Zacks Investment Research Downgrades Dean Foods (DF) to Hold
Dean Foods (NYSE:DF) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Tuesday.
According to Zacks, “Dean Foods is witnessing increased optimism on the smart volume initiative, which is expected to aid results. This initiative is aimed at improving top-line, building margins and creating operating efficiencies. In third-quarter 2017, the company’s results gained from overall solid sales execution and stringent progress on its smart volumes initiative, which helped in wining some new business for 2018. On the flip side, the company has been witnessing a dismal sales trend evident from the second straight quarter miss in third-quarter due to soft volumes, higher raw milk costs, and loss of share in U.S. fluid milk volumes. This led Dean Foods to underperform the sector in the past month. Nevertheless, the company expects to bring more smart volumes into its system to aid top line growth. The company’s initiatives to strengthen brands and diversify portfolio also bode well.”
A number of other equities research analysts also recently weighed in on DF. BMO Capital Markets reissued a “market perform” rating and set a $12.00 price target (down from $15.00) on shares of Dean Foods in a research note on Wednesday, November 8th. ValuEngine downgraded shares of Dean Foods from a “buy” rating to a “hold” rating in a research note on Friday, February 2nd. Morgan Stanley dropped their price target on shares of Dean Foods from $10.00 to $9.00 and set an “overweight” rating for the company in a research note on Wednesday, November 8th. Credit Suisse Group dropped their price target on shares of Dean Foods from $10.00 to $8.50 and set an “underperform” rating for the company in a research note on Wednesday, November 8th. Finally, Jefferies Group set a $16.00 price target on shares of Dean Foods and gave the stock a “buy” rating in a research note on Sunday, October 29th. Three analysts have rated the stock with a sell rating, seven have issued a hold rating and four have given a buy rating to the company. The stock currently has a consensus rating of “Hold” and an average target price of $13.05.
A number of large investors have recently modified their holdings of the business. Dimensional Fund Advisors LP increased its stake in Dean Foods by 1.6% in the third quarter. Dimensional Fund Advisors LP now owns 4,998,465 shares of the company’s stock valued at $54,383,000 after purchasing an additional 78,538 shares in the last quarter. State Street Corp increased its stake in Dean Foods by 2.0% in the second quarter. State Street Corp now owns 3,251,809 shares of the company’s stock valued at $55,278,000 after purchasing an additional 62,555 shares in the last quarter. Ameriprise Financial Inc. increased its stake in Dean Foods by 11.9% in the third quarter. Ameriprise Financial Inc. now owns 3,047,962 shares of the company’s stock valued at $33,161,000 after purchasing an additional 323,688 shares in the last quarter. FMR LLC increased its stake in Dean Foods by 56.2% in the second quarter. FMR LLC now owns 2,998,781 shares of the company’s stock valued at $50,979,000 after purchasing an additional 1,079,205 shares in the last quarter. Finally, Bank of New York Mellon Corp increased its stake in Dean Foods by 15.4% in the fourth quarter. Bank of New York Mellon Corp now owns 1,604,816 shares of the company’s stock valued at $18,551,000 after purchasing an additional 214,749 shares in the last quarter. 95.08% of the stock is owned by hedge funds and other institutional investors.
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About Dean Foods
Dean Foods Company is a food and beverage company. The Company processes and distributes fluid milk, and other dairy and dairy case products in the United States. It is engaged in manufacturing, marketing, selling and distributing a range of branded and private label dairy and dairy case products. It offers branded and private label dairy case products, including fluid milk, ice cream, cultured dairy products, creamers, ice cream mix and other dairy products to retailers, distributors, foodservice outlets, educational institutions and governmental entities across the United States.
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