Campbell’s (NASDAQ:CPB) Shares Gap Down – What’s Next?

The Campbell’s Company (NASDAQ:CPB) gapped down before the market opened on Thursday . The stock had previously closed at $23.78, but opened at $22.32. Campbell’s shares last traded at $21.5880, with a volume of 8,700,171 shares changing hands.

Campbell’s News Summary

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

• Positive Sentiment: Management announced a plan targeting approximately $500 million in savings, including workforce reductions and other cost actions. The initiative is intended to repair margins and accelerate debt reduction. Campbell’s slashes 13% of salaried workforce as part of $500M cost-cutting plan
• Positive Sentiment: Campbell’s plans to discuss its business and outlook at a Barclays Global Consumer Staples Conference fireside chat on September 9, giving investors an opportunity to hear more about the turnaround strategy. Campbell’s Barclays conference announcement

Analyst Ratings Changes

Several analysts recently commented on CPB shares. DA Davidson raised Campbell’s to a “hold” rating in a report on Monday, July 6th. William Blair began coverage on Campbell’s in a research report on Tuesday, June 23rd. They issued a “market perform” rating on the stock. JPMorgan Chase & Co. lifted their target price on shares of Campbell’s from $20.00 to $22.00 and gave the company a “neutral” rating in a report on Tuesday, August 18th. Wall Street Zen cut shares of Campbell’s from a “hold” rating to a “sell” rating in a research note on Saturday. Finally, Bank of America lowered their price target on shares of Campbell’s from $20.00 to $18.00 and set an “underperform” rating on the stock in a report on Tuesday, June 9th. Thirteen research analysts have rated the stock with a Hold rating and six have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Reduce” and an average target price of $19.94.

Campbell’s Trading Down 3.4%

The firm has a market capitalization of $6.38 billion, a price-to-earnings ratio of 16.32, a P/E/G ratio of 2.54 and a beta of 0.03. The company has a debt-to-equity ratio of 1.60, a quick ratio of 0.38 and a current ratio of 0.82. The company has a 50 day moving average price of $22.73 and a two-hundred day moving average price of $22.35.

Campbell’s (NASDAQ:CPB) last released its quarterly earnings results on Thursday, September 3rd. The company reported $0.39 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.39. The firm had revenue of $2.14 billion for the quarter. Campbell’s had a net margin of 4.04% and a return on equity of 16.44%. Campbell’s’s revenue was down 7.9% compared to the same quarter last year. During the same period in the prior year, the business posted $0.62 EPS. Campbell’s has set its FY 2027 guidance at 1.650-1.800 EPS. On average, research analysts forecast that The Campbell’s Company will post 1.74 EPS for the current year.

Campbell’s Cuts Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, November 2nd. Stockholders of record on Thursday, October 1st will be paid a dividend of $0.25 per share. The ex-dividend date of this dividend is Thursday, October 1st. This represents a $1.00 dividend on an annualized basis and a dividend yield of 4.7%. Campbell’s’s payout ratio is currently 77.23%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of CPB. Sittner & Nelson LLC purchased a new stake in Campbell’s during the 4th quarter worth approximately $29,000. Los Angeles Capital Management LLC acquired a new stake in shares of Campbell’s in the fourth quarter worth approximately $29,000. Ankerstar Wealth LLC acquired a new stake in shares of Campbell’s in the fourth quarter worth approximately $29,000. Comprehensive Financial Planning Inc. PA purchased a new stake in shares of Campbell’s during the second quarter worth approximately $31,000. Finally, IMA Advisory Services Inc. acquired a new position in Campbell’s in the 4th quarter valued at $33,000. 52.35% of the stock is owned by hedge funds and other institutional investors.

Campbell’s Company Profile

Campbell’s (NASDAQ: CPB) is a leading manufacturer of shelf-stable foods and beverages, best known for its iconic soups and broths. Headquartered in Camden, New Jersey, the company offers a diverse portfolio of products designed to meet consumer demand for convenient, affordable meals and snacks. Since its founding in 1869, Campbell’s has grown through a combination of organic innovation and strategic acquisitions to expand its presence in the food industry.

The company’s brand portfolio includes Campbell’s Condensed Soups, V8 juices, Prego pasta sauces, Swanson broths and stocks, Pace salsas and dips, and Pepperidge Farm baked snacks.