Zacks Research Downgrades Albertsons Companies (NYSE:ACI) to Strong Sell

Albertsons Companies (NYSE:ACI) was downgraded by equities researchers at Zacks Research from a “hold” rating to a “strong sell” rating in a research report issued to clients and investors on Tuesday,Zacks.com reports.

Several other analysts have also issued reports on the company. Royal Bank Of Canada dropped their target price on Albertsons Companies from $20.00 to $13.00 and set an “outperform” rating on the stock in a report on Friday, July 24th. JPMorgan Chase & Co. decreased their price target on Albertsons Companies from $20.00 to $14.00 and set an “overweight” rating for the company in a research note on Friday, July 24th. BMO Capital Markets lowered Albertsons Companies from an “outperform” rating to a “market perform” rating and lowered their price target for the stock from $23.00 to $12.00 in a research report on Friday, July 24th. UBS Group reiterated a “neutral” rating and set a $12.00 price objective (down from $20.00) on shares of Albertsons Companies in a research note on Tuesday. Finally, Citigroup reissued a “neutral” rating and issued a $11.00 price objective (down from $17.00) on shares of Albertsons Companies in a report on Monday. Five investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and four have given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $15.31.

Albertsons Companies Stock Up 4.3%

Shares of ACI stock opened at $12.07 on Tuesday. The company has a current ratio of 0.84, a quick ratio of 0.21 and a debt-to-equity ratio of 5.22. Albertsons Companies has a 1 year low of $10.86 and a 1 year high of $20.02. The firm’s fifty day moving average price is $14.51 and its two-hundred day moving average price is $16.25. The firm has a market capitalization of $5.91 billion, a P/E ratio of 150.94, a PEG ratio of 1.99 and a beta of 0.42.

Albertsons Companies (NYSE:ACI) last issued its quarterly earnings results on Thursday, July 23rd. The company reported $0.42 EPS for the quarter, missing the consensus estimate of $0.54 by ($0.12). Albertsons Companies had a return on equity of 45.59% and a net margin of 0.08%.The business had revenue of $24.94 billion for the quarter, compared to the consensus estimate of $24.84 billion. During the same period last year, the firm earned $0.55 earnings per share. The company’s quarterly revenue was up .2% compared to the same quarter last year. Albertsons Companies has set its FY 2026 guidance at 1.750-1.850 EPS. On average, equities analysts predict that Albertsons Companies will post 1.64 EPS for the current fiscal year.

Insiders Place Their Bets

In other Albertsons Companies news, EVP Thomas M. Moriarty purchased 170,500 shares of the stock in a transaction on Monday, July 27th. The shares were purchased at an average price of $11.51 per share, with a total value of $1,962,455.00. Following the completion of the transaction, the executive vice president directly owned 308,946 shares in the company, valued at $3,555,968.46. This represents a 123.15% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. 1.18% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. E. Ohman J or Asset Management AB increased its holdings in shares of Albertsons Companies by 14.0% during the 2nd quarter. E. Ohman J or Asset Management AB now owns 2,321,294 shares of the company’s stock worth $31,407,000 after acquiring an additional 285,280 shares during the last quarter. GAMMA Investing LLC lifted its holdings in Albertsons Companies by 58.3% during the 2nd quarter. GAMMA Investing LLC now owns 10,233 shares of the company’s stock valued at $138,000 after purchasing an additional 3,768 shares during the last quarter. Value Investment Professionals LLC boosted its position in Albertsons Companies by 21.8% during the second quarter. Value Investment Professionals LLC now owns 66,006 shares of the company’s stock worth $893,000 after purchasing an additional 11,816 shares during the period. Versant Capital Management Inc increased its holdings in shares of Albertsons Companies by 2,406.4% in the second quarter. Versant Capital Management Inc now owns 5,113 shares of the company’s stock valued at $69,000 after purchasing an additional 4,909 shares during the last quarter. Finally, Empowered Funds LLC increased its holdings in shares of Albertsons Companies by 121.9% in the first quarter. Empowered Funds LLC now owns 42,274 shares of the company’s stock valued at $720,000 after purchasing an additional 23,227 shares during the last quarter. 71.35% of the stock is currently owned by institutional investors.

Key Headlines Impacting Albertsons Companies

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

• Positive Sentiment: Insider buying provided a confidence signal. Executive Vice President Thomas Moriarty purchased 170,500 shares for approximately $2.0 million at an average price of $11.51, more than doubling his direct stake. Thomas Moriarty buys Albertsons shares
• Positive Sentiment: Cost-saving and digital initiatives offer potential upside. ACI Edge is expected to generate about $200 million in savings, while Albertsons is using artificial intelligence, digital sales and its 51.2 million-member loyalty program to improve personalization and efficiency. Execution will determine whether these investments translate into stronger earnings. Albertsons ACI Edge savings Albertsons AI digital and loyalty strategy
• Neutral Sentiment: Valuation is attracting deep-value interest. ACI trades near multi-year valuation lows after a steep 2026 sell-off, but investors remain divided over whether the discount adequately reflects weaker profitability and execution risks. Albertsons deep-value analysis
• Negative Sentiment: Analyst sentiment remains cautious. UBS downgraded Albertsons to Hold and cut its price target to $12 from $20, while Citigroup reaffirmed Neutral. The analyst actions reflect uncertainty about the company’s recovery and leave limited near-term upside.
• Negative Sentiment: The earnings reset remains the primary overhang. Albertsons reported quarterly EPS of $0.42 versus the $0.54 consensus estimate and reduced fiscal 2026 adjusted EPS guidance to $1.75–$1.85 from $2.22–$2.32. Margin pressure, weak grocery trends, high leverage and a 0.08% net margin further complicate the turnaround. Albertsons fiscal 2026 reset
• Negative Sentiment: Investor investigations add legal risk. Law firms, including Levi & Korsinsky, announced investigations into whether investors were misled about sales and earnings guidance. The notices do not establish wrongdoing but may increase reputational and litigation concerns. Albertsons investor investigation alert

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.