Utz Brands, Inc. (NYSE:UTZ) Receives Consensus Recommendation of "Hold" from Analysts

Key Points

• Utz Brands has a consensus analyst rating of "Hold" from 11 brokerages, with an average 12-month price target of about $13.27.
• The company agreed to be acquired by Intersnack Group for $14.25 per share in cash, a deal that implies roughly a 91% premium and has lifted the stock sharply.
• Despite the takeover news, law firms have launched shareholder investigations into whether the sale process and price were fair, creating some legal and headline risk.

Utz Brands, Inc. (NYSE:UTZ - Get Free Report) has received an average rating of "Hold" from the eleven brokerages that are currently covering the stock, MarketBeat.com reports. One investment analyst has rated the stock with a sell rating, seven have given a hold rating and three have issued a buy rating on the company. The average 12-month price objective among analysts that have covered the stock in the last year is $13.2727.

A number of brokerages have issued reports on UTZ. Zacks Research raised shares of Utz Brands from a "strong sell" rating to a "hold" rating in a research report on Monday, April 20th. UBS Group reissued a "neutral" rating and set a $14.25 target price on shares of Utz Brands in a research report on Wednesday. Stephens set a $14.25 target price on Utz Brands in a research note on Tuesday. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Utz Brands in a research report on Wednesday, June 24th. Finally, BTIG Research initiated coverage on Utz Brands in a report on Monday, April 13th. They set a "buy" rating and a $10.00 price target on the stock.

Institutional Investors Weigh In On Utz Brands

A number of hedge funds have recently made changes to their positions in UTZ. NewEdge Advisors LLC purchased a new position in shares of Utz Brands in the 2nd quarter worth about $25,000. Global Retirement Partners LLC increased its holdings in Utz Brands by 431.5% during the fourth quarter. Global Retirement Partners LLC now owns 3,343 shares of the company's stock worth $35,000 after buying an additional 2,714 shares during the last quarter. Osaic Holdings Inc. raised its position in Utz Brands by 76.1% in the second quarter. Osaic Holdings Inc. now owns 3,756 shares of the company's stock worth $47,000 after acquiring an additional 1,623 shares during the period. Farther Finance Advisors LLC raised its position in Utz Brands by 118.5% in the fourth quarter. Farther Finance Advisors LLC now owns 4,356 shares of the company's stock worth $45,000 after acquiring an additional 2,362 shares during the period. Finally, Versant Capital Management Inc raised its position in Utz Brands by 363.5% in the second quarter. Versant Capital Management Inc now owns 6,086 shares of the company's stock worth $47,000 after acquiring an additional 4,773 shares during the period. 95.97% of the stock is currently owned by institutional investors.

Utz Brands Price Performance

Shares of NYSE:UTZ opened at $14.06 on Thursday. The company has a current ratio of 1.14, a quick ratio of 0.75 and a debt-to-equity ratio of 0.62. The stock has a market cap of $2.02 billion, a PE ratio of -140.64, a price-to-earnings-growth ratio of 5.11 and a beta of 0.82. The stock's fifty day simple moving average is $7.69 and its two-hundred day simple moving average is $8.40. Utz Brands has a 1-year low of $6.78 and a 1-year high of $14.67.

Utz Brands (NYSE:UTZ - Get Free Report) last posted its earnings results on Wednesday, May 6th. The company reported $0.15 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.14 by $0.01. Utz Brands had a negative net margin of 0.58% and a positive return on equity of 8.61%. The firm had revenue of $361.30 million during the quarter, compared to analyst estimates of $361.76 million. During the same quarter in the prior year, the business posted $0.16 EPS. The business's revenue was up 2.6% compared to the same quarter last year. Utz Brands has set its FY 2026 guidance at 0.771-0.795 EPS. As a group, analysts forecast that Utz Brands will post 0.78 EPS for the current fiscal year.

Utz Brands Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, July 2nd. Stockholders of record on Monday, June 22nd were given a dividend of $0.063 per share. The ex-dividend date of this dividend was Monday, June 22nd. This represents a $0.25 annualized dividend and a dividend yield of 1.8%. Utz Brands's dividend payout ratio (DPR) is currently -250.00%.

Key Stories Impacting Utz Brands

Here are the key news stories impacting Utz Brands this week:

• Positive Sentiment: Utz Brands agreed to be acquired by Intersnack Group for $14.25 per share in cash, sending the stock sharply higher on the takeover premium. Utz Brands to be taken private by Germany’s Intersnack Group
• Positive Sentiment: The deal price implies a roughly 91% premium, which is driving heavy trading and optimism that shareholders will receive a sizable cash payout if the transaction closes. Utz Brands to Be Taken Private in $2.9 Billion Deal
• Positive Sentiment: Several market reports highlighted that packaged-food peers also benefited from the buyout news, reinforcing the view that the transaction confirms strategic value in the snack category. Packaged food stocks perk up after Utz Brands buyout
• Neutral Sentiment: Law firms have launched investigations into whether the sale process and price were fair to public shareholders, which is common in take-private deals but could create headline risk. Shareholder Alert: The M&A Class Action Firm Announces An Investigation of Utz Brands, Inc.
• Negative Sentiment: Analyst downgrades from Barclays and Stephens to “equal weight” suggest limited upside from here given the deal price is near the expected value. Utz Brands was downgraded by Barclays PLC

Utz Brands Company Profile

Utz Brands, Inc is a leading U.S. manufacturer and distributor of salty snack foods, offering a wide range of products including potato chips, pretzels, cheese snacks, popcorn and tortilla chips. Headquartered in Hanover, Pennsylvania, the company markets its snacks under several well-known brands and serves grocery, mass merchandise, club, convenience and online retailers throughout the United States.

Founded in 1921 by Bill and Salie Utz as a small country store operation, the business expanded gradually through direct delivery to local customers and sales to regional grocers.

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