The Campbell's Company (NASDAQ:CPB) Given Average Recommendation of "Reduce" by Brokerages

Key Points

• Analyst consensus: 21 brokerages give Campbell's an average recommendation of "Reduce" (8 sell, 11 hold, 2 buy) with a mean 1‑year price target of $26.89.
• Recent results missed expectations—Q EPS $0.51 vs. $0.57 consensus and revenue $2.56B down 4.5% year‑over‑year—and management set FY2026 guidance of $2.15–$2.25 EPS while analysts forecast about $3.15 for the current year.
• Dividend: Campbell's declared a $0.39 quarterly dividend (annualized $1.56) implying roughly a 7.5% yield, though the payout ratio is high at about 85%, raising questions about sustainability.

Shares of The Campbell's Company (NASDAQ:CPB - Get Free Report) have received an average recommendation of "Reduce" from the twenty-one ratings firms that are presently covering the stock, Marketbeat reports. Eight equities research analysts have rated the stock with a sell recommendation, eleven have issued a hold recommendation and two have given a buy recommendation to the company. The average 1 year price target among brokers that have updated their coverage on the stock in the last year is $26.8889.

CPB has been the subject of a number of analyst reports. Royal Bank Of Canada decreased their price objective on shares of Campbell's from $30.00 to $26.00 and set a "sector perform" rating for the company in a research report on Thursday, March 12th. Sanford C. Bernstein decreased their price objective on shares of Campbell's from $33.00 to $27.00 and set an "outperform" rating for the company in a research report on Thursday, March 12th. Zacks Research downgraded shares of Campbell's from a "hold" rating to a "strong sell" rating in a research report on Thursday, March 12th. Morgan Stanley decreased their price objective on shares of Campbell's from $27.00 to $25.00 and set an "equal weight" rating for the company in a research report on Thursday, March 12th. Finally, DA Davidson reiterated a "neutral" rating and issued a $30.00 price objective on shares of Campbell's in a research report on Thursday, March 12th.

Campbell's Trading Up 0.5%

NASDAQ CPB opened at $20.79 on Friday. The company has a market capitalization of $6.20 billion, a PE ratio of 11.36 and a beta of 0.03. The company has a fifty day moving average of $24.78 and a 200 day moving average of $27.85. Campbell's has a 1 year low of $20.32 and a 1 year high of $39.04. The company has a debt-to-equity ratio of 1.66, a current ratio of 1.01 and a quick ratio of 0.51.

Campbell's (NASDAQ:CPB - Get Free Report) last posted its earnings results on Wednesday, March 11th. The company reported $0.51 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.57 by ($0.06). The business had revenue of $2.56 billion for the quarter. Campbell's had a net margin of 5.48% and a return on equity of 19.96%. Campbell's's revenue for the quarter was down 4.5% compared to the same quarter last year. During the same period in the previous year, the company earned $0.74 EPS. Campbell's has set its FY 2026 guidance at 2.150-2.250 EPS. Research analysts forecast that Campbell's will post 3.15 earnings per share for the current year.

Campbell's Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, May 4th. Shareholders of record on Thursday, April 2nd will be given a $0.39 dividend. The ex-dividend date is Thursday, April 2nd. This represents a $1.56 dividend on an annualized basis and a dividend yield of 7.5%. Campbell's's dividend payout ratio is 85.25%.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of CPB. State Street Corp increased its stake in shares of Campbell's by 1.3% during the second quarter. State Street Corp now owns 11,960,359 shares of the company's stock worth $366,585,000 after purchasing an additional 149,679 shares in the last quarter. Invesco Ltd. increased its stake in shares of Campbell's by 21.6% during the fourth quarter. Invesco Ltd. now owns 9,719,409 shares of the company's stock worth $270,880,000 after purchasing an additional 1,723,676 shares in the last quarter. Dimensional Fund Advisors LP increased its stake in shares of Campbell's by 26.9% during the fourth quarter. Dimensional Fund Advisors LP now owns 8,305,417 shares of the company's stock worth $231,477,000 after purchasing an additional 1,758,460 shares in the last quarter. Two Sigma Investments LP increased its stake in shares of Campbell's by 534.8% during the third quarter. Two Sigma Investments LP now owns 4,937,170 shares of the company's stock worth $155,916,000 after purchasing an additional 4,159,398 shares in the last quarter. Finally, UBS Group AG increased its stake in shares of Campbell's by 175.7% during the third quarter. UBS Group AG now owns 3,730,947 shares of the company's stock worth $117,823,000 after purchasing an additional 2,377,488 shares in the last quarter. Institutional investors and hedge funds own 52.35% of the company's stock.

Campbell's Company Profile

Campbell's NASDAQ: CPB is a leading manufacturer of shelf-stable foods and beverages, best known for its iconic soups and broths. Headquartered in Camden, New Jersey, the company offers a diverse portfolio of products designed to meet consumer demand for convenient, affordable meals and snacks. Since its founding in 1869, Campbell's has grown through a combination of organic innovation and strategic acquisitions to expand its presence in the food industry.

The company's brand portfolio includes Campbell's Condensed Soups, V8 juices, Prego pasta sauces, Swanson broths and stocks, Pace salsas and dips, and Pepperidge Farm baked snacks.

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