Utz Brands (NYSE:UTZ) Cut to Hold at Piper Sandler

Key Points

• Piper Sandler downgraded Utz Brands from strong-buy to hold, following a broader trend of more cautious analyst sentiment after the recent deal news.
• Utz Brands has agreed to a $2.9 billion take-private acquisition by Intersnack Group, with shareholders expected to receive about $14.25 per share in cash.
• Multiple brokerages have adjusted their views and price targets, while law firms are investigating whether the buyout price is fair, adding uncertainty even though the transaction remains intact.

Utz Brands (NYSE:UTZ - Get Free Report) was downgraded by equities researchers at Piper Sandler from a "strong-buy" rating to a "hold" rating in a research note issued to investors on Wednesday,Zacks.com reports.

Other analysts have also recently issued reports about the stock. Zacks Research raised shares of Utz Brands from a "strong sell" rating to a "hold" rating in a research note on Monday, April 20th. Barclays lowered Utz Brands from an "overweight" rating to an "equal weight" rating and set a $14.00 target price on the stock. in a research report on Tuesday. Royal Bank Of Canada set a $15.00 target price on Utz Brands in a report on Thursday, April 9th. Stephens set a $14.25 price target on Utz Brands in a research report on Tuesday. Finally, BTIG Research initiated coverage on Utz Brands in a research report on Monday, April 13th. They set a "buy" rating and a $10.00 price target for the company. Two analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $13.39.

Utz Brands Price Performance

UTZ opened at $14.09 on Wednesday. The company's 50 day simple moving average is $7.83 and its 200 day simple moving average is $8.43. The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.75 and a current ratio of 1.14. Utz Brands has a 1 year low of $6.78 and a 1 year high of $14.53. The stock has a market capitalization of $2.03 billion, a PE ratio of -140.84, a P/E/G ratio of 5.11 and a beta of 0.82.

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

Institutional Investors Weigh In On Utz Brands

Several large investors have recently made changes to their positions in the business. Royal Bank of Canada boosted its position in Utz Brands by 39.7% during the 1st quarter. Royal Bank of Canada now owns 248,912 shares of the company's stock worth $3,504,000 after purchasing an additional 70,739 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in Utz Brands by 5.9% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 39,470 shares of the company's stock valued at $556,000 after purchasing an additional 2,190 shares in the last quarter. Goldman Sachs Group Inc. raised its position in Utz Brands by 40.8% in the first quarter. Goldman Sachs Group Inc. now owns 2,022,709 shares of the company's stock valued at $28,480,000 after purchasing an additional 585,952 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in Utz Brands by 36.4% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 196,013 shares of the company's stock valued at $2,760,000 after purchasing an additional 52,285 shares during the period. Finally, Legal & General Group Plc lifted its stake in shares of Utz Brands by 10.0% during the second quarter. Legal & General Group Plc now owns 77,578 shares of the company's stock worth $974,000 after purchasing an additional 7,073 shares in the last quarter. Institutional investors and hedge funds own 95.97% of the company's stock.

More Utz Brands News

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

• Positive Sentiment: Utz agreed to be acquired in a $2.9 billion take-private deal by Intersnack Group, giving shareholders a fixed cash exit near $14.25 per share and driving the stock closer to the deal price. Utz Will Go Private in $2.9B Deal With Intersnack
• Positive Sentiment: Piper Sandler reaffirmed a neutral rating but raised its price target to $14.25 from $10.00, suggesting the market may have already largely priced in the transaction value. Piper Sandler rating update
• Neutral Sentiment: Multiple law firms have announced investigations into whether the $14.25 buyout price is fair to current UTZ shareholders. These reviews do not change the deal itself, but they can add headline risk and uncertainty around the closing process. UTZ Notification: Utz Brands Investigated Over $14.25 per share Transaction
• Negative Sentiment: Several brokerages, including DA Davidson, Barclays, and Stephens, downgraded UTZ to weaker ratings after the deal announcement, reflecting limited upside beyond the takeover price and potential execution risk before closing. Barclays Downgrades Utz Brands to Equal Weight

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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