Maxim Group analyst Anthony Vendetti maintained a Buy rating on Landec Corp (LNDC) today and set a price target of $20. The company’s shares closed yesterday at $15.39, close to its 52-week high of $15.60.
Vendetti wrote:
“Market open, LNDC announced the acquisition of guacamole producer in cash and $20M in stock. The cash portion was funded by a $60M term loan accruing interest of about 4.75%. The equity portion includes roughly 1.4M shares of common stock. Yucatan Foods is expected to provide pro forma FY19 (May) revenue of $55M- $60M and adjusted EBITDA of $6M-$8M. It will be consolidated with LNDC for about half of FY19, resulting in expected reported incremental revenue of $25M-$30M and net loss per share of ($0.12)-($0.15) due to one-time costs. Management expects double-digit revenue growth and is targeting a 30% gross margin, with the acquisition to be accretive to the bottom line in FY20.”
According to TipRanks.com, Vendetti is a 4-star analyst with an average return of 8.0% and a 52.2% success rate. Vendetti covers the Healthcare sector, focusing on stocks such as Ellex Medical Lasers Limited, Restoration Robotics Inc, and Xtant Medical Holdings.
Currently, the analyst consensus on Landec Corp is a Moderate Buy with an average price target of $18.
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Based on Landec Corp’s latest earnings release for the quarter ending August 31, the company reported a quarterly net profit of $190K. In comparison, last year the company had a net profit of $487K.
Based on the recent corporate insider activity of 26 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of LNDC in relation to earlier this year. Most recently, in October 2018, Gregory Skinner, the CFO of LNDC bought 8,913 shares for a total of $125,762.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
Landec Corp. engages in the design, development, manufacture and sale of health and wellness products for food and biomaterials markets. It operates through the following segments: Packaged Fresh Vegetables, Biomaterials, and Other. The Packaged Fresh Vegetables segment markets and packs specialty packaged whole, and fresh-cut fruit and vegetables.
