TreeHouse Foods Inc. (THS) Lowered to “Sell” at Zacks Investment Research
TreeHouse Foods Inc. (NYSE:THS) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors 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.”
THS has been the subject of several other reports. BMO Capital Markets restated a “market perform” rating and set a $98.00 price target on shares of TreeHouse Foods in a report on Friday, August 5th. Jefferies Group raised their price target on shares of TreeHouse Foods from $110.00 to $115.00 and gave the stock a “buy” rating in a report on Friday, July 15th. Susquehanna restated a “buy” rating on shares of TreeHouse Foods in a report on Sunday, July 17th. Finally, JPMorgan Chase & Co. set a $119.00 price target on shares of TreeHouse Foods and gave the stock a “buy” rating in a report on Friday, August 5th. One analyst has rated the stock with a sell rating, two have issued a hold rating and six have given a buy rating to the company. The company has a consensus rating of “Buy” and a consensus price target of $107.71.
Shares of 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’s 50-day moving average is $90.77 and its 200-day moving average is $93.55. The firm has a market capitalization of $5.01 billion, a price-to-earnings ratio of 56.23 and a beta of 0.40.
TreeHouse Foods (NYSE:THS) last announced its earnings results on Thursday, August 4th. The company reported $0.54 EPS for the quarter, hitting the consensus estimate of $0.54. TreeHouse Foods had a net margin of 1.74% and a return on equity of 6.18%. The company earned $1.50 billion during the quarter, compared to analysts’ expectations of $1.58 billion. During the same period last year, the company posted $0.66 earnings per share. The business’s revenue for the quarter was up 103.0% on a year-over-year basis. On average, equities analysts forecast that TreeHouse Foods will post $3.07 earnings per share for the current fiscal year.
In other news, VP Thomas Emmet Oneill III sold 6,000 shares of TreeHouse Foods stock in a transaction that occurred on Friday, August 19th. The shares were sold at an average price of $97.00, for a total value of $582,000.00. Following the transaction, the vice president now owns 145,138 shares of the company’s stock, valued at $14,078,386. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. 3.40% of the stock is currently owned by insiders.
Institutional investors have recently added to or reduced their stakes in the stock. Symons Capital Management Inc. raised its position in TreeHouse Foods by 0.6% in the second quarter. Symons Capital Management Inc. now owns 2,405 shares of the company’s stock worth $247,000 after buying an additional 15 shares in the last quarter. 1st Global Advisors Inc. raised its position 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 worth $496,000 after buying an additional 22 shares during the period. Suntrust Banks Inc. raised its position 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 worth $387,000 after buying an additional 51 shares during the period. State Treasurer State of Michigan raised its position 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 worth $2,320,000 after buying an additional 100 shares during the period. Finally, Calvert Investment Management Inc. raised its position 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 worth $441,000 after buying an additional 157 shares during the period. 84.69% of the stock is currently owned by institutional investors.
About TreeHouse Foods
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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