Published On: Thu, Sep 15th, 2016

TreeHouse Foods Inc. (THS) Stock Rating Lowered by Zacks Investment Research

TreeHouse Foods Inc. (NYSE:THS) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Thursday.
According to Zacks, “Estimates have been declining since TreeHouse reported second quarter earnings release, as the company expects weakness ahead. While the company posted better-than-expected earnings, it declined 18.2% from the year-ago level due to lower gross margin and currency headwinds. Net sales also missed the Zacks Consensus Estimate by 2.5% due to the lower margin structure of the acquired business of private brands. Though the company is in the process of cutting costs and improving efficiency, the company anticipates the overall food industry to face weakness and expects revenues for the industry to remain flat. Foreign exchange headwinds will also continue to challenge margins.”
THS has been the topic of several other research reports. BMO Capital Markets reiterated a “market perform” rating and set a $98.00 price objective on shares of TreeHouse Foods in a research report on Friday, August 5th. KeyCorp started coverage on TreeHouse Foods in a research report on Wednesday, May 25th. They set an “overweight” rating and a $110.00 price objective on the stock. Jefferies Group increased their price objective on TreeHouse Foods from $110.00 to $115.00 and gave the stock a “buy” rating in a research report on Friday, July 15th. Susquehanna reiterated a “buy” rating on shares of TreeHouse Foods in a research report on Sunday, July 17th. Finally, JPMorgan Chase & Co. set a $119.00 price objective on TreeHouse Foods and gave the stock a “buy” rating in a research report on Friday, August 5th. Three investment analysts have rated the stock with a hold rating and six have assigned a buy rating to the company’s stock. The stock presently has a consensus rating of “Buy” and an average price target of $105.25.

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TreeHouse Foods (NYSE:THS) opened at 86.66 on Thursday. The company has a market cap of $4.92 billion, a price-to-earnings ratio of 55.20 and a beta of 0.20. The stock has a 50 day moving average of $96.50 and a 200-day moving average of $93.33. TreeHouse Foods has a 52-week low of $66.30 and a 52-week high of $104.53.
TreeHouse Foods (NYSE:THS) last announced its quarterly earnings results on Thursday, August 4th. The company reported $0.54 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.54. TreeHouse Foods had a return on equity of 6.18% and a net margin of 1.74%. The business earned $1.50 billion during the quarter, compared to the consensus estimate of $1.58 billion. During the same quarter last year, the firm posted $0.66 EPS. The company’s quarterly revenue was up 103.0% on a year-over-year basis. On average, analysts forecast that TreeHouse Foods will post $3.07 EPS for the current year.
In related news, VP Thomas Emmet Oneill III sold 6,000 shares of the firm’s stock in a transaction dated Friday, August 19th. The stock was sold at an average price of $97.00, for a total value of $582,000.00. Following the sale, the vice president now directly owns 145,138 shares of the company’s stock, valued at $14,078,386. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Ann Sardini sold 3,830 shares of the firm’s stock in a transaction dated Wednesday, June 29th. The shares were sold at an average price of $98.77, for a total value of $378,289.10. Following the completion of the sale, the director now directly owns 4,020 shares in the company, valued at $397,055.40. The disclosure for this sale can be found here. 3.40% of the stock is owned by corporate insiders.
Hedge funds have recently added to or reduced their stakes in the stock. Advisor Group Inc. purchased a new stake in shares of TreeHouse Foods during the second quarter worth approximately $187,000. DIAM Co. Ltd. purchased a new stake in shares of TreeHouse Foods during the second quarter worth approximately $195,000. Independence Advisors LLC purchased a new stake in shares of TreeHouse Foods during the second quarter worth approximately $205,000. Seven Eight Capital LLC raised its stake in shares of TreeHouse Foods by 5,833.3% in the second quarter. Seven Eight Capital LLC now owns 2,136 shares of the company’s stock worth $219,000 after buying an additional 2,100 shares during the last quarter. Finally, M&T Bank Corp purchased a new stake in shares of TreeHouse Foods during the second quarter worth approximately $222,000. 84.69% of the stock is currently owned by institutional investors and hedge funds.
About TreeHouse Foods
TreeHouse Foods, Inc is a consumer packaged food and beverage manufacturing company. The Company’s segments include North American Retail Grocery, Food Away From Home, and Industrial and Export. It manufactures a range of shelf stable, refrigerated and fresh products. Its product categories include beverages, salad dressings, snacks, beverage enhancers, pickles, Mexican and other sauces, soup and infant feeding, cereals, dry dinners, aseptic products, jams and other products.
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