Premium Brands (TSE:PBH) Hits New 1-Year Low - Here's Why

Key Points

• Premium Brands shares fell to a new 52-week low, trading as low as C$75.25 and last changing hands at C$75.55.
• Analysts have cut their price targets, but sentiment remains positive: the stock carries a consensus “Buy” rating and an average target of C$116.25.
• The company reported quarterly revenue of C$2.38 billion and earnings of C$1.53 per share, though profitability remained modest with a 1.01% net margin and 4.19% return on equity.

Premium Brands Holdings Co. (TSE:PBH - Get Free Report) reached a new 52-week low during mid-day trading on Wednesday . The stock traded as low as C$75.25 and last traded at C$75.55, with a volume of 13629 shares trading hands. The stock had previously closed at C$75.79.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on PBH shares. BMO Capital Markets lowered their price objective on shares of Premium Brands from C$118.00 to C$111.00 in a report on Friday, August 7th. Canadian Imperial Bank of Commerce reduced their price objective on shares of Premium Brands from C$115.00 to C$100.00 and set a "strong-buy" rating for the company in a report on Friday, August 7th. ATB Cormark Capital Markets lowered their target price on shares of Premium Brands from C$150.00 to C$130.00 and set an "outperform" rating on the stock in a report on Friday, August 7th. Scotia dropped their price target on shares of Premium Brands from C$110.00 to C$105.00 and set a "sector outperform" rating on the stock in a research report on Friday, August 7th. Finally, Ventum decreased their price objective on Premium Brands from C$128.00 to C$127.00 and set a "buy" rating for the company in a report on Friday, August 7th. One investment analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Buy" and a consensus price target of C$116.25.

Premium Brands Price Performance

The stock has a market cap of C$3.92 billion, a P/E ratio of 45.99, a P/E/G ratio of 1.10 and a beta of 0.77. The business has a 50 day simple moving average of C$83.26 and a 200-day simple moving average of C$85.95. The company has a debt-to-equity ratio of 153.93, a quick ratio of 1.16 and a current ratio of 1.36.

Premium Brands (TSE:PBH - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The company reported C$1.53 earnings per share for the quarter. Premium Brands had a net margin of 1.01% and a return on equity of 4.19%. The company had revenue of C$2.38 billion for the quarter. On average, sell-side analysts forecast that Premium Brands Holdings Co. will post 6.039823 EPS for the current year.

Premium Brands Company Profile

Premium Brands owns a broad range of leading specialty food manufacturing and differentiated food distribution businesses with operations across Canada and the United States.

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