B&G Foods Inc. (BGS) shares are trading at higher $28.74 and the avg recommendation for the stock is Moderate Buy, while the current analyst price target stands at $29.33.
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 86.62% while the S&P 500 is up 11.51%. 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 18.90 and outstanding shares of 64.13M.
BGS has seen increased volume after this news and investors are putting their support behind the value proposition. 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 1.84B 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.