DA Davidson Lowers Mama’s Creations (NASDAQ:MAMA) Price Target to $22.00

Mama’s Creations (NASDAQ:MAMA) had its price objective decreased by analysts at DA Davidson from $25.00 to $22.00 in a research note issued to investors on Friday, Benzinga reports. The firm presently has a “buy” rating on the stock. DA Davidson’s price target points to a potential upside of 37.16% from the stock’s previous close.

A number of other research analysts have also recently weighed in on MAMA. William Blair started coverage on shares of Mama’s Creations in a research note on Friday, July 24th. They issued an “outperform” rating on the stock. Wall Street Zen cut shares of Mama’s Creations from a “buy” rating to a “hold” rating in a report on Sunday, July 12th. Zacks Research cut shares of Mama’s Creations from a “strong-buy” rating to a “hold” rating in a report on Tuesday, July 28th. Benchmark began coverage on Mama’s Creations in a research note on Tuesday, July 21st. They issued a “buy” rating and a $25.00 price objective on the stock. Finally, Weiss Ratings lowered Mama’s Creations from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday, August 19th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, Mama’s Creations currently has an average rating of “Moderate Buy” and a consensus target price of $19.33.

Mama’s Creations Stock Performance

Shares of Mama’s Creations stock traded up $0.08 during trading hours on Friday, hitting $16.04. 273,438 shares of the company’s stock traded hands, compared to its average volume of 502,650. The stock has a market capitalization of $656.68 million, a price-to-earnings ratio of 112.96 and a beta of 0.56. Mama’s Creations has a 12-month low of $8.67 and a 12-month high of $21.00. The company has a debt-to-equity ratio of 0.09, a current ratio of 2.32 and a quick ratio of 1.90. The company has a fifty day simple moving average of $17.62 and a 200-day simple moving average of $16.12.

Mama’s Creations (NASDAQ:MAMA) last issued its quarterly earnings results on Thursday, September 3rd. The company reported $0.06 earnings per share for the quarter, topping analysts’ consensus estimates of $0.05 by $0.01. Mama’s Creations had a net margin of 3.21% and a return on equity of 14.69%. The company had revenue of $54.58 million for the quarter, compared to the consensus estimate of $52.85 million. Equities research analysts anticipate that Mama’s Creations will post 0.24 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of MAMA. BlackRock Inc. purchased a new stake in shares of Mama’s Creations in the 2nd quarter valued at about $42,473,000. Vanguard Group Inc. raised its stake in Mama’s Creations by 0.4% in the third quarter. Vanguard Group Inc. now owns 1,893,943 shares of the company’s stock valued at $19,905,000 after purchasing an additional 7,254 shares in the last quarter. Next Century Growth Investors LLC raised its stake in Mama’s Creations by 54.5% in the fourth quarter. Next Century Growth Investors LLC now owns 1,691,395 shares of the company’s stock valued at $22,817,000 after purchasing an additional 596,688 shares in the last quarter. Jupiter Topco LLC bought a new stake in Mama’s Creations during the second quarter valued at approximately $23,880,000. Finally, Alyeska Investment Group L.P. lifted its position in Mama’s Creations by 137.5% during the second quarter. Alyeska Investment Group L.P. now owns 950,000 shares of the company’s stock valued at $16,958,000 after purchasing an additional 550,000 shares during the last quarter. 45.18% of the stock is owned by institutional investors.

Mama’s Creations News Summary

Here are the key news stories impacting Mama’s Creations this week:

• Positive Sentiment: Strong quarterly growth: Revenue rose 55% year over year to $54.6 million, ahead of the $52.85 million consensus estimate. Diluted EPS increased to $0.06 from $0.03 and topped expectations of $0.05. Mama’s Creations Reports Second Quarter Fiscal 2027 Financial Results
• Positive Sentiment: Profitability improved: Net income more than doubled to $2.6 million, while adjusted EBITDA climbed 69% to $5.5 million. Operating expenses declined as a percentage of revenue, and adjusted EBITDA margin expanded to 10.1% from 9.3% a year earlier. Mama’s Creations Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Retail momentum continued: Mama’s added more than a dozen product placements, was selected for Costco’s national second-half multi-vendor mailer across all eight regions, and plans its first Kroger launch in more than 100 stores. Additional placements are planned with Albertsons, BJ’s, Sam’s Club, Ahold, Food Lion and other retailers.
• Positive Sentiment: Greater financial flexibility: Cash reached $138.6 million, supported by $11.9 million of operating cash flow and approximately $108.6 million in net proceeds from a July stock offering. Management said the strengthened balance sheet improves its ability to pursue accretive acquisitions and supports its longer-term path toward $1 billion in revenue and mid- to high-20% gross margins. Mama’s Creations Signals Sharper Line of Sight to $1 Billion Revenue
• Neutral Sentiment: Margin remains a watch point: Gross margin was 24.0%, below 24.9% a year ago, although it improved sequentially from 23.6% as recent product launches moved toward steady-state production.
• Negative Sentiment: Share dilution and valuation risk: The stock offering substantially increased cash but also expanded the share count. With MAMA trading at a high earnings multiple, investors may require continued rapid growth and successful acquisitions to justify the valuation.

About Mama’s Creations

Mama’s Creations, Inc engages in the marketing, manufacturing, and distribution of beef meatballs with sauce, turkey meatballs with sauce, beef meat loaf, sausage and peppers, chicken parmesan, and other similar meats and sauces. Its products include beef meatballs, turkey meatballs, stuffed meatballs, lasagna roll ups, retail ready meals, bulk deli, single-size pasta bowls, and packaged refrigerated products. Its brands include MamaMancini’s, Creative Salads, and The Olive Branch. The company was founded by Daniel Dougherty on July 22, 2009 and is headquartered in East Rutherford, NJ.