Zacks Investment Research downgraded shares of Mondelez International (NASDAQ:MDLZ) from a buy rating to a hold rating in a research note issued to investors on Friday morning.
According to Zacks, “Mondelez has an attractive portfolio of iconic brands, commanding presence in impulsive categories and fast-growing emerging markets. Mondelez’ margins have remained constantly strong backed by cost savings and productivity gains. Also, shares of the company outperformed its industry in the last six months. Earnings estimates for 2018 and 2019 increased 3.8% and 4.7%, respectively, over the last 60 days, reflecting analysts’ optimism. However, Mondelez’s volumes have been hurt since 2014 by the elasticity impact from higher pricing and category weakness because of soft consumer demand.”
Other analysts have also issued reports about the stock. TheStreet raised shares of Mondelez International from a c+ rating to a b rating in a research report on Thursday, December 21st. Barclays reissued a buy rating and issued a $50.00 price objective on shares of Mondelez International in a research report on Friday, February 2nd. BidaskClub raised shares of Mondelez International from a strong sell rating to a sell rating in a research report on Monday, February 5th. Piper Jaffray Companies reissued a buy rating and issued a $52.00 price objective on shares of Mondelez International in a research report on Thursday, February 1st. Finally, Bank of America increased their price objective on shares of Mondelez International from $50.00 to $56.00 and gave the stock a buy rating in a research report on Thursday, February 1st. One equities research analyst has rated the stock with a sell rating, two have given a hold rating, thirteen have given a buy rating and one has issued a strong buy rating to the company’s stock. Mondelez International currently has an average rating of Buy and a consensus price target of $50.44.
Mondelez International (NASDAQ:MDLZ) last announced its earnings results on Wednesday, January 31st. The company reported $0.57 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.56 by $0.01. The firm had revenue of $6.97 billion for the quarter, compared to analysts’ expectations of $6.98 billion. Mondelez International had a net margin of 11.28% and a return on equity of 12.72%. The business’s revenue was up 2.9% compared to the same quarter last year. During the same period in the prior year, the company earned $0.47 EPS. equities analysts forecast that Mondelez International will post 2.47 EPS for the current fiscal year.
The business also recently announced a quarterly dividend, which will be paid on Thursday, April 12th. Stockholders of record on Thursday, March 29th will be given a dividend of $0.22 per share. This represents a $0.88 dividend on an annualized basis and a dividend yield of 2.17%. The ex-dividend date is Wednesday, March 28th. Mondelez International’s dividend payout ratio (DPR) is presently 46.07%.
Mondelez International declared that its Board of Directors has approved a share buyback program on Wednesday, January 31st that authorizes the company to buyback $6.00 billion in outstanding shares. This buyback authorization authorizes the company to repurchase shares of its stock through open market purchases. Shares buyback programs are usually an indication that the company’s board believes its stock is undervalued.
In other news, EVP Hubert Weber sold 10,931 shares of the firm’s stock in a transaction that occurred on Friday, February 23rd. The shares were sold at an average price of $43.79, for a total transaction of $478,668.49. Following the transaction, the executive vice president now directly owns 160,865 shares of the company’s stock, valued at $7,044,278.35. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Director Trian Fund Management, L.P. bought 1,028,600 shares of Mondelez International stock in a transaction dated Friday, March 9th. The shares were bought at an average cost of $44.27 per share, for a total transaction of $45,536,122.00. The disclosure for this purchase can be found here. Company insiders own 3.60% of the company’s stock.
Large investors have recently modified their holdings of the company. Bank of Nova Scotia Trust Co. purchased a new position in shares of Mondelez International during the third quarter worth approximately $113,000. Cerebellum GP LLC bought a new position in shares of Mondelez International during the fourth quarter valued at approximately $127,000. Taylor Hoffman Wealth Management bought a new position in shares of Mondelez International during the fourth quarter valued at approximately $144,000. Banco de Sabadell S.A bought a new position in shares of Mondelez International during the fourth quarter valued at approximately $148,000. Finally, Delpha Capital Management LLC bought a new position in shares of Mondelez International during the fourth quarter valued at approximately $152,000. 75.84% of the stock is currently owned by institutional investors and hedge funds.
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About Mondelez International
Mondelez International, Inc, through its subsidiaries, manufactures and markets snack food and beverage products worldwide. It offers biscuits, including cookies, crackers, and salted snacks; chocolates; gums and candies; coffee and powdered beverages; and cheese and grocery products. The company's primary snack brand portfolio includes Nabisco, Oreo, LU, and belVita biscuits; Cadbury, Milka, Cadbury Dairy Milk, and Toblerone chocolates; Trident gums; Halls candies; and Tang powdered beverages.
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