BidaskClub Downgrades Hostess Brands (NASDAQ:TWNK) to Sell

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Hostess Brands (NASDAQ:TWNK) was downgraded by research analysts at BidaskClub from a “hold” rating to a “sell” rating in a research report issued on Tuesday, BidAskClub reports.

A number of other equities research analysts have also weighed in on the company. Zacks Investment Research upgraded Hostess Brands from a “hold” rating to a “buy” rating and set a $16.00 price objective for the company in a research note on Friday, January 10th. SunTrust Banks lowered their price objective on Hostess Brands from $17.00 to $16.00 and set a “hold” rating for the company in a research note on Friday, September 20th. Morgan Stanley raised their price objective on Hostess Brands from $14.00 to $15.00 and gave the company an “equal weight” rating in a research note on Tuesday, December 3rd. JPMorgan Chase & Co. restated an “overweight” rating on shares of Hostess Brands in a research note on Tuesday, December 3rd. Finally, Deutsche Bank started coverage on Hostess Brands in a research note on Wednesday, December 11th. They set a “hold” rating and a $16.00 price objective for the company. One investment analyst has rated the stock with a sell rating, three have assigned a hold rating and five have assigned a buy rating to the company’s stock. The company has a consensus rating of “Hold” and an average target price of $15.75.

Shares of TWNK traded up $0.06 during midday trading on Tuesday, reaching $14.00. 14,519 shares of the company were exchanged, compared to its average volume of 750,520. The stock has a 50-day moving average price of $14.17 and a 200-day moving average price of $13.93. The company has a market cap of $1.81 billion, a price-to-earnings ratio of 25.94 and a beta of 0.56. Hostess Brands has a 1-year low of $11.04 and a 1-year high of $14.86. The company has a current ratio of 2.73, a quick ratio of 2.49 and a debt-to-equity ratio of 0.62.

Hostess Brands (NASDAQ:TWNK) last posted its earnings results on Wednesday, November 6th. The company reported $0.13 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.12 by $0.01. Hostess Brands had a return on equity of 4.19% and a net margin of 5.88%. The business had revenue of $227.21 million during the quarter, compared to analyst estimates of $212.80 million. During the same quarter last year, the firm earned $0.10 earnings per share. The company’s revenue for the quarter was up 7.7% compared to the same quarter last year. Equities research analysts anticipate that Hostess Brands will post 0.61 earnings per share for the current year.

In other Hostess Brands news, insider Hostess Cdm Co-Invest, Llc sold 133,284 shares of the stock in a transaction that occurred on Friday, December 20th. The stock was sold at an average price of $14.55, for a total transaction of $1,939,282.20. Following the transaction, the insider now owns 133,284 shares of the company’s stock, valued at approximately $1,939,282.20. The transaction was disclosed in a document filed with the SEC, which is available at this link. In the last ninety days, insiders have sold 1,123,713 shares of company stock worth $15,944,810. 24.60% of the stock is currently owned by company insiders.

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Sciencast Management LP acquired a new position in shares of Hostess Brands during the fourth quarter valued at approximately $404,000. Diversified Trust Co lifted its position in shares of Hostess Brands by 22.8% during the 4th quarter. Diversified Trust Co now owns 42,175 shares of the company’s stock valued at $613,000 after acquiring an additional 7,828 shares during the last quarter. Nomura Holdings Inc. acquired a new stake in shares of Hostess Brands during the 3rd quarter valued at $1,302,000. Maverick Capital Ltd. lifted its position in shares of Hostess Brands by 224.0% during the 3rd quarter. Maverick Capital Ltd. now owns 866,992 shares of the company’s stock valued at $12,125,000 after acquiring an additional 599,382 shares during the last quarter. Finally, Metropolitan Life Insurance Co NY boosted its stake in shares of Hostess Brands by 25.3% during the 3rd quarter. Metropolitan Life Insurance Co NY now owns 38,738 shares of the company’s stock worth $542,000 after acquiring an additional 7,823 shares in the last quarter.

Hostess Brands Company Profile

Hostess Brands, Inc, a packaged food company, develops, manufactures, markets, sells, and distributes fresh sweet baked goods in the United States. It primarily offer a range of snack cakes, donuts, sweet rolls, breakfast pastries, snack pies, and related products. The company operates in two segments, Sweet Baked Goods and In-Store Bakery.

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Analyst Recommendations for Hostess Brands (NASDAQ:TWNK)

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