BidaskClub Downgrades Hostess Brands (NASDAQ:TWNK) to Sell

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

Several other brokerages also recently commented on TWNK. Morgan Stanley increased their price target on Hostess Brands from $14.00 to $15.00 and gave the company an “equal weight” rating in a report on Tuesday, December 3rd. JPMorgan Chase & Co. reaffirmed an “overweight” rating on shares of Hostess Brands in a report on Tuesday, December 3rd. SunTrust Banks lowered their target price on shares of Hostess Brands from $17.00 to $16.00 and set a “hold” rating on the stock in a research note on Friday, September 20th. Zacks Investment Research upgraded shares of Hostess Brands from a “hold” rating to a “buy” rating and set a $16.00 target price on the stock in a report on Friday, January 10th. Finally, Deutsche Bank initiated coverage on shares of Hostess Brands in a research report on Wednesday, December 11th. They set a “hold” rating and a $16.00 target price for the company. One investment analyst has rated the stock with a sell rating, three have assigned a hold rating and five have given a buy rating to the stock. The stock has a consensus rating of “Hold” and a consensus target price of $15.75.

NASDAQ TWNK traded up $0.06 during trading on Tuesday, hitting $14.00. 14,519 shares of the company traded hands, compared to its average volume of 750,520. Hostess Brands has a 12 month low of $11.04 and a 12 month high of $14.86. The business has a fifty day simple moving average of $14.17 and a 200 day simple moving average of $13.93. The company has a current ratio of 2.73, a quick ratio of 2.49 and a debt-to-equity ratio of 0.62. The company has a market capitalization of $1.81 billion, a P/E ratio of 25.94 and a beta of 0.56.

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

In related news, insider Hostess Cdm Co-Invest, Llc sold 500,000 shares of the business’s stock in a transaction on Friday, December 13th. The shares were sold at an average price of $14.06, for a total transaction of $7,030,000.00. Following the transaction, the insider now owns 500,000 shares of the company’s stock, valued at $7,030,000. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Over the last ninety days, insiders sold 1,123,713 shares of company stock worth $15,944,810. Company insiders own 24.60% of the company’s stock.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in TWNK. Bank of Montreal Can grew its holdings in shares of Hostess Brands by 198.6% during the 2nd quarter. Bank of Montreal Can now owns 12,406 shares of the company’s stock worth $179,000 after purchasing an additional 8,251 shares in the last quarter. Charles Schwab Investment Management Inc. increased its position in Hostess Brands by 8.0% in the 2nd quarter. Charles Schwab Investment Management Inc. now owns 624,722 shares of the company’s stock valued at $9,021,000 after acquiring an additional 46,127 shares in the last quarter. Bank of New York Mellon Corp increased its position in Hostess Brands by 0.3% in the 2nd quarter. Bank of New York Mellon Corp now owns 667,064 shares of the company’s stock valued at $9,633,000 after acquiring an additional 2,198 shares in the last quarter. Renaissance Technologies LLC bought a new position in shares of Hostess Brands in the second quarter worth about $1,470,000. Finally, Northern Trust Corp raised its stake in shares of Hostess Brands by 0.7% in the second quarter. Northern Trust Corp now owns 1,222,374 shares of the company’s stock worth $17,651,000 after acquiring an additional 8,580 shares during the last quarter.

About Hostess Brands

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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