Dean Foods Downgraded by Zacks to “Underperform” (DF)
Dean Foods (NYSE:DF) was downgraded by Zacks from a “neutral” rating to an “underperform” rating in a research report issued to clients and investors on Tuesday. They currently have a $15.00 target price on the stock. Zacks‘s price target would suggest a potential downside of 10.45% from the company’s current price.
Zacks’ analyst wrote, “We have downgraded our long-term recommendation on Dean Foods to Underperform after the company posted disappointing first-quarter 2014 results and lowered its full-year outlook. Due to higher raw milk prices, the company recorded an adjusted loss of $0.05 per share as against adjusted earnings of $0.31 in the year-ago comparable quarter and the Zacks Consensus Estimate of $0.02. Gauging current industry volume trends, Dean Foods expects higher raw milk prices and weak volumes in 2014. Therefore, the company has lowered its earnings guidance for the year. Further, while we remain confident of Dean Foods’ fundamental strengths as well as strategic initiatives to boost profitability, we believe the inflationary commodity environment along with competitive pressures will continue to weigh on the company’s performance in 2014.”
In other Dean Foods news, CAO Scott Vopni unloaded 6,387 shares of the company’s stock in a transaction dated Wednesday, May 14th. The stock was sold at an average price of $15.13, for a total transaction of $96,635.31. Following the completion of the sale, the chief accounting officer now directly owns 12,350 shares of the company’s stock, valued at approximately $186,856. The transaction was disclosed in a document filed with the SEC, which is available at this link.
A number of other analysts have also recently weighed in on DF. Analysts at Deutsche Bank cut their price target on shares of Dean Foods from $15.00 to $14.00 in a research note on Friday, May 9th. Analysts at BB&T Corp. initiated coverage on shares of Dean Foods in a research note on Monday, April 14th. They set a “buy” rating and a $21.00 price target on the stock. Two analysts have rated the stock with a sell rating, six have issued a hold rating and two have given a buy rating to the company’s stock. Dean Foods presently has an average rating of “Hold” and a consensus target price of $17.00.
Shares of Dean Foods (NYSE:DF) traded up 0.78% during mid-day trading on Tuesday, hitting $16.88. The stock had a trading volume of 612,548 shares. Dean Foods has a 52 week low of $13.59 and a 52 week high of $22.96. The stock has a 50-day moving average of $15.56 and a 200-day moving average of $16.16. The company has a market cap of $1.578 billion and a P/E ratio of 5.12.
Dean Foods (NYSE:DF) last announced its earnings results on Thursday, May 8th. The company reported ($0.05) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.01 by $0.06. The company had revenue of $2.30 billion for the quarter, compared to the consensus estimate of $2.27 billion. During the same quarter in the previous year, the company posted $0.31 earnings per share. The company’s revenue for the quarter was up 2.1% on a year-over-year basis. On average, analysts predict that Dean Foods will post $0.59 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which is scheduled for Thursday, June 5th. Investors of record on Tuesday, May 27th will be given a dividend of $0.07 per share. This represents a $0.28 dividend on an annualized basis and a yield of 1.67%. The ex-dividend date of this dividend is Thursday, May 22nd.
Dean Foods Company is a food and beverage company. The Company operates through two segments: Fresh Dairy Direct and The WhiteWave Foods Company (NYSE:DF).
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