Shares of TreeHouse Foods, Inc. (NYSE:THS) have received a consensus recommendation of “Reduce” from analysts, reflecting a cautious outlook for the company. According to MarketBeat.com, nine ratings firms currently cover the stock, with two analysts issuing sell recommendations and seven assigning a hold rating. The average 12-month price target stands at $24.67.
Several analysts have recently adjusted their ratings on TreeHouse Foods. On October 24, 2023, Zacks Research downgraded the company from a “hold” to a “strong sell.” Shortly after, on November 11, 2023, William Blair lowered its rating from “outperform” to “hold.” Barclays also revised its price target from $21.00 to $23.00 while maintaining an “equal weight” rating on the stock.
In another report, Weiss Ratings reaffirmed a “sell (e+)” rating for TreeHouse Foods on December 1, 2023. Meanwhile, Truist Financial increased its price target from $20.00 to $22.50 but also rated the stock as a “hold.”
Recent Earnings Report Highlights Challenges
TreeHouse Foods recently released its quarterly earnings results on November 10, 2023. The company reported earnings per share (EPS) of $0.43, which fell short of analysts’ expectations of $0.53, indicating a miss of $0.10. The company’s revenue for the quarter totaled $841.90 million, below the forecasted $853.53 million.
Despite these challenges, TreeHouse Foods managed to show a slight year-over-year revenue increase of 0.1%. For the current fiscal year, analysts anticipate the company will achieve an EPS of $1.94. The company’s return on equity was reported at 5.52%, while it faced a net margin of 7.25%.
Institutional Investor Activity Indicates Confidence
Institutional investors have been actively adjusting their positions in TreeHouse Foods. Sessa Capital IM L.P. increased its stake by 29.5% in the first quarter, acquiring an additional 957,517 shares and now holding a total of 4.2 million shares valued at approximately $113.78 million.
Similarly, Two Sigma Investments LP boosted its stake by an impressive 483.4% in the third quarter, bringing its holdings to 379,089 shares valued at $7.66 million. Ameriprise Financial Inc. also expanded its position by 74.6%, owning 680,279 shares worth around $13.75 million.
Other institutional players, such as Marshall Wace LLP and Bridgeway Capital Management LLC, have also increased their stakes, demonstrating significant institutional confidence in TreeHouse Foods. Overall, institutional investors collectively own 99.81% of the company’s stock.
TreeHouse Foods, Inc. specializes in manufacturing and distributing private brand snacks and beverages in the United States and internationally. The company offers a wide range of products, including crackers, pretzels, cookies, non-dairy creamers, and ready-to-drink beverages. As it navigates these recent challenges, the market and investors will be watching closely for future developments.
