Post (NYSE:POST) Sets New 52-Week Low - What's Next?

Key Points

• Post Holdings shares fell to a new 52-week low of $75.40, well below their 50-day and 200-day moving averages, amid concerns about slowing sales and future earnings contraction.
• The latest quarter showed mixed results: EPS of $1.78 beat estimates, but revenue declined 1.8% year over year and came in below consensus. Analysts project about $7.56 in full-year EPS.
• Wall Street’s consensus rating is Hold with a $109 price target, although several firms recently lowered their targets and Weiss Ratings downgraded the stock to Sell. Positive commentary points to the company’s defensive branded-food portfolio and potentially attractive valuation.

Shares of Post Holdings, Inc. (NYSE:POST - Get Free Report) hit a new 52-week low during mid-day trading on Monday . The company traded as low as $75.40 and last traded at $75.6860, with a volume of 275822 shares changing hands. The stock had previously closed at $76.57.

Key Headlines Impacting Post

Here are the key news stories impacting Post this week:

• Positive Sentiment: An analysis argues that Post Holdings is an overlooked, inexpensive food stock, highlighting potential value at its current valuation and the defensive nature of its branded-food portfolio. This could support the shares if investors begin focusing on cash flow and valuation rather than slowing growth. Post Holdings: A Cheap Food Stock The Market Keeps Ignoring
• Positive Sentiment: Another article contends that the projected 2027 earnings decline may look worse than it actually is, suggesting that comparisons, temporary pressures or investment spending could make the expected drop less concerning. The thesis may reduce worries about the company’s longer-term earnings power. Post Holdings: The 2027 Earnings Decline Looks Worse Than It Is
• Neutral Sentiment: Broader market sentiment improved modestly, with the Nasdaq posting gains, but investors remained cautious amid continued “fear” readings and mixed performance across major indexes. This provides limited support for POST and does not address company-specific concerns. Nasdaq Gains Over 100 Points, Posts Weekly Gain
• Negative Sentiment: The company’s latest reported quarter remains a headwind: revenue fell short of estimates and declined year over year, while EPS was below the prior-year period despite beating the consensus forecast. With analysts expecting roughly $7.56 in full-year EPS, investors may remain focused on slowing sales and the prospect of future earnings contraction.

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on the company. Weiss Ratings downgraded Post from a "hold (c)" rating to a "sell (d+)" rating in a research report on Monday, August 17th. Wells Fargo & Company cut their price objective on Post from $98.00 to $86.00 and set an "equal weight" rating for the company in a research report on Monday, August 10th. Jefferies Financial Group set a $117.00 target price on Post in a research note on Monday, July 27th. Barclays decreased their target price on Post from $106.00 to $95.00 and set an "overweight" rating on the stock in a report on Monday, August 10th. Finally, JPMorgan Chase & Co. cut their price target on Post from $116.00 to $99.00 and set an "overweight" rating for the company in a report on Monday, August 10th. Four research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $109.00.

Post Price Performance

The company's 50-day simple moving average is $84.20 and its 200-day simple moving average is $92.49. The company has a debt-to-equity ratio of 2.47, a current ratio of 1.85 and a quick ratio of 0.99. The stock has a market capitalization of $3.42 billion, a price-to-earnings ratio of 13.89 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 the consensus estimate of $1.70 by $0.08. The company had revenue of $1.95 billion for the quarter, compared to the consensus estimate of $2.02 billion. Post had a return on equity of 13.22% and a net margin of 3.48%.The firm's revenue for the quarter was down 1.8% on a year-over-year basis. During the same quarter in the prior year, the business earned $2.03 earnings per share. Research analysts forecast that Post Holdings, Inc. will post 7.56 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Post news, Chairman William P. Stiritz sold 277,935 shares of the stock in a transaction on Wednesday, September 2nd. The stock was sold at an average price of $84.23, for a total transaction of $23,410,465.05. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. 14.05% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Post

Several institutional investors and hedge funds have recently modified their holdings of POST. Larson Financial Group LLC raised its stake in Post by 62.8% in the 4th quarter. Larson Financial Group LLC now owns 267 shares of the company's stock worth $26,000 after purchasing an additional 103 shares in the last quarter. Summit Securities Group LLC bought a new position in shares of Post during the first quarter worth approximately $28,000. Meeder Asset Management Inc. acquired a new stake in shares of Post in the first quarter valued at approximately $69,000. Caitong International Asset Management Co. Ltd raised its position in shares of Post by 291.7% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 948 shares of the company's stock valued at $94,000 after buying an additional 706 shares in the last quarter. Finally, Parkside Financial Bank & Trust boosted its stake in shares of Post by 22.8% in the second quarter. Parkside Financial Bank & Trust now owns 1,271 shares of the company's stock valued at $112,000 after buying an additional 236 shares during the period. 94.85% of the stock is currently owned by institutional investors and hedge funds.

Post Company Profile

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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