Top investors say Campbell Soup Company (CPB) ticks everything they need

Campbell Soup Company (NYSE: CPB) stock jumped 1.34% on Friday to $49.18 against a previous-day closing price of $48.53. With 2.61 million shares changed hands, the volume of the stock remained heavier than its average volume of 2.32 million shares. During the session, the Packaged Foods company that operates in wider Consumer Defensive sector, reached to the highest price of $49.49 whereas the lowest price it dropped to was $48.59. The 52-week range on CPB shows that it touched its highest point at $51.94 and its lowest point at $39.76 during that stretch. It currently has a 1-year price target of $48.62. With its current market cap of 14.60 billion, CPB has annualized dividend of $1.48 while the current yield stands at 3.01%. Beta for the stock currently stands at 0.35.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of CPB was up-trending over the past week, with a rise of 4.44%, but this was down by -3.87% over a month. Three-month performance surged to 3.76% while six-month performance rose 14.35%. The stock gained 16.10% in the past year, while it has gained 13.16% so far this year. A look at the trailing 12-month EPS for CPB yields 2.50 with Next year EPS estimates of 3.06. For the next quarter, that number is 0.86. This implies an EPS growth rate of 69.70% for this year and 5.23% for next year. EPS is expected to grow by 2.64% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 12.80%.

Float and Shares Shorts:

At present, 301.00 million CPB shares are outstanding with a float of 193.86 million shares on hand for trading. On Jul 14, 2022, short shares totaled 13.75 million, which was 4.57% higher than short shares on Jun 14, 2022. In addition to Mr. Mark A. Clouse as the firm’s Pres, CEO & Director, Mr. Mick J. Beekhuizen serves as its Exec. VP & CFO.

Institutional Ownership:

Through their ownership of 52.71% of CPB’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 45.46% of CPB, in contrast to 28.02% held by mutual funds. Shares owned by individuals account for 24.59%. As the largest shareholder in CPB with 7.52% of the stake, The Vanguard Group, Inc. holds 22,610,042 shares worth 22,610,042. A second-largest stockholder of CPB, SSgA Funds Management, Inc., holds 12,608,907 shares, controlling over 4.20% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in CPB, holding 10,792,840 shares or 3.59% stake. With a 1.93% stake in CPB, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 5,808,333 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 1.50% of CPB stock, is the second-largest Mutual Fund holder. It holds 4,507,520 shares valued at 227.09 million. Vanguard Mid Cap Index Fund holds 1.50% of the stake in CPB, owning 4,502,443 shares worth 226.83 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for CPB since 19 analysts follow the stock currently. There are 1 analysts who recommend BUY ratings, while 3 suggest SELL ratings. Of the remaining analysts, 13 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 2 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With CPB analysts setting a high price target of $55.00 and a low target of $38.00, the average target price over the next 12 months is $47.94. Based on these targets, CPB could surge 11.83% to reach the target high and fall by -22.73% to reach the target low. Reaching the average price target will result in a decline of -2.52% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. CPB will report FY 2023 earnings on 08/31/2023. Analysts have provided yearly estimates in a range of $2.94 being high and $2.75 being low. For CPB, this leads to a yearly average estimate of $2.89. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Campbell Soup Company surprised analysts by $0.00 when it reported $0.56 EPS against a consensus estimate of $0.56. The surprise factor in the prior quarter was $0.09. Based on analyst estimates, the high estimate for the next quarter is $0.92 and the low estimate is $0.75. The average estimate for the next quarter is thus $0.86.

Summary of Insider Activity:

Insiders traded CPB stock several times over the past three months with 7 Buys and 4 Sells. In these transactions, 54,541 shares were bought while 73,563 shares were sold. The number of buy transactions has increased to 37 while that of sell transactions has risen to 17 over the past year. The total number of shares bought during that period was 337,635 while 184,821 shares were sold.

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