Albertsons Companies (NYSE:ACI) Shares Gap Up – Should You Buy?

Albertsons Companies, Inc. (NYSE:ACI) shares gapped up before the market opened on Wednesday . The stock had previously closed at $18.51, but opened at $19.20. Albertsons Companies shares last traded at $18.68, with a volume of 6,949,791 shares trading hands.

Analyst Ratings Changes

A number of research analysts have issued reports on ACI shares. BMO Capital Markets lowered their target price on Albertsons Companies from $21.00 to $19.00 and set a “market perform” rating for the company in a research note on Wednesday, October 16th. Royal Bank of Canada dropped their price objective on shares of Albertsons Companies from $22.00 to $21.00 and set an “outperform” rating for the company in a research note on Wednesday. Telsey Advisory Group reaffirmed a “market perform” rating and set a $27.25 target price on shares of Albertsons Companies in a research note on Friday, October 11th. Melius upgraded Albertsons Companies from a “hold” rating to a “buy” rating and set a $24.00 price target for the company in a research note on Monday, October 21st. Finally, Wells Fargo & Company restated a “market perform” rating on shares of Albertsons Companies in a research report on Friday, October 18th. Four equities research analysts have rated the stock with a hold rating and six have issued a buy rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $23.14.

Albertsons Companies Trading Down 0.1 %

The firm has a fifty day simple moving average of $18.85 and a 200-day simple moving average of $19.40. The company has a debt-to-equity ratio of 2.58, a current ratio of 0.90 and a quick ratio of 0.22. The firm has a market cap of $10.72 billion, a P/E ratio of 10.87, a price-to-earnings-growth ratio of 1.12 and a beta of 0.51.

Albertsons Companies (NYSE:ACI) last released its quarterly earnings results on Tuesday, October 15th. The company reported $0.51 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.48 by $0.03. The business had revenue of $18.55 billion during the quarter, compared to the consensus estimate of $18.47 billion. Albertsons Companies had a return on equity of 49.50% and a net margin of 1.25%. The company’s quarterly revenue was up 1.4% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.60 EPS. On average, equities research analysts expect that Albertsons Companies, Inc. will post 2.13 earnings per share for the current year.

Albertsons Companies Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, November 8th. Stockholders of record on Monday, October 28th were issued a $0.12 dividend. This represents a $0.48 annualized dividend and a dividend yield of 2.59%. The ex-dividend date was Monday, October 28th. Albertsons Companies’s dividend payout ratio is presently 28.07%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Comerica Bank increased its holdings in Albertsons Companies by 14.9% in the 1st quarter. Comerica Bank now owns 36,325 shares of the company’s stock worth $779,000 after acquiring an additional 4,716 shares during the last quarter. Wealth Enhancement Advisory Services LLC lifted its stake in shares of Albertsons Companies by 7.8% during the 2nd quarter. Wealth Enhancement Advisory Services LLC now owns 46,670 shares of the company’s stock valued at $922,000 after buying an additional 3,366 shares in the last quarter. Swedbank AB boosted its holdings in Albertsons Companies by 166.2% in the 2nd quarter. Swedbank AB now owns 214,192 shares of the company’s stock worth $4,230,000 after buying an additional 133,715 shares during the period. Blue Trust Inc. grew its stake in Albertsons Companies by 2,948.4% in the 2nd quarter. Blue Trust Inc. now owns 2,896 shares of the company’s stock valued at $62,000 after buying an additional 2,801 shares in the last quarter. Finally, Continuum Advisory LLC raised its holdings in Albertsons Companies by 76.4% during the 2nd quarter. Continuum Advisory LLC now owns 20,261 shares of the company’s stock valued at $400,000 after acquiring an additional 8,775 shares during the period. 71.35% of the stock is currently owned by hedge funds and other institutional investors.

About Albertsons Companies

Albertsons Companies, Inc, through its subsidiaries, engages in the operation of food and drug stores in the United States. The company’s food and drug retail stores offer grocery products, general merchandise, health and beauty care products, pharmacy, fuel, and other items and services. It also manufactures and processes food products for sale in stores.