Pivotal Research analyst Ajay Jain reiterated a Sell rating on SpartanNash Co (SPTN) today and set a price target of $12. The company’s shares opened today at $14.61, close to its 52-week low of $13.34.
Jain wrote:
“We feel that the incremental competitive pressures and the wide range of operational challenges still needs to be better reflected in the updated FY19 earnings guidance. The top-line performance was better than expected in 1Q19 across all three segments. Gross margin also improved as a result of mix based on the contribution of the Martins acquisition. However, the incremental expense pressure was much greater than expected and accounted for close to 20% decline in EBITDA. This follows a double-digit EBITDA decline in FY18. By comparison, the mid-point of the updated FY19 adj. EBITDA guidance range of $190-$205 million assumes flat to slightly positive growth over the rest of FY19. We think this reflects a continued pattern of optimistic assumptions around guidance by SPTN. revised EPS estimates are $1.16 and $1.37, respectively.”
According to TipRanks.com, Jain is a 4-star analyst with an average return of 12.6% and a 59.1% success rate. Jain covers the Services sector, focusing on stocks such as Walgreens Boots Alliance, Performance Food Group, and US Food Holdings Corp.
SpartanNash Co has an analyst consensus of Moderate Sell, with a price target consensus of $14, which is a -4.2% downside from current levels. In a report released today, Barclays also maintained a Sell rating on the stock with a $13 price target.
See today’s analyst top recommended stocks >>
The company has a one-year high of $26.99 and a one-year low of $13.34. Currently, SpartanNash Co has an average volume of 261.4K.
Based on the recent corporate insider activity of 52 insiders, corporate insider sentiment is negative on the stock. Most recently, in March 2019, Shan Atkins, a Director at SPTN sold 4,676 shares for a total of $74,255.
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.
SpartanNash Co. engages in the distribution of grocery products to military commissaries in the U.S. It operates through the following segments: Military, Food Distribution, and Retail. The Military segment sells and distributes grocery products primarily to U.S. military commissaries and exchanges.
