Flowers Foods (NYSE:FLO) Stock Price Down 4.3% - Here's Why

Key Points

• Flowers Foods shares fell 4.3% to about $6.40 amid weak trading, bringing the stock well below its 50-day and 200-day moving averages.
• The company recently missed quarterly expectations, reporting $0.21 in EPS versus $0.22 expected and revenue of $1.19 billion versus $1.23 billion expected; revenue declined 4% year over year.
• Analyst sentiment remains cautious, with an average “Reduce” rating and a $7.60 consensus price target. Flowers Foods declared a quarterly dividend of $0.125 per share, implying a high 7.8% annualized yield.

Flowers Foods, Inc. (NYSE:FLO - Get Free Report) shares fell 4.3% during trading on Thursday . The company traded as low as $6.37 and last traded at $6.3950. 3,550,300 shares traded hands during mid-day trading, a decline of 44% from the average session volume of 6,311,314 shares. The stock had previously closed at $6.68.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on FLO. Weiss Ratings raised Flowers Foods from a "sell (d)" rating to a "sell (d+)" rating in a research note on Thursday, August 27th. Zacks Research upgraded shares of Flowers Foods from a "strong sell" rating to a "hold" rating in a report on Thursday, May 21st. Stephens reduced their target price on shares of Flowers Foods from $8.00 to $6.00 and set an "equal weight" rating on the stock in a research report on Monday, August 24th. Finally, Jefferies Financial Group set a $7.00 price target on shares of Flowers Foods in a research report on Monday, August 3rd. Four analysts have rated the stock with a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Reduce" and a consensus target price of $7.60.

Flowers Foods Stock Down 4.6%

The company has a debt-to-equity ratio of 0.97, a current ratio of 0.77 and a quick ratio of 0.57. The stock has a 50 day simple moving average of $7.68 and a 200-day simple moving average of $8.14. The firm has a market cap of $1.35 billion, a PE ratio of 24.52 and a beta of 0.39.

Flowers Foods (NYSE:FLO - Get Free Report) last released its 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 company had revenue of $1.19 billion during the quarter, compared to analysts' expectations of $1.23 billion. Flowers Foods had a return on equity of 14.91% and a net margin of 1.06%.The company's revenue was down 4.0% on a year-over-year basis. During the same period in the prior year, the company posted $0.28 earnings per share. Flowers Foods has set its FY 2026 guidance at 0.750-0.850 EPS. Sell-side analysts predict that Flowers Foods, Inc. will post 0.79 EPS for the current fiscal year.

Flowers Foods Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Friday, September 11th will be issued a dividend of $0.125 per share. The ex-dividend date is Friday, September 11th. This represents a $0.50 dividend on an annualized basis and a dividend yield of 7.8%. Flowers Foods's dividend payout ratio is presently 192.31%.

Insider Buying and Selling at Flowers Foods

In other news, CFO Diego Anthony Scaglione purchased 5,000 shares of Flowers Foods stock in a transaction that occurred on Monday, June 8th. The stock was bought at an average price of $7.51 per share, with a total value of $37,550.00. Following the completion of the transaction, the chief financial officer directly owned 194,180 shares of the company's stock, valued at approximately $1,458,291.80. The trade was a 2.64% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 7.23% of the stock is owned by company insiders.

Institutional Trading of Flowers Foods

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. California State Teachers Retirement System raised its stake in Flowers Foods by 614.0% during the second quarter. California State Teachers Retirement System now owns 1,732,960 shares of the company's stock valued at $13,690,000 after purchasing an additional 1,490,245 shares in the last quarter. Wedmont Private Capital bought a new position in shares of Flowers Foods in the 2nd quarter valued at about $98,000. HB Wealth Management LLC grew its position in Flowers Foods by 22.7% in the second quarter. HB Wealth Management LLC now owns 19,951 shares of the company's stock worth $158,000 after acquiring an additional 3,695 shares in the last quarter. Syon Capital LLC grew its position in Flowers Foods by 54.0% in the second quarter. Syon Capital LLC now owns 89,833 shares of the company's stock worth $710,000 after acquiring an additional 31,491 shares in the last quarter. Finally, Concurrent Investment Advisors LLC increased its stake in Flowers Foods by 22.6% during the second quarter. Concurrent Investment Advisors LLC now owns 30,810 shares of the company's stock worth $243,000 after acquiring an additional 5,688 shares during the last quarter. Hedge funds and other institutional investors own 75.45% of the company's stock.

Flowers Foods Company Profile

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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