Zacks Investment Research Lowers SuperValu Inc. (SVU) to Sell
SuperValu Inc. (NYSE:SVU) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Thursday.
According to Zacks, “Estimates have been declining since past 60 days. In fact, shares have underperformed the Zacks categorized industry on a year-to-date basis. While SUPERVALU reported better-than-expected fourth quarter fiscal 2017 results, revenues inched up only 0.6% year-over-year in the quarter and earnings fell 7.1% from the prior-year quarter. We commend its decision to spin off its Save-A-Lot stores a positive as this would help the company to concentrate on its more profitable core businesses. The acquisition of Unified Grocers will also help boost its wholesale business. Moreover, it has undertaken several initiatives to improve comps in the retail sector and increase operating efficiency. However, the company continues to face tough competitive pressure that has hit the grocery industry as a whole. Further, deflationary environment in food products and depleting footfalls at the supermarkets are causes of concern for the grocery chain.”
A number of other research analysts also recently weighed in on SVU. ValuEngine downgraded shares of SuperValu from a “buy” rating to a “hold” rating in a report on Friday, June 2nd. Royal Bank Of Canada restated a “buy” rating and set a $6.00 price target on shares of SuperValu in a report on Tuesday, May 30th. Finally, Guggenheim restated a “neutral” rating on shares of SuperValu in a report on Wednesday, April 19th. One investment analyst has rated the stock with a sell rating, six have issued a hold rating and two have assigned a buy rating to the company’s stock. The stock currently has a consensus rating of “Hold” and an average price target of $5.32.
Shares of SuperValu (NYSE SVU) opened at 4.06 on Thursday. The company’s 50-day moving average is $4.00 and its 200-day moving average is $4.08. The stock has a market capitalization of $1.08 billion, a PE ratio of 1.66 and a beta of 2.05. SuperValu has a 12 month low of $3.20 and a 12 month high of $5.74.
SuperValu (NYSE:SVU) last released its quarterly earnings results on Tuesday, April 25th. The company reported $0.13 earnings per share for the quarter, beating analysts’ consensus estimates of $0.09 by $0.04. The business had revenue of $2.91 billion for the quarter, compared to the consensus estimate of $2.90 billion. SuperValu had a net margin of 4.34% and a negative return on equity of 88.07%. SuperValu’s revenue for the quarter was up .6% on a year-over-year basis. During the same quarter last year, the firm earned $0.23 EPS. Equities research analysts expect that SuperValu will post $0.36 earnings per share for the current fiscal year.
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Hedge funds and other institutional investors have recently bought and sold shares of the stock. Assenagon Asset Management S.A. purchased a new position in SuperValu during the fourth quarter worth about $108,000. State of Alaska Department of Revenue raised its position in SuperValu by 2.7% in the first quarter. State of Alaska Department of Revenue now owns 29,540 shares of the company’s stock worth $114,000 after buying an additional 770 shares during the last quarter. Public Employees Retirement System of Ohio raised its position in SuperValu by 5.6% in the first quarter. Public Employees Retirement System of Ohio now owns 31,755 shares of the company’s stock worth $123,000 after buying an additional 1,687 shares during the last quarter. Nine Chapters Capital Management LLC purchased a new position in SuperValu during the first quarter worth about $135,000. Finally, Sigma Planning Corp raised its position in SuperValu by 2.7% in the first quarter. Sigma Planning Corp now owns 40,059 shares of the company’s stock worth $155,000 after buying an additional 1,050 shares during the last quarter. Institutional investors and hedge funds own 80.43% of the company’s stock.
SuperValu Company Profile
Supervalu Inc is a wholesale distributor to independent retail customers across the United States. The Company’s segments include Wholesale and Retail. The Company offers a range of advertised brand name and private-label products, including grocery (both perishable and nonperishable), general merchandise and home, health and beauty care, and pharmacy, which are sold through Company-operated and licensed Retail stores to shoppers and through its Wholesale segment to independent retail customers.
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