue declined 7.9% to $2.14 billion and adjusted EPS dropped to $0.39 from $0.62 year over year, while management forecast fiscal 2027 sales to fall 2%–4% and EPS of $1.65–$1.80.
• The company cut its quarterly dividend to $0.25 from $0.39 to preserve cash for debt reduction. Analysts remain cautious, assigning a consensus “Reduce” rating and an average price target of $20.44.

The Campbell's Company (NASDAQ:CPB - Get Free Report) gapped down prior to trading on Thursday . The stock had previously closed at $23.78, but opened at $22.32. Campbell's shares last traded at $21.5880, with a volume of 8,700,171 shares.

Key Stories Impacting Campbell's

Here are the key news stories impacting Campbell's this week:

• Positive Sentiment: Management said it is taking cost-cutting and balance-sheet measures to address unacceptable performance. Reducing the dividend to $0.25 per share from $0.39 should preserve cash for debt reduction, although the move is unfavorable for income-focused investors. Campbell's Slashes Dividend and Looks to Cut Costs
• Positive Sentiment: Director Dorrance Bennett Jr. purchased 300 CPB shares during the past six months, providing a modest insider-confidence signal. However, the purchases were relatively small compared with the company’s market value.
• Neutral Sentiment: Campbell’s completed its acquisition of La Regina during the quarter, expanding its food portfolio, but the near-term financial contribution does not offset the broader earnings pressure. Campbell's Reports Fourth Quarter Fiscal 2026 Results
• Neutral Sentiment: Institutional trading was mixed: 381 investors added CPB shares while 334 reduced positions in the latest quarter. Analyst sentiment remains cautious, with a recent Bank of America Underperform rating and reported price targets clustering around $20 or below.
• Negative Sentiment: Fourth-quarter sales fell about 8% to $2.1 billion, while adjusted EPS dropped 37% year over year to $0.39 from $0.62. Results were hurt by weaker volumes and product mix, inflation, tariff-related supply-chain costs, and an impairment involving the Cape Cod and Kettle Brand trademarks. Campbell's Lags Q4 Earnings and Revenue Estimates
• Negative Sentiment: Campbell’s forecast fiscal 2027 sales to decline 2% to 4% and adjusted EPS to range from $1.65 to $1.80, signaling another difficult year amid weak consumer spending and continued softness in snacks demand. Campbell's Forecasts Annual Sales and Profit Below Estimates
• Negative Sentiment: The combination of lower profitability, a quarterly loss on a reported basis, a reduced dividend, and the need for debt reduction suggests investors expect persistent pressure on cash flow and shareholder returns.

Analysts Set New Price Targets

A number of brokerages have commented on CPB. Evercore set a $22.00 price objective on shares of Campbell's in a report on Monday. Stifel Nicolaus boosted their price target on Campbell's from $20.00 to $22.00 and gave the stock a "hold" rating in a research note on Wednesday, July 22nd. Barclays dropped their price objective on Campbell's from $21.00 to $19.00 and set an "underweight" rating on the stock in a report on Monday, June 8th. UBS Group increased their target price on Campbell's from $17.00 to $18.00 and gave the company a "sell" rating in a research note on Thursday, August 20th. Finally, Royal Bank Of Canada restated a "sector perform" rating and issued a $21.00 price target on shares of Campbell's in a research note on Monday. Thirteen equities research analysts have rated the stock with a Hold rating and six have given a Sell rating to the company's stock. According to MarketBeat.com, Campbell's presently has a consensus rating of "Reduce" and an average price target of $20.44.

Campbell's Stock Performance

The company has a current ratio of 0.87, a quick ratio of 0.38 and a debt-to-equity ratio of 1.53. The company's 50-day moving average is $22.76 and its two-hundred day moving average is $22.41. The stock has a market capitalization of $6.34 billion, a P/E ratio of 10.52, a P/E/G ratio of 2.41 and a beta of 0.03.

Campbell's (NASDAQ:CPB - Get Free Report) last released its quarterly earnings results on Thursday, September 3rd. The company reported $0.39 earnings per share for the quarter, meeting analysts' consensus estimates of $0.39. Campbell's had a return on equity of 18.04% and a net margin of 6.12%.The company had revenue of $2.14 billion for the quarter. During the same period last year, the firm posted $0.62 EPS. The business's quarterly revenue was down 7.9% on a year-over-year basis. As a group, sell-side analysts anticipate that The Campbell's Company will post 2.18 EPS for the current fiscal year.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. Corient Private Wealth LP grew its position in Campbell's by 271.0% in the 2nd quarter. Corient Private Wealth LP now owns 103,027 shares of the company's stock valued at $2,294,000 after buying an additional 75,257 shares in the last quarter. HighTower Advisors LLC increased its stake in shares of Campbell's by 14.8% during the second quarter. HighTower Advisors LLC now owns 114,907 shares of the company's stock valued at $2,559,000 after acquiring an additional 14,799 shares during the period. California State Teachers Retirement System raised its holdings in Campbell's by 2,093.8% during the second quarter. California State Teachers Retirement System now owns 4,981,665 shares of the company's stock worth $110,942,000 after purchasing an additional 4,754,582 shares in the last quarter. Wedmont Private Capital acquired a new stake in Campbell's in the second quarter worth approximately $465,000. Finally, HB Wealth Management LLC bought a new position in Campbell's during the 2nd quarter valued at $900,000. 52.35% of the stock is owned by institutional investors and hedge funds.

Campbell's Company Profile

Campbell's NASDAQ: CPB is a leading manufacturer of shelf-stable foods and beverages, best known for its iconic soups and broths. Headquartered in Camden, New Jersey, the company offers a diverse portfolio of products designed to meet consumer demand for convenient, affordable meals and snacks. Since its founding in 1869, Campbell's has grown through a combination of organic innovation and strategic acquisitions to expand its presence in the food industry.

The company's brand portfolio includes Campbell's Condensed Soups, V8 juices, Prego pasta sauces, Swanson broths and stocks, Pace salsas and dips, and Pepperidge Farm baked snacks.

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.

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