Zacks Investment Research upgraded shares of SuperValu (NYSE:SVU) from a sell rating to a hold rating in a research report report published on Monday.
According to Zacks, “SUPERVALU has lagged the industry in a year due to persistent softness at its retail segment, which has been grappling with price competition, competitive store openings and intense promotions. Owing to such factors the company has been witnessing identical store sales decline in the retail segment for the past 11 quarters. The company has also been struggling with dismal gross margin trends, stemming from unfavorable business mix. Nevertheless, the company continues to focus on strengthening its Wholesale unit, as evident from its buyout of AG of Florida and ongoing integration of Unified Grocers. This, along with efficient cost management acted as cushion, helping the company deliver growth in the third quarter. Going ahead, the company plans to augment Wholesale segments operations by adding new customers, retaining and developing business with existing customers and acquisitions. Also, its e-commerce efforts, like Instacart deal bode well.”
Other research analysts also recently issued research reports about the stock. Royal Bank of Canada set a $34.00 price objective on shares of SuperValu and gave the stock a buy rating in a research report on Thursday, January 11th. ValuEngine upgraded shares of SuperValu from a hold rating to a buy rating in a research report on Thursday, December 7th. Finally, Telsey Advisory Group reiterated a market perform rating and issued a $18.00 price objective (down previously from $24.00) on shares of SuperValu in a research report on Thursday, January 11th. Two equities research analysts have rated the stock with a sell rating, eight have assigned a hold rating and two have given a buy rating to the stock. The stock presently has a consensus rating of Hold and an average price target of $23.44.
SuperValu (NYSE:SVU) last issued its quarterly earnings data on Wednesday, January 10th. The company reported $0.61 earnings per share for the quarter, topping analysts’ consensus estimates of $0.48 by $0.13. The business had revenue of $3.94 billion during the quarter, compared to the consensus estimate of $4 billion. SuperValu had a net margin of 4.17% and a return on equity of 26.48%. The company’s revenue was up 31.2% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.35 earnings per share. equities analysts predict that SuperValu will post 2.43 EPS for the current fiscal year.
Several hedge funds have recently added to or reduced their stakes in the company. Cambridge Investment Research Advisors Inc. increased its stake in shares of SuperValu by 27.2% during the fourth quarter. Cambridge Investment Research Advisors Inc. now owns 31,367 shares of the company’s stock worth $678,000 after purchasing an additional 6,699 shares in the last quarter. Envestnet Asset Management Inc. increased its stake in shares of SuperValu by 13.0% during the fourth quarter. Envestnet Asset Management Inc. now owns 189,291 shares of the company’s stock worth $4,088,000 after purchasing an additional 21,836 shares in the last quarter. J. Goldman & Co LP purchased a new stake in shares of SuperValu during the fourth quarter worth about $1,874,000. MetLife Investment Advisors LLC purchased a new stake in shares of SuperValu during the fourth quarter worth about $378,000. Finally, Metropolitan Life Insurance Co. NY purchased a new stake in shares of SuperValu during the fourth quarter worth about $274,000. 90.56% of the stock is owned by institutional investors and hedge funds.
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SuperValu Company Profile
SUPERVALU INC., together with its subsidiaries, operates as a grocery wholesaler and retailer in the United States. The company operates through two segments, Wholesale and Retail. The Wholesale segment engages in the wholesale distribution of various food and non-food products to independent retail customers, such as single and multiple grocery store operators, regional chains, and the military.
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