Flowers Foods (NYSE:FLO) Reaches New 12-Month Low - Here's Why

Key Points

• Flowers Foods shares hit a new 52-week low of $6.76, below the previous close of $6.92, after the company reported weaker-than-expected quarterly results.
• Analysts remain cautious, with a consensus “Reduce” rating and a $7.60 target price. Stephens cut its target to $6, while the company’s quarterly revenue fell 4% year over year and EPS missed estimates.
• The company declared a quarterly dividend of $0.125, equivalent to a 7.5% annualized yield, but its payout ratio is elevated at 192.31%, raising questions about dividend sustainability.

Flowers Foods, Inc. (NYSE:FLO - Get Free Report) shares reached a new 52-week low during mid-day trading on Tuesday . The stock traded as low as $6.76 and last traded at $6.7850, with a volume of 1889707 shares. The stock had previously closed at $6.92.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on FLO. Weiss Ratings upgraded Flowers Foods from a "sell (d)" rating to a "sell (d+)" rating in a report on Thursday. Stephens lowered their price target on Flowers Foods from $8.00 to $6.00 and set an "equal weight" rating on the stock in a report on Monday, August 24th. Zacks Research raised shares of Flowers Foods from a "strong sell" rating to a "hold" rating in a research report on Thursday, May 21st. Finally, Jefferies Financial Group set a $7.00 price objective on shares of Flowers Foods in a research note on Monday, August 3rd. Four analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat, Flowers Foods currently has a consensus rating of "Reduce" and a consensus target price of $7.60.

Flowers Foods Price Performance

The company has a current ratio of 0.77, a quick ratio of 0.57 and a debt-to-equity ratio of 0.97. The stock has a fifty day simple moving average of $7.72 and a 200-day simple moving average of $8.21. The stock has a market cap of $1.41 billion, a price-to-earnings ratio of 25.65 and a beta of 0.40.

Flowers Foods (NYSE:FLO - Get Free Report) last issued its quarterly earnings results on Thursday, August 20th. The company reported $0.21 EPS for the quarter, missing analysts' consensus estimates of $0.22 by ($0.01). The business had revenue of $1.19 billion for the quarter, compared to analyst estimates of $1.23 billion. Flowers Foods had a return on equity of 14.91% and a net margin of 1.06%.The firm's quarterly revenue was down 4.0% compared to the same quarter last year. During the same quarter last year, the firm earned $0.28 earnings per share. Flowers Foods has set its FY 2026 guidance at 0.750-0.850 EPS. As a group, equities research analysts expect that Flowers Foods, Inc. will post 0.79 EPS for the current year.

Flowers Foods Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, September 25th. Shareholders of record on Friday, September 11th will be given a $0.125 dividend. This represents a $0.50 annualized dividend and a yield of 7.5%. The ex-dividend date is Friday, September 11th. Flowers Foods's dividend payout ratio (DPR) is currently 192.31%.

Insider Activity

In other Flowers Foods news, CFO Diego Anthony Scaglione purchased 5,000 shares of the firm's stock in a transaction on Monday, June 8th. The shares were purchased at an average price of $7.51 per share, for a total transaction of $37,550.00. Following the completion of the purchase, the chief financial officer directly owned 194,180 shares of the company's stock, valued at approximately $1,458,291.80. This represents a 2.64% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 7.23% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Integrated Wealth Concepts LLC bought a new position in shares of Flowers Foods during the 1st quarter worth approximately $499,000. Millennium Management LLC raised its stake in Flowers Foods by 209.6% during the first quarter. Millennium Management LLC now owns 949,688 shares of the company's stock worth $18,054,000 after acquiring an additional 642,942 shares in the last quarter. Goldman Sachs Group Inc. lifted its holdings in shares of Flowers Foods by 7.2% during the first quarter. Goldman Sachs Group Inc. now owns 976,456 shares of the company's stock valued at $18,562,000 after acquiring an additional 65,258 shares during the period. Empowered Funds LLC lifted its holdings in shares of Flowers Foods by 10.6% during the first quarter. Empowered Funds LLC now owns 150,404 shares of the company's stock valued at $2,859,000 after acquiring an additional 14,476 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in shares of Flowers Foods by 12.2% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 744,714 shares of the company's stock valued at $14,157,000 after purchasing an additional 81,066 shares in the last quarter. Institutional investors own 75.45% of the company's stock.

About Flowers Foods

Flowers Foods, Inc is one of the largest producers of packaged bakery foods in the United States, offering a variety of fresh bread, buns, rolls, snack cakes and tortillas. Headquartered in Thomasville, Georgia, the company operates an extensive network of bakeries and distribution centers that serve retail grocery chains, convenience stores, mass merchandisers and foodservice customers nationwide. Flowers Foods markets its products under well-known brands such as Nature's Own, Wonder, Dave's Killer Bread, Mrs.

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