Shares of TreeHouse Foods, Inc. (NYSE:THS) are facing a cautious outlook from analysts, who have set a consensus price target of $24.67. This assessment comes from nine ratings firms currently covering the company, according to data from MarketBeat.com. The majority of these analysts—seven—have issued a hold recommendation, while two have classified the stock as a sell.
Recent evaluations highlight concerns about the company’s performance. On October 24, 2023, Zacks Research downgraded TreeHouse Foods from a hold rating to a strong sell, citing underlying issues in the business. Similarly, William Blair revised its stance, moving from an outperform to a hold rating on November 11, 2023. In that same report, Barclays raised its price target from $21.00 to $23.00 while maintaining an equal weight rating.
Further assessments have been made by Weiss Ratings, which reiterated a sell rating on December 1, 2023, and Truist Financial, which increased its price target from $20.00 to $22.50, also assigning a hold rating.
Financial Performance and Market Reactions
TreeHouse Foods recently reported its quarterly earnings on November 10, 2023. The company announced earnings per share (EPS) of $0.43, falling short of analysts’ expectations of $0.53 by $0.10. This performance reflects a positive return on equity of 5.52%, yet the company reported a negative net margin of 7.25%. Revenue for the quarter totaled $841.9 million, below the estimated $853.53 million, though it marked a slight increase of 0.1% compared to the previous year.
Analysts project TreeHouse Foods will achieve an EPS of $1.94 for the current fiscal year, indicating a mixed outlook for the company moving forward.
Institutional Investment Activity
Recent changes in institutional investor positions also reflect a strategic interest in TreeHouse Foods. Sessa Capital IM L.P. boosted its stake by 29.5% during the first quarter, now holding 4.2 million shares valued at approximately $113.78 million after acquiring an additional 957,517 shares.
Similarly, Two Sigma Investments LP increased its holdings by an impressive 483.4% in the third quarter, now owning 379,089 shares worth around $7.66 million. Ameriprise Financial Inc. also expanded its position by 74.6%, now possessing 680,279 shares valued at $13.75 million.
Other notable institutional investors include Marshall Wace LLP, which raised its stake by 379.3%, and Bridgeway Capital Management LLC, which acquired a new position valued at $6.73 million. Overall, institutional investors currently hold approximately 99.81% of TreeHouse Foods’ stock, indicating strong confidence in the company’s long-term potential despite short-term challenges.
TreeHouse Foods Inc. continues to manufacture and distribute a range of private brand snacks and beverages across the United States and internationally. Its product line includes crackers, pretzels, frozen items, and various beverages, positioning the company as a significant player in the food industry. The recent analyst ratings and institutional investments will be closely monitored as TreeHouse navigates its path forward in a challenging market environment.
