Traders Buy High Volume of Albertsons Companies Call Options (NYSE:ACI)

Key Points

• Unusual options activity: Investors purchased 4,588 Albertsons call options, 41% above the average volume, suggesting increased speculative interest in the stock.
• Weak recent performance: ACI shares traded near $11.38, close to their 52-week low, after quarterly earnings of $0.42 per share missed estimates of $0.54. Several analysts also cut their price targets and ratings.
• High dividend yield: Albertsons declared a quarterly dividend of $0.17, equivalent to $0.68 annually and a 6.0% yield, though its reported payout ratio is an elevated 850%.

Albertsons Companies, Inc. (NYSE:ACI - Get Free Report) saw some unusual options trading activity on Monday. Stock investors purchased 4,588 call options on the company. This is an increase of 41% compared to the average volume of 3,259 call options.

Albertsons Companies Stock Performance

Shares of ACI stock traded up $0.34 during midday trading on Monday, hitting $11.38. 13,753,343 shares of the company were exchanged, compared to its average volume of 7,682,275. Albertsons Companies has a 52 week low of $10.86 and a 52 week high of $20.05. The firm has a market capitalization of $5.57 billion, a P/E ratio of 142.19, a PEG ratio of 1.17 and a beta of 0.42. The firm's 50 day moving average price is $14.83 and its two-hundred day moving average price is $16.35. The company has a debt-to-equity ratio of 5.22, a quick ratio of 0.21 and a current ratio of 0.84.

Albertsons Companies (NYSE:ACI - Get Free Report) last released its quarterly earnings results on Thursday, July 23rd. The company reported $0.42 earnings per share for the quarter, missing the consensus estimate of $0.54 by ($0.12). The company had revenue of $24.94 billion during the quarter, compared to the consensus estimate of $24.84 billion. Albertsons Companies had a net margin of 0.08% and a return on equity of 45.59%. The firm's revenue was up .2% compared to the same quarter last year. During the same period in the prior year, the company earned $0.55 earnings per share. Albertsons Companies has set its FY 2026 guidance at 1.750-1.850 EPS. As a group, equities research analysts anticipate that Albertsons Companies will post 2.11 earnings per share for the current year.

Albertsons Companies Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, August 7th. Stockholders of record on Friday, July 24th will be given a $0.17 dividend. The ex-dividend date of this dividend is Friday, July 24th. This represents a $0.68 annualized dividend and a dividend yield of 6.0%. Albertsons Companies's dividend payout ratio is presently 850.00%.

More Albertsons Companies News

Here are the key news stories impacting Albertsons Companies this week:

• Positive Sentiment: A Seeking Alpha contributor upgraded Albertsons, arguing that the company’s turnaround expectations are already “priced for failure.” The thesis suggests that operational improvements or better-than-feared results could provide upside from depressed valuation levels. Albertsons: The Turnaround Is Priced For Failure (Rating Upgrade)
• Positive Sentiment: Investors purchased approximately 4,588 ACI call options, about 41% above typical call volume. The activity may indicate speculative bullish interest, although options volume alone does not guarantee a sustained rally.

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on the company. Barclays reduced their price target on Albertsons Companies from $17.00 to $12.00 and set an "underweight" rating for the company in a report on Friday. The Goldman Sachs Group dropped their price objective on Albertsons Companies from $24.00 to $16.00 and set a "buy" rating on the stock in a research note on Friday. Weiss Ratings cut Albertsons Companies from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Friday, May 29th. BMO Capital Markets downgraded Albertsons Companies from an "outperform" rating to a "market perform" rating and reduced their target price for the stock from $23.00 to $12.00 in a research note on Friday. Finally, Wells Fargo & Company lowered Albertsons Companies from an "overweight" rating to an "equal weight" rating and decreased their target price for the stock from $18.00 to $11.00 in a report on Thursday. Six research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat.com, Albertsons Companies has an average rating of "Hold" and a consensus target price of $15.92.

Institutional Trading of Albertsons Companies

Hedge funds have recently added to or reduced their stakes in the company. CWM LLC grew its holdings in Albertsons Companies by 103.5% in the 4th quarter. CWM LLC now owns 1,435 shares of the company's stock valued at $25,000 after buying an additional 730 shares in the last quarter. NBC Securities Inc. lifted its holdings in shares of Albertsons Companies by 91.2% during the fourth quarter. NBC Securities Inc. now owns 1,855 shares of the company's stock worth $32,000 after buying an additional 885 shares in the last quarter. EverSource Wealth Advisors LLC lifted its holdings in shares of Albertsons Companies by 172.8% during the fourth quarter. EverSource Wealth Advisors LLC now owns 2,062 shares of the company's stock worth $35,000 after buying an additional 1,306 shares in the last quarter. Allworth Financial LP boosted its position in shares of Albertsons Companies by 64.5% in the third quarter. Allworth Financial LP now owns 2,799 shares of the company's stock valued at $49,000 after acquiring an additional 1,097 shares during the period. Finally, Fifth Third Bancorp boosted its position in shares of Albertsons Companies by 44.2% in the fourth quarter. Fifth Third Bancorp now owns 4,412 shares of the company's stock valued at $76,000 after acquiring an additional 1,353 shares during the period. 71.35% of the stock is owned by institutional investors and hedge funds.

Albertsons Companies Company Profile

Albertsons Companies, Inc NYSE: ACI is one of the largest food and drug retailers in the United States, operating a diversified portfolio of grocery store banners. Founded in 1939 by Joe Albertson in Boise, Idaho, the company has grown through both organic expansion and strategic acquisitions. Its core business activities encompass the sale of fresh produce, meat, bakery items, deli offerings, pharmacy services, and general merchandise. The company's retail operations are complemented by an in-house private-label program, featuring brands such as O Organics, Open Nature, and Lucerne, which cater to a range of customer preferences and price points.

Throughout its history, Albertsons Companies has pursued growth via mergers and partnerships.

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