Zacks Investment Research Lowers Hostess Brands (TWNK) to Sell

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Zacks Investment Research downgraded shares of Hostess Brands (NASDAQ:TWNK) from a hold rating to a sell rating in a research note issued to investors on Thursday.

According to Zacks, “Hostess Brands, Inc. is involved in developing, manufacturing, marketing, selling and distributing sweet goods primarily in the United States. The company produces new and classic treats which includes Ding Dongs, Ho Hos, Donettes, Fruit Pies as well as Twinkies and CupCakes. Hostess Brands, Inc. is based in Kansas City, Missouri. “

A number of other brokerages have also recently weighed in on TWNK. Royal Bank of Canada cut Hostess Brands from an outperform rating to a sector perform rating in a research report on Wednesday, August 8th. SunTrust Banks cut Hostess Brands from a buy rating to a hold rating in a research report on Wednesday, August 8th. BidaskClub upgraded Hostess Brands from a strong sell rating to a sell rating in a research report on Friday, May 25th. Deutsche Bank cut Hostess Brands from a buy rating to a hold rating and set a $14.00 price target on the stock. in a research report on Monday, May 14th. Finally, Vertical Group began coverage on Hostess Brands in a research report on Tuesday, May 22nd. They issued a buy rating and a $19.00 price target on the stock. Two equities research analysts have rated the stock with a sell rating, six have issued a hold rating and three have assigned a buy rating to the company’s stock. The company presently has an average rating of Hold and an average target price of $15.67.

NASDAQ:TWNK traded up $0.07 during trading hours on Thursday, reaching $12.06. The company had a trading volume of 21,669 shares, compared to its average volume of 918,058. Hostess Brands has a one year low of $11.00 and a one year high of $15.40. The stock has a market capitalization of $1.55 billion, a price-to-earnings ratio of 19.19 and a beta of -0.09. The company has a debt-to-equity ratio of 0.64, a current ratio of 2.03 and a quick ratio of 1.75.

Hostess Brands (NASDAQ:TWNK) last announced its quarterly earnings results on Tuesday, August 7th. The company reported $0.14 earnings per share for the quarter, missing analysts’ consensus estimates of $0.18 by ($0.04). Hostess Brands had a net margin of 28.58% and a return on equity of 3.87%. The company had revenue of $215.85 million during the quarter, compared to the consensus estimate of $219.50 million. research analysts expect that Hostess Brands will post 0.56 EPS for the current fiscal year.

In other Hostess Brands news, Director Larry E. Bodner bought 10,000 shares of the firm’s stock in a transaction dated Tuesday, August 14th. The shares were bought at an average price of $11.93 per share, for a total transaction of $119,300.00. Following the completion of the acquisition, the director now owns 26,609 shares of the company’s stock, valued at $317,445.37. The purchase was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Andrew Wilson Jacobs bought 8,275 shares of the firm’s stock in a transaction dated Friday, August 10th. The shares were acquired at an average price of $12.15 per share, for a total transaction of $100,541.25. Following the acquisition, the insider now directly owns 27,209 shares of the company’s stock, valued at approximately $330,589.35. The disclosure for this purchase can be found here. 24.60% of the stock is currently owned by corporate insiders.

Several hedge funds have recently made changes to their positions in the company. FDx Advisors Inc. grew its holdings in shares of Hostess Brands by 39.9% during the first quarter. FDx Advisors Inc. now owns 17,150 shares of the company’s stock worth $254,000 after purchasing an additional 4,894 shares during the last quarter. Legal & General Group Plc grew its holdings in shares of Hostess Brands by 17.2% during the first quarter. Legal & General Group Plc now owns 35,214 shares of the company’s stock worth $521,000 after purchasing an additional 5,161 shares during the last quarter. Financial Counselors Inc. grew its holdings in shares of Hostess Brands by 8.4% during the second quarter. Financial Counselors Inc. now owns 76,866 shares of the company’s stock worth $1,045,000 after purchasing an additional 5,932 shares during the last quarter. Metropolitan Life Insurance Co. NY grew its holdings in shares of Hostess Brands by 23.4% during the second quarter. Metropolitan Life Insurance Co. NY now owns 32,219 shares of the company’s stock worth $438,000 after purchasing an additional 6,102 shares during the last quarter. Finally, Xact Kapitalforvaltning AB grew its holdings in shares of Hostess Brands by 55.8% during the first quarter. Xact Kapitalforvaltning AB now owns 17,600 shares of the company’s stock worth $260,000 after purchasing an additional 6,300 shares during the last quarter. Institutional investors own 84.97% of the company’s stock.

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 coffee cakes, cinnamon rolls, honey buns, brownies, bread and buns, jumbo muffins, and eclairs under the Twinkies, CupCakes, Ding Dongs, Zingers, HoHos, Donettes, Dolly Madison, and Superior on Main brands.

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