Stephen Sherrill, a director at B&G Foods, Inc. (NYSE:BGS), has acquired 70,000 shares of the company's common stock, according to a recent SEC filing. The shares were purchased at a weighted average price of $6.6328 per share, amounting to a total transaction value of approximately $464,296. The transaction, executed on November 8, 2024, was carried out in multiple trades with prices ranging from $6.4750 to $6.8100 per share. Following this purchase, Sherrill's direct ownership in B&G Foods stands at 353,084 shares.
In other recent news, B&G Foods reported mixed third-quarter earnings, with net sales reaching $461.1 million and adjusted EBITDA at $70.4 million, both figures falling short of expectations. Despite the challenging results, the company demonstrated a net income recovery, posting a net income of $7.5 million, a significant improvement from the previous year's net loss. B&G Foods also revised its fiscal 2024 guidance to $1.92 billion to $1.95 billion in net sales, indicating a cautious yet optimistic outlook for 2025.
TD Cowen recently adjusted its outlook on B&G Foods, reducing the price target to $7.50 from the previous $8.00, while maintaining a sell rating. This decision was influenced by the company's recent earnings and the conservative guidance for the coming quarters. The firm's analysis suggests that B&G Foods may face ongoing challenges, particularly within specific segments of its product range.
In response to these challenges, B&G Foods is undergoing portfolio restructuring, with potential divestitures of non-core assets. The company's Spices and Flavor Solutions segment saw a 2.6% sales increase, while other segments experienced declines. These developments are part of B&G Foods' strategic efforts to drive growth and manage costs amidst a challenging market environment.
InvestingPro Insights
Stephen Sherrill's recent acquisition of B&G Foods shares aligns with several key insights from InvestingPro. The director's purchase comes at a time when the stock is trading near its 52-week low and has experienced significant price declines across various timeframes. InvestingPro data shows that B&G Foods' stock has seen a 24.71% drop in the past week and a 41.28% decline over the last six months.
Despite these challenges, InvestingPro Tips suggest that B&G Foods may be undervalued. The stock's valuation implies a strong free cash flow yield, and its Price to Book ratio of 0.69 indicates it may be trading below its book value. Additionally, the company boasts a substantial dividend yield of 11.71%, reflecting its commitment to shareholder returns. This is further supported by an InvestingPro Tip highlighting that B&G Foods has maintained dividend payments for 18 consecutive years.
Analysts remain cautiously optimistic about B&G Foods' prospects. An InvestingPro Tip reveals that five analysts have revised their earnings upwards for the upcoming period, and net income is expected to grow this year. This positive outlook is particularly noteworthy given that the company was not profitable over the last twelve months, with a negative P/E ratio of -19.58.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for B&G Foods, providing a deeper understanding of the company's financial health and market position.
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