Hostess Brands (TWNK) Stock Rating Upgraded by Zacks Investment Research

Zacks Investment Research upgraded shares of Hostess Brands (NASDAQ:TWNK) from a sell rating to a hold rating in a research report released on Thursday morning.

According to Zacks, “Hostess Brands, Inc. is involved in developing, manufacturing, marketing, selling and distributing sweet goods primarily in the United States. The company produces new and classic treats which includes Ding Dongs, Ho Hos, Donettes, Fruit Pies as well as Twinkies and CupCakes. Hostess Brands, Inc. is based in Kansas City, Missouri. “

A number of other research analysts have also weighed in on the company. BidaskClub lowered Hostess Brands from a hold rating to a sell rating in a report on Friday, September 21st. Citigroup started coverage on Hostess Brands in a report on Wednesday, September 26th. They issued a neutral rating and a $13.00 price objective on the stock. SunTrust Banks lowered Hostess Brands from a buy rating to a hold rating in a report on Wednesday, August 8th. Finally, Royal Bank of Canada lowered Hostess Brands from an outperform rating to a sector perform rating in a report on Wednesday, August 8th. Eight analysts have rated the stock with a hold rating and three have given a buy rating to the company. The stock has an average rating of Hold and an average target price of $16.00.

Shares of TWNK stock traded up $0.05 during mid-day trading on Thursday, reaching $10.73. The stock had a trading volume of 108,579 shares, compared to its average volume of 1,125,102. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.75 and a current ratio of 2.03. The firm has a market capitalization of $1.42 billion, a PE ratio of 16.90 and a beta of -0.04. Hostess Brands has a 1-year low of $10.62 and a 1-year high of $15.40.

Hostess Brands (NASDAQ:TWNK) last announced its quarterly earnings data on Tuesday, August 7th. The company reported $0.14 earnings per share for the quarter, missing analysts’ consensus estimates of $0.18 by ($0.04). The firm had revenue of $215.85 million during the quarter, compared to analyst estimates of $219.50 million. Hostess Brands had a net margin of 28.58% and a return on equity of 3.87%. Sell-side analysts forecast that Hostess Brands will post 0.55 earnings per share for the current year.

In related news, insider Andrew Wilson Jacobs bought 8,275 shares of the company’s stock in a transaction that occurred on Friday, August 10th. The shares were purchased at an average cost of $12.15 per share, with a total value of $100,541.25. Following the completion of the acquisition, the insider now directly owns 27,209 shares in the company, valued at $330,589.35. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Larry E. Bodner bought 10,000 shares of the company’s stock in a transaction that occurred on Tuesday, August 14th. The shares were bought at an average cost of $11.93 per share, for a total transaction of $119,300.00. Following the completion of the acquisition, the director now owns 26,609 shares of the company’s stock, valued at $317,445.37. The disclosure for this purchase can be found here. 24.60% of the stock is owned by company insiders.

A number of institutional investors have recently bought and sold shares of the stock. Fenimore Asset Management Inc. grew its holdings in Hostess Brands by 39.8% during the third quarter. Fenimore Asset Management Inc. now owns 1,194,721 shares of the company’s stock worth $13,226,000 after acquiring an additional 340,008 shares during the period. Northern Trust Corp grew its holdings in Hostess Brands by 4.3% during the second quarter. Northern Trust Corp now owns 1,109,170 shares of the company’s stock worth $15,085,000 after acquiring an additional 45,649 shares during the period. Bank of New York Mellon Corp grew its holdings in Hostess Brands by 22.5% during the second quarter. Bank of New York Mellon Corp now owns 867,850 shares of the company’s stock worth $11,803,000 after acquiring an additional 159,455 shares during the period. Nomura Holdings Inc. grew its holdings in Hostess Brands by 64.1% during the second quarter. Nomura Holdings Inc. now owns 102,448 shares of the company’s stock worth $1,393,000 after acquiring an additional 40,000 shares during the period. Finally, Verition Fund Management LLC acquired a new stake in Hostess Brands during the second quarter worth about $208,000. 84.96% of the stock is currently owned by hedge funds and other institutional investors.

Hostess Brands Company Profile

Hostess Brands, Inc, a packaged food company, develops, manufactures, markets, sells, and distributes fresh sweet baked goods in the United States. It primarily offer coffee cakes, cinnamon rolls, honey buns, brownies, bread and buns, jumbo muffins, and eclairs under the Twinkies, CupCakes, Ding Dongs, Zingers, HoHos, Donettes, Dolly Madison, and Superior on Main brands.

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