SuperValu Inc. (SVU) Lowered to “Hold” at Zacks Investment Research

SuperValu Inc. (NYSE:SVU) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Wednesday, August 9th.

According to Zacks, “SUPERVALU shares have underperformed in the past three months in comparison to the industry. While the company’s first quarter fiscal 2018 earnings lagged the Zacks Consensus Estimate, sales beat the same. Further, both earnings and revenues increased year-over-year during the quarter, which signals that the company’s efforts to turnaround and improve its businesses is bearing fruits. SUPERVALU is also trying to develop wholesale operations, primarily through adding new customers, retaining and developing business with existing customers and acquisitions. The acquisition of Unified Grocers is expected to boost Supervalu’s wholesale business and complement its customer base. However, sluggish retail business, tough competitive pressure and depleting footfalls at the supermarkets continues to remain headwinds. Estimates are also declining since past 7 days.”

Other equities analysts have also issued research reports about the stock. Telsey Advisory Group reduced their price objective on shares of SuperValu from $38.50 to $31.50 and set a “market perform” rating for the company in a research report on Tuesday, June 27th. Pivotal Research restated a “buy” rating and set a $38.50 price objective on shares of SuperValu in a research report on Wednesday, July 26th. ValuEngine upgraded shares of SuperValu from a “buy” rating to a “strong-buy” rating in a research report on Thursday, August 3rd. Royal Bank Of Canada restated a “buy” rating and set a $42.00 price objective on shares of SuperValu in a research report on Tuesday, May 30th. Finally, Guggenheim restated a “neutral” rating on shares of SuperValu in a research report on Wednesday, April 19th. One investment analyst has rated the stock with a sell rating, five have issued a hold rating, two have assigned a buy rating and one has given a strong buy rating to the stock. The company currently has a consensus rating of “Hold” and a consensus price target of $32.08.

Shares of SuperValu (SVU) traded up 0.54% during trading on Wednesday, reaching $22.47. 483,580 shares of the company’s stock were exchanged. The company’s 50-day moving average price is $23.36 and its 200 day moving average price is $25.62. The firm has a market capitalization of $857.05 million, a PE ratio of 1.39 and a beta of 2.06. SuperValu has a 52 week low of $20.30 and a 52 week high of $40.18.

SuperValu (NYSE:SVU) last posted its quarterly earnings data on Tuesday, July 25th. The company reported $0.63 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.70 by $0.07. SuperValu had a net margin of 4.46% and a return on equity of 220.54%. The business had revenue of $4 billion for the quarter, compared to the consensus estimate of $3.91 billion. During the same quarter last year, the business posted $1.33 EPS. The business’s revenue for the quarter was up 6.3% on a year-over-year basis. Analysts predict that SuperValu will post $2.36 EPS for the current fiscal year.

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Several hedge funds and other institutional investors have recently made changes to their positions in SVU. State of Alaska Department of Revenue boosted its position in shares of SuperValu by 2.7% in the first quarter. State of Alaska Department of Revenue now owns 29,540 shares of the company’s stock valued at $114,000 after buying an additional 770 shares during the last quarter. Amalgamated Bank boosted its position in shares of SuperValu by 0.7% in the second quarter. Amalgamated Bank now owns 36,224 shares of the company’s stock valued at $119,000 after buying an additional 246 shares during the last quarter. Public Employees Retirement System of Ohio boosted its position in shares of SuperValu by 5.6% in the first quarter. Public Employees Retirement System of Ohio now owns 31,755 shares of the company’s stock valued at $123,000 after buying an additional 1,687 shares during the last quarter. Nine Chapters Capital Management LLC purchased a new position in shares of SuperValu during the first quarter valued at approximately $135,000. Finally, Sigma Planning Corp boosted its position in shares of SuperValu by 2.5% in the second quarter. Sigma Planning Corp now owns 41,059 shares of the company’s stock valued at $135,000 after buying an additional 1,000 shares during the last quarter.

About SuperValu

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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