Traders Buy High Volume of Albertsons Companies Call Options (NYSE:ACI)

Albertsons Companies, Inc. (NYSE:ACI) was the target of unusually large options trading activity on Monday. Stock investors acquired 4,588 call options on the stock. This represents an increase of approximately 41% compared to the average daily volume of 3,259 call options.

Analysts Set New Price Targets

A number of research analysts have issued reports on ACI shares. The Goldman Sachs Group decreased their target price on shares of Albertsons Companies from $24.00 to $16.00 and set a “buy” rating on the stock in a research report on Friday. UBS Group dropped their price target on shares of Albertsons Companies from $23.00 to $20.00 and set a “buy” rating for the company in a research report on Wednesday, April 15th. Royal Bank Of Canada cut their price target on Albertsons Companies from $20.00 to $13.00 and set an “outperform” rating for the company in a research note on Friday. BMO Capital Markets downgraded Albertsons Companies from an “outperform” rating to a “market perform” rating and reduced their price target for the stock from $23.00 to $12.00 in a research report on Friday. Finally, Barclays lowered their price objective on Albertsons Companies from $17.00 to $12.00 and set an “underweight” rating on the stock in a research note on Friday. Six equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and three have issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $15.92.

Key Albertsons Companies News

Here are the key news stories impacting Albertsons Companies this week:

• Positive Sentiment: A Seeking Alpha contributor upgraded Albertsons, arguing that the company’s turnaround expectations are already “priced for failure.” The thesis suggests that operational improvements or better-than-feared results could provide upside from depressed valuation levels. Albertsons: The Turnaround Is Priced For Failure (Rating Upgrade)
• Positive Sentiment: Investors purchased approximately 4,588 ACI call options, about 41% above typical call volume. The activity may indicate speculative bullish interest, although options volume alone does not guarantee a sustained rally.

Albertsons Companies Price Performance

ACI stock traded up $0.34 during midday trading on Monday, reaching $11.38. The company had a trading volume of 13,753,343 shares, compared to its average volume of 7,682,275. Albertsons Companies has a 1-year low of $10.86 and a 1-year high of $20.05. The stock has a 50 day moving average price of $14.83 and a 200-day moving average price of $16.35. The company has a debt-to-equity ratio of 5.22, a current ratio of 0.84 and a quick ratio of 0.21. The company has a market capitalization of $5.57 billion, a price-to-earnings ratio of 142.19, a price-to-earnings-growth ratio of 1.17 and a beta of 0.42.

Albertsons Companies (NYSE:ACI) last announced its quarterly earnings data on Thursday, July 23rd. The company reported $0.42 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.54 by ($0.12). Albertsons Companies had a return on equity of 45.59% and a net margin of 0.08%.The firm had revenue of $24.94 billion for the quarter, compared to analyst estimates of $24.84 billion. During the same quarter in the previous year, the company earned $0.55 earnings per share. The company’s quarterly revenue was up .2% on a year-over-year basis. Albertsons Companies has set its FY 2026 guidance at 1.750-1.850 EPS. Equities research analysts expect that Albertsons Companies will post 2.11 earnings per share for the current year.

Albertsons Companies Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, August 7th. Stockholders of record on Friday, July 24th will be issued a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a dividend yield of 6.0%. The ex-dividend date of this dividend is Friday, July 24th. Albertsons Companies’s dividend payout ratio is 850.00%.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its position in Albertsons Companies by 14.9% during the fourth quarter. Vanguard Group Inc. now owns 39,330,507 shares of the company’s stock valued at $675,305,000 after purchasing an additional 5,110,777 shares in the last quarter. Norges Bank bought a new stake in Albertsons Companies during the fourth quarter worth $388,089,000. Dimensional Fund Advisors LP boosted its holdings in shares of Albertsons Companies by 11.8% in the 1st quarter. Dimensional Fund Advisors LP now owns 15,013,525 shares of the company’s stock valued at $255,855,000 after purchasing an additional 1,583,741 shares in the last quarter. Morgan Stanley boosted its holdings in shares of Albertsons Companies by 101.0% in the 4th quarter. Morgan Stanley now owns 11,687,694 shares of the company’s stock valued at $200,678,000 after purchasing an additional 5,873,759 shares in the last quarter. Finally, LSV Asset Management increased its stake in shares of Albertsons Companies by 1.7% in the 4th quarter. LSV Asset Management now owns 11,130,407 shares of the company’s stock valued at $191,109,000 after purchasing an additional 183,900 shares during the last quarter. 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.