Farmer Bros (FARM) Lowered to “Strong Sell” at Zacks Investment Research

Zacks Investment Research cut shares of Farmer Bros (NASDAQ:FARM) from a hold rating to a strong sell rating in a research note released on Friday.

According to Zacks, “Farmer Bros. Co. is in the business of roasting, packaging and distributing coffee and allied products to restaurants, hotels, hospitals, convenience stores and fast food outlets. The company’s primary raw material is green coffee. Green coffee is purchased through domestic commodity brokers. Coffee is an agricultural commodity, and is subject to fluctuations of both price and supply. “

A number of other equities research analysts have also issued reports on the company. BidaskClub lowered Farmer Bros from a sell rating to a strong sell rating in a research note on Tuesday. B. Riley decreased their price target on Farmer Bros from $34.00 to $32.00 and set a buy rating for the company in a research note on Thursday, September 27th. Finally, ValuEngine lowered Farmer Bros from a buy rating to a hold rating in a research note on Monday, July 16th. Two research analysts have rated the stock with a sell rating, one has assigned a hold rating and three have given a buy rating to the company’s stock. Farmer Bros presently has an average rating of Hold and an average price target of $33.75.

Shares of FARM stock traded up $0.15 on Friday, reaching $24.97. 100,528 shares of the company’s stock were exchanged, compared to its average volume of 56,003. Farmer Bros has a 52 week low of $23.02 and a 52 week high of $35.05. The firm has a market capitalization of $403.90 million, a P/E ratio of 192.08, a P/E/G ratio of 9.44 and a beta of 0.22.

Farmer Bros (NASDAQ:FARM) last issued its quarterly earnings results on Wednesday, November 7th. The company reported ($0.18) earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of ($0.09) by ($0.09). Farmer Bros had a positive return on equity of 1.04% and a negative net margin of 3.88%. The business had revenue of $147.44 million for the quarter, compared to the consensus estimate of $146.39 million. During the same period in the prior year, the business posted $0.05 earnings per share. Farmer Bros’s revenue was up 12.0% on a year-over-year basis. On average, equities research analysts anticipate that Farmer Bros will post 0.32 earnings per share for the current fiscal year.

In other Farmer Bros news, CEO Michael H. Keown sold 23,333 shares of Farmer Bros stock in a transaction on Monday, September 10th. The stock was sold at an average price of $28.03, for a total transaction of $654,023.99. Following the completion of the sale, the chief executive officer now directly owns 68,405 shares of the company’s stock, valued at approximately $1,917,392.15. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Insiders own 10.90% of the company’s stock.

A number of hedge funds and other institutional investors have recently modified their holdings of FARM. Trigran Investments Inc. increased its holdings in shares of Farmer Bros by 21.5% in the 2nd quarter. Trigran Investments Inc. now owns 1,433,932 shares of the company’s stock valued at $43,807,000 after acquiring an additional 254,184 shares during the period. Levin Capital Strategies L.P. increased its holdings in shares of Farmer Bros by 441.9% in the 2nd quarter. Levin Capital Strategies L.P. now owns 1,076,908 shares of the company’s stock valued at $32,900,000 after acquiring an additional 878,187 shares during the period. Dimensional Fund Advisors LP increased its holdings in shares of Farmer Bros by 3.0% in the 2nd quarter. Dimensional Fund Advisors LP now owns 897,106 shares of the company’s stock valued at $27,407,000 after acquiring an additional 26,183 shares during the period. BlackRock Inc. increased its holdings in shares of Farmer Bros by 0.8% in the 3rd quarter. BlackRock Inc. now owns 669,178 shares of the company’s stock valued at $17,665,000 after acquiring an additional 4,998 shares during the period. Finally, Russell Investments Group Ltd. increased its holdings in shares of Farmer Bros by 6.1% in the 3rd quarter. Russell Investments Group Ltd. now owns 524,393 shares of the company’s stock valued at $13,843,000 after acquiring an additional 30,254 shares during the period. 59.35% of the stock is owned by institutional investors and hedge funds.

Farmer Bros Company Profile

Farmer Bros. Co engages in the manufacture, wholesale, and distribution of coffee, tea, and culinary products in the United States. The company offers roast and ground coffee; frozen liquid coffee; flavored and unflavored iced and hot teas; culinary products, including gelatins and puddings, soup bases, dressings, gravy and sauce mixes, pancake and biscuit mixes, jellies and preserves, and coffee-related products, such as coffee filters, sugar, and creamers; spices; and other beverages comprising cappuccino, cocoa, granitas, and ready-to-drink cold brew and iced coffee.

Further Reading: Short Selling Stocks, A Beginner’s Guide

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