TreeHouse Foods Inc. (NYSE:THS) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Thursday.
According to Zacks, “Estimates have been largely unchanged since Treehouse reported second quarter 2016 earnings release. While the company posted in-line earnings, net sales missed the Zacks Consensus Estimate by 2.5%. It is encouraging that the company is in the process of cutting costs and improving efficiency. It is closing and consolidating facilities, which will help maintain margins. The buyout of the private brands operations of ConAgra Foods and favorable volume/mix, primarily in the North American Retail Grocery segment will boost sales. However, lower margin structure of the acquired business of private brands will hurt gross margins and would hurt profits. Further, the company anticipates the overall food industry to face weakness and expects full year revenues for the industry to remain flat. Foreign exchange headwinds will also continue to challenge margins.”
Other equities analysts also recently issued research reports about the company. Susquehanna reaffirmed a “buy” rating on shares of TreeHouse Foods in a research report on Sunday, July 17th. BMO Capital Markets reaffirmed a “market perform” rating and set a $98.00 price target on shares of TreeHouse Foods in a research report on Friday, August 5th. JPMorgan Chase & Co. set a $119.00 price target on TreeHouse Foods and gave the stock a “buy” rating in a research report on Friday, August 5th. Finally, Jefferies Group reaffirmed a “buy” rating on shares of TreeHouse Foods in a research report on Monday, August 1st. One research analyst has rated the stock with a sell rating, two have given a hold rating and six have assigned a buy rating to the company. The company presently has a consensus rating of “Buy” and an average target price of $107.71.
TreeHouse Foods (NYSE:THS) opened at 88.28 on Thursday. TreeHouse Foods has a 12 month low of $66.30 and a 12 month high of $104.53. The company has a market cap of $5.01 billion, a price-to-earnings ratio of 56.23 and a beta of 0.40. The company’s 50-day moving average is $90.77 and its 200-day moving average is $93.55.
TreeHouse Foods (NYSE:THS) last posted its earnings results on Thursday, August 4th. The company reported $0.54 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.54. TreeHouse Foods had a return on equity of 6.18% and a net margin of 1.74%. The business earned $1.50 billion during the quarter, compared to analysts’ expectations of $1.58 billion. During the same period in the prior year, the business earned $0.66 EPS. TreeHouse Foods’s revenue for the quarter was up 103.0% compared to the same quarter last year. On average, equities research analysts anticipate that TreeHouse Foods will post $3.07 earnings per share for the current year.
In other TreeHouse Foods news, VP Thomas Emmet Oneill III sold 6,000 shares of the firm’s stock in a transaction on Friday, August 19th. The stock was sold at an average price of $97.00, for a total transaction of $582,000.00. Following the completion of the sale, the vice president now owns 145,138 shares of the company’s stock, valued at approximately $14,078,386. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 3.40% of the stock is owned by insiders.
Large investors have recently made changes to their positions in the stock. Symons Capital Management Inc. increased its stake in shares of TreeHouse Foods by 0.6% in the second quarter. Symons Capital Management Inc. now owns 2,405 shares of the company’s stock valued at $247,000 after buying an additional 15 shares in the last quarter. 1st Global Advisors Inc. increased its stake in shares of TreeHouse Foods by 0.5% in the second quarter. 1st Global Advisors Inc. now owns 4,832 shares of the company’s stock valued at $496,000 after buying an additional 22 shares in the last quarter. Suntrust Banks Inc. increased its stake in shares of TreeHouse Foods by 1.4% in the second quarter. Suntrust Banks Inc. now owns 3,784 shares of the company’s stock valued at $387,000 after buying an additional 51 shares in the last quarter. State Treasurer State of Michigan increased its stake in shares of TreeHouse Foods by 0.4% in the second quarter. State Treasurer State of Michigan now owns 22,600 shares of the company’s stock valued at $2,320,000 after buying an additional 100 shares in the last quarter. Finally, Calvert Investment Management Inc. increased its stake in shares of TreeHouse Foods by 3.8% in the second quarter. Calvert Investment Management Inc. now owns 4,299 shares of the company’s stock valued at $441,000 after buying an additional 157 shares in the last quarter. 84.69% of the stock is owned by institutional investors and hedge funds.
TreeHouse Foods Company Profile
TreeHouse Foods, Inc is a consumer packaged food and beverage manufacturing company. The Company’s segments include North American Retail Grocery, Food Away From Home, and Industrial and Export. It manufactures a range of shelf stable, refrigerated and fresh products. Its product categories include beverages, salad dressings, snacks, beverage enhancers, pickles, Mexican and other sauces, soup and infant feeding, cereals, dry dinners, aseptic products, jams and other products.
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