Mama's Creations (NASDAQ:MAMA) Shares Down 7.1% - What's Next?

Key Points

• Mama’s Creations shares fell 7.1% to $13.82 during Tuesday’s trading, with volume rising 16% above its average.
• Analyst sentiment remains broadly positive, with an average “Buy” rating and a $20.00 target price, although Zacks Research and Wall Street Zen recently downgraded the stock to “Hold.”
• The company exceeded quarterly expectations, reporting $0.06 in earnings per share versus $0.05 expected and revenue of $54.58 million versus $52.85 million estimated.

Mama's Creations, Inc. (NASDAQ:MAMA - Get Free Report) dropped 7.1% during mid-day trading on Tuesday . The stock traded as low as $13.91 and last traded at $13.82. 602,613 shares traded hands during mid-day trading, an increase of 16% from the average daily volume of 519,581 shares. The stock had previously closed at $14.88.

Analyst Ratings Changes

A number of research analysts recently commented on the company. Benchmark started coverage on Mama's Creations in a research note on Tuesday, July 21st. They set a "buy" rating and a $25.00 price objective for the company. Zacks Research downgraded shares of Mama's Creations from a "strong-buy" rating to a "hold" rating in a report on Tuesday, July 28th. William Blair started coverage on shares of Mama's Creations in a research report on Friday, July 24th. They set an "outperform" rating for the company. Lake Street Capital reaffirmed a "buy" rating and issued a $22.00 price objective on shares of Mama's Creations in a report on Friday, September 4th. Finally, Wall Street Zen lowered shares of Mama's Creations from a "buy" rating to a "hold" rating in a research note on Sunday, July 12th. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and one has issued a Hold rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Buy" and an average target price of $20.00.

Mama's Creations Stock Performance

The company has a market cap of $629.41 million, a P/E ratio of 79.13 and a beta of 0.56. The company has a quick ratio of 6.48, a current ratio of 6.93 and a debt-to-equity ratio of 0.03. The company has a 50 day moving average price of $17.08 and a 200-day moving average price of $16.09.

Mama's Creations (NASDAQ:MAMA - Get Free Report) last posted its quarterly earnings data on Thursday, September 3rd. The company reported $0.06 earnings per share for the quarter, topping the consensus estimate of $0.05 by $0.01. The business had revenue of $54.58 million during the quarter, compared to the consensus estimate of $52.85 million. Mama's Creations had a net margin of 3.53% and a return on equity of 10.05%. Equities analysts expect that Mama's Creations, Inc. will post 0.25 EPS for the current fiscal year.

Hedge Funds Weigh In On Mama's Creations

Several hedge funds have recently modified their holdings of MAMA. Tidal Investments LLC bought a new stake in shares of Mama's Creations in the 2nd quarter worth $221,000. Squarepoint Ops LLC grew its holdings in Mama's Creations by 278.2% during the second quarter. Squarepoint Ops LLC now owns 138,301 shares of the company's stock worth $2,469,000 after acquiring an additional 101,736 shares during the period. HighTower Advisors LLC acquired a new position in Mama's Creations during the second quarter worth about $183,000. Grandeur Peak Global Advisors LLC raised its position in Mama's Creations by 4.5% in the second quarter. Grandeur Peak Global Advisors LLC now owns 88,406 shares of the company's stock worth $1,578,000 after acquiring an additional 3,798 shares in the last quarter. Finally, Alyeska Investment Group L.P. raised its position in Mama's Creations by 137.5% in the second quarter. Alyeska Investment Group L.P. now owns 950,000 shares of the company's stock worth $16,958,000 after acquiring an additional 550,000 shares in the last quarter. 45.18% of the stock is currently owned by institutional investors and hedge funds.

About Mama's Creations

Mama's Creations, Inc is a food company that develops, produces and distributes prepared foods, with a focus on convenient, heat-and-eat products inspired by Italian and other comfort-food recipes. The company is best known for its meatballs and related refrigerated and frozen offerings, including products made with beef, turkey, pork, chicken and plant-based ingredients.

Its portfolio also includes stuffed shells, sauces, entrées, soups and side dishes sold under the Mama's Creations and MamaMancini's brands, among others.

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