Zacks Investment Research lowered shares of TreeHouse Foods (NYSE:THS) from a hold rating to a strong sell rating in a research note issued to investors on Monday, February 19th.
According to Zacks, “TreeHouse Foods, which has lagged the industry in a year, has been bearing the brunt of pricing pressure stemming from stiff competition in the grocery industry. This, along with commodity cost inflation and rising freight costs has been marring TreeHouse Foods’ DOI margin for a while now. This was reflected in fourth-quarter 2017 results, which marked the company’s third straight quarter of year-over-year earnings and sales decline. Apart from strained margins, results were hurt by the sale of SIF business. Unfortunately, management expects these hurdles to persist in 2018, which is evident from its drab view. Nonetheless, the company remains on track with TreeHouse 2020 plan that aims to boost operating margin by 300 bps by the end of 2020, through complete business integration and cost reduction. Also, TreeHouse completed a review of its SG&A and related costs and expects 2018 savings of roughly $30 million.”
A number of other equities analysts also recently commented on THS. Credit Suisse Group set a $68.00 target price on TreeHouse Foods and gave the company a neutral rating in a report on Tuesday, October 31st. JPMorgan Chase & Co. downgraded TreeHouse Foods from a neutral rating to an underweight rating and set a $38.00 target price for the company. in a report on Friday, November 3rd. Susquehanna Bancshares set a $44.00 price objective on TreeHouse Foods and gave the stock a hold rating in a report on Monday, February 12th. Jefferies Group decreased their price objective on TreeHouse Foods from $90.00 to $68.00 and set a buy rating for the company in a report on Monday, November 6th. Finally, William Blair downgraded TreeHouse Foods from an outperform rating to a market perform rating in a report on Thursday, November 2nd. Three analysts have rated the stock with a sell rating, thirteen have assigned a hold rating and four have assigned a buy rating to the company’s stock. The company currently has a consensus rating of Hold and a consensus target price of $53.51.
Shares of TreeHouse Foods (NYSE:THS) traded down $0.29 during trading on Monday, hitting $42.70. The company had a trading volume of 489,502 shares, compared to its average volume of 977,502. The company has a debt-to-equity ratio of 1.12, a quick ratio of 0.94 and a current ratio of 2.48. The company has a market capitalization of $2,421.15, a P/E ratio of -8.62, a PEG ratio of 4.15 and a beta of 0.60. TreeHouse Foods has a one year low of $36.35 and a one year high of $90.42.
TreeHouse Foods (NYSE:THS) last announced its earnings results on Thursday, February 15th. The company reported $1.02 EPS for the quarter, beating analysts’ consensus estimates of $0.93 by $0.09. The company had revenue of $1.70 billion during the quarter, compared to the consensus estimate of $1.70 billion. TreeHouse Foods had a positive return on equity of 6.49% and a negative net margin of 4.54%. The firm’s revenue for the quarter was down 4.3% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.14 earnings per share. equities analysts predict that TreeHouse Foods will post 2.09 EPS for the current year.
In other news, CEO Sam K. Reed sold 11,480 shares of the stock in a transaction on Wednesday, March 7th. The stock was sold at an average price of $41.44, for a total value of $475,731.20. Following the sale, the chief executive officer now directly owns 81,147 shares of the company’s stock, valued at $3,362,731.68. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, VP Thomas Emmet Oneill III sold 36,100 shares of the stock in a transaction on Tuesday, March 6th. The stock was sold at an average price of $42.02, for a total value of $1,516,922.00. Following the completion of the sale, the vice president now directly owns 168,479 shares in the company, valued at $7,079,487.58. The disclosure for this sale can be found here. Over the last three months, insiders sold 70,540 shares of company stock worth $3,050,650. Insiders own 3.60% of the company’s stock.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Citigroup Inc. boosted its position in shares of TreeHouse Foods by 120.6% during the second quarter. Citigroup Inc. now owns 1,286 shares of the company’s stock valued at $105,000 after buying an additional 703 shares during the last quarter. Sterling Capital Management LLC boosted its position in shares of TreeHouse Foods by 0.5% during the second quarter. Sterling Capital Management LLC now owns 3,047 shares of the company’s stock valued at $249,000 after buying an additional 14 shares during the last quarter. ZWJ Investment Counsel Inc. purchased a new stake in shares of TreeHouse Foods during the third quarter valued at $212,000. Zions Bancorporation purchased a new stake in shares of TreeHouse Foods during the third quarter valued at $212,000. Finally, Balter Liquid Alternatives LLC purchased a new stake in shares of TreeHouse Foods during the fourth quarter valued at $174,000.
About TreeHouse Foods
TreeHouse Foods, Inc is a consumer packaged food and beverage manufacturer. The Company’s segments include North American Retail Grocery, Food Away From Home, and Industrial and Export. The Company manufactures a range of shelf stable, refrigerated, fresh and frozen products. Its product categories include beverages, salad dressings, snack nuts, beverage enhancers, pickles, sauces, cereals, pasta and dry dinners, cookies and crackers, retail bakery, aseptic products, jams and other products.
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