Albertsons Companies (NYSE:ACI) Shares Up 5% – Still a Buy?

Albertsons Companies, Inc. (NYSE:ACI)’s stock price shot up 5% during mid-day trading on Tuesday . The company traded as high as $17.69 and last traded at $17.6490. 1,855,361 shares were traded during mid-day trading, a decline of 74% from the average session volume of 7,076,243 shares. The stock had previously closed at $16.81.

Analysts Set New Price Targets

Several analysts have issued reports on the stock. Citigroup decreased their price target on shares of Albertsons Companies from $26.00 to $22.00 and set a “buy” rating on the stock in a research report on Wednesday, April 15th. UBS Group decreased their price target on shares of Albertsons Companies from $23.00 to $20.00 and set a “buy” rating on the stock in a research report on Wednesday, April 15th. Royal Bank Of Canada restated an “outperform” rating and issued a $21.00 price target on shares of Albertsons Companies in a research report on Monday, April 6th. JPMorgan Chase & Co. decreased their price target on shares of Albertsons Companies from $23.00 to $22.00 and set an “overweight” rating on the stock in a research report on Wednesday, April 15th. Finally, Weiss Ratings lowered shares of Albertsons Companies from a “hold (c)” rating to a “hold (c-)” rating in a research report on Tuesday, April 21st. Ten research analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, Albertsons Companies currently has an average rating of “Hold” and an average price target of $21.31.

Albertsons Companies Stock Down 4.7%

The company has a debt-to-equity ratio of 4.58, a quick ratio of 0.20 and a current ratio of 0.86. The company has a market capitalization of $8.04 billion, a price-to-earnings ratio of 50.80, a price-to-earnings-growth ratio of 1.97 and a beta of 0.43. The firm’s 50-day simple moving average is $16.88 and its 200-day simple moving average is $17.31.

Albertsons Companies (NYSE:ACI) last issued its earnings results on Tuesday, April 14th. The company reported $0.48 earnings per share for the quarter, beating the consensus estimate of $0.43 by $0.05. Albertsons Companies had a net margin of 0.26% and a return on equity of 42.75%. The business had revenue of $20.25 billion for the quarter, compared to analyst estimates of $20.49 billion. During the same period in the previous year, the business earned $0.46 EPS. The firm’s revenue was up 7.7% on a year-over-year basis. Albertsons Companies has set its FY 2026 guidance at 2.220-2.320 EPS. Sell-side analysts forecast that Albertsons Companies, Inc. will post 2.11 earnings per share for the current year.

Albertsons Companies Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, May 8th. Stockholders of record on Friday, April 24th were given a dividend of $0.17 per share. This is an increase from Albertsons Companies’s previous quarterly dividend of $0.15. The ex-dividend date was Friday, April 24th. This represents a $0.68 annualized dividend and a dividend yield of 4.2%. Albertsons Companies’s dividend payout ratio (DPR) is presently 212.50%.

Hedge Funds Weigh In On Albertsons Companies

Several institutional investors have recently added to or reduced their stakes in the company. AlphaQuest LLC bought a new position in Albertsons Companies during the 3rd quarter worth approximately $1,492,000. Towle & Co. boosted its stake in Albertsons Companies by 674.2% during the 3rd quarter. Towle & Co. now owns 339,227 shares of the company’s stock worth $5,940,000 after acquiring an additional 295,413 shares during the last quarter. Counterpoint Mutual Funds LLC bought a new position in Albertsons Companies during the 3rd quarter worth approximately $2,307,000. Vanguard Group Inc. boosted its stake in Albertsons Companies by 14.9% during the 4th quarter. Vanguard Group Inc. now owns 39,330,507 shares of the company’s stock worth $675,305,000 after acquiring an additional 5,110,777 shares during the last quarter. Finally, AGF Management Ltd. bought a new position in Albertsons Companies during the 3rd quarter worth approximately $2,955,000. 71.35% of the stock is owned by institutional investors.

Albertsons Companies Company Profile

Albertsons Companies, Inc (NYSE: ACI) is one of the largest food and drug retailers in the United States, operating a diversified portfolio of grocery store banners. Founded in 1939 by Joe Albertson in Boise, Idaho, the company has grown through both organic expansion and strategic acquisitions. Its core business activities encompass the sale of fresh produce, meat, bakery items, deli offerings, pharmacy services, and general merchandise. The company’s retail operations are complemented by an in-house private-label program, featuring brands such as O Organics, Open Nature, and Lucerne, which cater to a range of customer preferences and price points.

Throughout its history, Albertsons Companies has pursued growth via mergers and partnerships.