Post (NYSE:POST) Reaches New 52-Week Low - Should You Sell?

Key Points

• Post Holdings shares fell to a new 52-week low of $72.53, trading well below their 50-day and 200-day moving averages of $83.05 and $91.39, respectively.
• Analyst sentiment is mixed, with an average rating of “Hold” and a consensus price target of $109; several firms recently lowered their targets, though four analysts maintain Buy ratings.
• Post exceeded quarterly EPS estimates but missed revenue expectations, with sales down 1.8% year over year. Potentially higher fuel and logistics costs, along with a major insider share sale, add further concerns for investors.

Post Holdings, Inc. (NYSE:POST - Get Free Report)'s stock price hit a new 52-week low during trading on Monday. The stock traded as low as $72.53 and last traded at $73.0750, with a volume of 9181 shares changing hands. The stock had previously closed at $73.15.

More Post News

Here are the key news stories impacting Post this week:

• Negative Sentiment: A threatened U.S. diesel-export ban could intensify a global fuel shortage and sharply increase transportation and distribution costs. That would be a potential margin headwind for Post Holdings, whose portfolio of packaged foods requires significant freight and logistics activity. Posthaste: How Trump’s threatened ban could fan the flames of the world’s fuel shock
• Neutral Sentiment: Escalating tensions between the U.S. and Iran, including the risk of disruption around the Strait of Hormuz, add uncertainty to energy and commodity markets. Higher fuel prices could pressure Post’s costs, although a broader geopolitical shock could also lift investor interest in defensive consumer-staples companies. Iran and U.S. talks and Strait of Hormuz tensions

Wall Street Analyst Weigh In

Several brokerages have issued reports on POST. Wells Fargo & Company decreased their price objective on shares of Post from $98.00 to $86.00 and set an "equal weight" rating for the company in a research note on Monday, August 10th. Evercore set a $121.00 target price on Post in a research note on Monday, August 10th. Barclays reduced their price target on Post from $106.00 to $95.00 and set an "overweight" rating on the stock in a report on Monday, August 10th. Stifel Nicolaus set a $125.00 price target on Post in a research note on Friday, August 7th. Finally, JPMorgan Chase & Co. dropped their price objective on Post from $116.00 to $99.00 and set an "overweight" rating for the company in a report on Monday, August 10th. Four investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $109.00.

Post Trading Up 1.7%

The company has a quick ratio of 0.99, a current ratio of 1.85 and a debt-to-equity ratio of 2.47. The stock's 50 day moving average is $83.05 and its two-hundred day moving average is $91.39. The company has a market capitalization of $3.37 billion, a PE ratio of 13.66 and a beta of 0.37.

Post (NYSE:POST - Get Free Report) last posted its earnings results on Thursday, August 6th. The company reported $1.78 EPS for the quarter, beating analysts' consensus estimates of $1.70 by $0.08. Post had a net margin of 3.48% and a return on equity of 13.22%. The business had revenue of $1.95 billion for the quarter, compared to the consensus estimate of $2.02 billion. During the same quarter last year, the firm posted $2.03 EPS. The company's revenue for the quarter was down 1.8% on a year-over-year basis. As a group, sell-side analysts predict that Post Holdings, Inc. will post 7.56 EPS for the current fiscal year.

Insider Transactions at Post

In related news, Chairman William P. Stiritz sold 277,935 shares of the business's stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $84.23, for a total value of $23,410,465.05. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. 14.05% of the stock is currently owned by insiders.

Institutional Trading of Post

A number of hedge funds have recently bought and sold shares of the stock. Dimensional Fund Advisors LP increased its holdings in shares of Post by 3.9% in the 1st quarter. Dimensional Fund Advisors LP now owns 3,071,875 shares of the company's stock valued at $303,678,000 after acquiring an additional 114,677 shares during the period. Norges Bank purchased a new stake in shares of Post during the 4th quarter worth $113,660,000. Geode Capital Management LLC lifted its stake in shares of Post by 1.0% during the 4th quarter. Geode Capital Management LLC now owns 880,993 shares of the company's stock worth $87,282,000 after purchasing an additional 8,906 shares during the last quarter. Diamond Hill Capital Management LLC Investment Advisor bought a new stake in Post during the second quarter valued at about $54,599,000. Finally, Junto Capital Management LP boosted its position in Post by 44.6% during the second quarter. Junto Capital Management LP now owns 589,457 shares of the company's stock valued at $52,025,000 after purchasing an additional 181,849 shares in the last quarter. Hedge funds and other institutional investors own 94.85% of the company's stock.

About Post

Post Holdings, Inc is a consumer packaged goods company that develops, manufactures and markets branded and private-label food products. Its portfolio includes ready-to-eat cereal, hot cereal, pet food, protein products, peanut butter, and other grocery items sold through retail and e-commerce channels.

The company operates through several businesses, including Post Consumer Brands, Weetabix, Foodservice and Refrigerated Retail. Its brands include Honey Bunches of Oats, Pebbles, Grape-Nuts, Raisin Bran, Malt-O-Meal, Weetabix, Alpen, Bob Evans and Simply Potatoes.

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