Flowers Foods (NYSE:FLO) Sets New 52-Week Low - Time to Sell?

Key Points

• Flowers Foods shares fell to a new 52-week low of about $6.00, trading well below their 50-day and 200-day moving averages. Analysts maintain a cautious outlook, with a consensus “Reduce” rating and an average price target of $7.60.
• The company’s latest quarter missed expectations, reporting EPS of $0.21 versus $0.22 expected and revenue of $1.19 billion versus $1.23 billion expected. Revenue declined 4% year over year, while full-year EPS guidance stands at $0.75–$0.85.
• Flowers Foods declared a quarterly dividend of $0.125 per share, implying an annualized 8.4% yield; however, its payout ratio is elevated at 192.31%, raising potential sustainability concerns.

Shares of Flowers Foods, Inc. (NYSE:FLO - Get Free Report) hit a new 52-week low during mid-day trading on Monday . The stock traded as low as $6.00 and last traded at $5.9750, with a volume of 2910244 shares. The stock had previously closed at $6.09.

Wall Street Analysts Forecast Growth

FLO has been the topic of several research reports. Stephens lowered their target price 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. Jefferies Financial Group set a $7.00 price target on Flowers Foods in a report on Monday, August 3rd. Weiss Ratings raised Flowers Foods from a "sell (d)" rating to a "sell (d+)" rating in a research report on Thursday, August 27th. Finally, Zacks Research upgraded Flowers Foods from a "strong sell" rating to a "hold" rating in a research report on Thursday, May 21st. Four analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, Flowers Foods has a consensus rating of "Reduce" and an average target price of $7.60.

Flowers Foods Stock Performance

The company has a quick ratio of 0.57, a current ratio of 0.77 and a debt-to-equity ratio of 0.97. The company has a market cap of $1.26 billion, a PE ratio of 22.95 and a beta of 0.39. The stock's 50 day simple moving average is $7.42 and its two-hundred day simple moving average is $7.96.

Flowers Foods (NYSE:FLO - Get Free Report) last announced its quarterly earnings data on Thursday, August 20th. The company reported $0.21 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.22 by ($0.01). The company had revenue of $1.19 billion for the quarter, compared to analysts' expectations of $1.23 billion. Flowers Foods had a net margin of 1.06% and a return on equity of 14.91%. The firm's quarterly revenue was down 4.0% on a year-over-year basis. During the same period in the prior 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, research analysts anticipate that Flowers Foods, Inc. will post 0.8 earnings per share for the current year.

Flowers Foods Announces Dividend

The company 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 dividend of $0.125 per share. This represents a $0.50 dividend on an annualized basis and a yield of 8.4%. The ex-dividend date of this dividend is Friday, September 11th. Flowers Foods's payout ratio is 192.31%.

Hedge Funds Weigh In On Flowers Foods

A number of large investors have recently modified their holdings of FLO. Wilmington Savings Fund Society FSB grew its holdings in shares of Flowers Foods by 225.6% during the 3rd quarter. Wilmington Savings Fund Society FSB now owns 2,400 shares of the company's stock worth $31,000 after purchasing an additional 1,663 shares during the period. Geneos Wealth Management Inc. lifted its position in Flowers Foods by 64.4% during the second quarter. Geneos Wealth Management Inc. now owns 2,555 shares of the company's stock valued at $41,000 after buying an additional 1,001 shares in the last quarter. IFP Advisors Inc lifted its position in Flowers Foods by 140.7% during the fourth quarter. IFP Advisors Inc now owns 3,025 shares of the company's stock valued at $33,000 after buying an additional 1,768 shares in the last quarter. Larson Financial Group LLC grew its stake in Flowers Foods by 34.9% during the fourth quarter. Larson Financial Group LLC now owns 3,272 shares of the company's stock worth $36,000 after buying an additional 846 shares during the period. Finally, Optiver Holding B.V. grew its stake in Flowers Foods by 542.5% during the first quarter. Optiver Holding B.V. now owns 3,386 shares of the company's stock worth $28,000 after buying an additional 2,859 shares during the period. 75.45% of the stock is currently owned by hedge funds and other institutional investors.

About Flowers Foods

Flowers Foods, Inc is a U.S.-based producer and distributor of packaged bakery foods. The company makes breads, buns, rolls, snack cakes, tortillas and related baked goods for retail, foodservice and other commercial customers.

Its portfolio includes nationally recognized brands such as Nature's Own, Dave's Killer Bread, Wonder, Tastykake, Canyon Bakehouse and Mrs. Freshley's. Flowers Foods also supplies baked goods through regional and local brands, serving grocery stores, mass merchants, club retailers, restaurants and foodservice distributors.

Founded in 1919 and headquartered in Thomasville, Georgia, Flowers Foods operates bakeries and distribution facilities across the United States.

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