B&G Foods Inc. (BGS) shares are trading at lower $27.06 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $29.00.
To add more color to this target, the company’s high over the last year is $31.93 and the low is $10.39. Over the last 52 weeks, BGS is up 36.80% while the S&P 500 is up 11.20%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, BGS reported a profit of $134.1 million. B&G Foods Inc. also saw revenues increase to $512.54 million. In addition, BGS has free cash flow of $236.35 million as of 06-2020. The company’s EBITDA came in at $104.29 million which compares well with its peers.
BGS booked profit margins of 6.20%, its Return on Equity (ROE) is 14.00%, and its Return on Assets is 3.40%. All told, it is clear that, BGS needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. BGS has a short ratio of 16.79 and outstanding shares of 64.13M.
BGS has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.97 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 1.79. B&G Foods Inc. BGS also noted assets of $3.25 billion at the end of the last quarter. Investors should also keep an eye on sector updates as BGS has historically followed its peers on positive news.
All told, B&G Foods Inc. BGS has strung together solid data and demonstrated underlying fundamentals. At its current valuation, BGS represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
B&G Foods Inc. BGS is now commanding a market cap of 1.76B and a float of 62.64M. BGS is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of BGS stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in BGS, either long or short, and we have not been compensated for this article.