B&G Foods Shares Diving Today: What's Going On?
Portfolio Pulse from Lekha Gupta
B&G Foods Inc's shares have dropped by around 11% following a downgrade by Piper Sandler analyst Michael S. Lavery from Neutral to Underweight, with a lowered price target of $8 from $14. The downgrade is due to the company's Q3 US measured retail sales declining by 11.5%, below analysts' expectations. Lavery also noted the risk of trade inventory de-loading due to lower volumes and the impact of retailers adjusting shelf space. BGS's new shares worth $75 million in Q3 have led to FY24 EPS dilution of $0.07, and debt payment and refinancing added a $0.17 hit to FY24 EPS.
October 04, 2023 | 5:17 pm
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B&G Foods' shares have dropped due to a downgrade by Piper Sandler, declining Q3 retail sales, and risks of trade inventory de-loading. The company's new shares and debt payment have also led to FY24 EPS dilution.
The downgrade by Piper Sandler, based on declining Q3 retail sales and risks of trade inventory de-loading, has negatively impacted investor sentiment, leading to a drop in B&G Foods' share price. Additionally, the issuance of new shares and debt payment have led to FY24 EPS dilution, further impacting the stock negatively.
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