Traders Buy Campbell Soup Company (CPB) on Weakness After Earnings Miss

Traders purchased shares of Campbell Soup Company (NYSE:CPB) on weakness during trading hours on Tuesday following a weaker than expected earnings announcement. $132.03 million flowed into the stock on the tick-up and $88.38 million flowed out of the stock on the tick-down, for a money net flow of $43.65 million into the stock. Of all stocks tracked, Campbell Soup had the 6th highest net in-flow for the day. Campbell Soup traded down ($4.09) for the day and closed at $45.84The company reported $0.92 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.97 by ($0.05). Campbell Soup had a return on equity of 59.84% and a net margin of 11.24%. The firm had revenue of $2.16 billion during the quarter, compared to the consensus estimate of $2.17 billion. During the same period in the previous year, the company posted $1.00 EPS. The firm’s revenue for the quarter was down 1.9% compared to the same quarter last year.

The company also recently announced a quarterly dividend, which will be paid on Monday, January 29th. Stockholders of record on Wednesday, January 10th will be issued a $0.35 dividend. This represents a $1.40 annualized dividend and a dividend yield of 3.05%. The ex-dividend date of this dividend is Tuesday, January 9th. Campbell Soup’s payout ratio is 48.44%.

A number of brokerages have commented on CPB. Credit Suisse Group reissued a “sell” rating and set a $43.00 price objective (down previously from $47.00) on shares of Campbell Soup in a report on Friday, September 1st. Barclays PLC reissued a “sell” rating on shares of Campbell Soup in a report on Tuesday, July 25th. Royal Bank Of Canada decreased their price objective on shares of Campbell Soup from $60.00 to $56.00 and set a “sector perform” rating on the stock in a report on Friday, September 1st. Zacks Investment Research raised shares of Campbell Soup from a “sell” rating to a “hold” rating in a report on Tuesday, August 29th. Finally, UBS AG reissued a “sell” rating and set a $46.00 price objective (down previously from $50.00) on shares of Campbell Soup in a report on Friday, September 1st. Seven analysts have rated the stock with a sell rating, seven have given a hold rating and one has issued a buy rating to the company’s stock. Campbell Soup presently has a consensus rating of “Hold” and an average price target of $50.45.

In other news, Director Charles R. Perrin sold 2,304 shares of the firm’s stock in a transaction that occurred on Friday, October 6th. The shares were sold at an average price of $46.46, for a total transaction of $107,043.84. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Luca Mignini purchased 4,300 shares of the firm’s stock in a transaction dated Wednesday, September 27th. The shares were acquired at an average cost of $46.47 per share, with a total value of $199,821.00. Following the completion of the purchase, the insider now directly owns 88,178 shares in the company, valued at $4,097,631.66. The disclosure for this purchase can be found here. Company insiders own 37.20% of the company’s stock.

Several institutional investors and hedge funds have recently modified their holdings of CPB. Motco grew its stake in shares of Campbell Soup by 301.9% during the 2nd quarter. Motco now owns 2,130 shares of the company’s stock worth $111,000 after acquiring an additional 1,600 shares in the last quarter. First Personal Financial Services grew its stake in shares of Campbell Soup by 180.9% during the 3rd quarter. First Personal Financial Services now owns 2,677 shares of the company’s stock worth $125,000 after acquiring an additional 1,724 shares in the last quarter. Meeder Asset Management Inc. bought a new position in shares of Campbell Soup during the 3rd quarter worth approximately $175,000. Mercer Capital Advisers Inc. grew its stake in shares of Campbell Soup by 13.6% during the 2nd quarter. Mercer Capital Advisers Inc. now owns 3,374 shares of the company’s stock worth $176,000 after acquiring an additional 405 shares in the last quarter. Finally, Victory Capital Management Inc. grew its stake in shares of Campbell Soup by 6.1% during the 2nd quarter. Victory Capital Management Inc. now owns 3,733 shares of the company’s stock worth $195,000 after acquiring an additional 213 shares in the last quarter. 47.08% of the stock is owned by institutional investors.

The company has a debt-to-equity ratio of 1.52, a quick ratio of 0.42 and a current ratio of 0.79. The company has a market cap of $15,010.00, a P/E ratio of 16.46, a price-to-earnings-growth ratio of 3.65 and a beta of 0.38.

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Campbell Soup Company Profile

Campbell Soup Company is a food company, which manufactures and markets food products. The Company’s segments include Americas Simple Meals and Beverages; Global Biscuits and Snacks, and Campbell Fresh. The Americas Simple Meals and Beverages segment includes the retail and food service channel businesses.

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