Shares of Farmer Bros Co (NASDAQ:FARM) dropped 15.9% during mid-day trading on Wednesday following a weaker than expected earnings announcement. The company traded as low as $10.26 and last traded at $11.77, approximately 715,629 shares were traded during trading. An increase of 604% from the average daily volume of 101,583 shares. The stock had previously closed at $14.00.
The company reported ($0.52) earnings per share for the quarter, missing the consensus estimate of ($0.15) by ($0.37). Farmer Bros had a negative net margin of 10.72% and a negative return on equity of 3.34%. The firm had revenue of $142.05 million for the quarter, compared to analysts’ expectations of $146.90 million.
A number of research firms have recently commented on FARM. ValuEngine upgraded Farmer Bros from a “hold” rating to a “buy” rating in a research report on Monday, August 12th. Zacks Investment Research upgraded shares of Farmer Bros from a “strong sell” rating to a “hold” rating in a research report on Wednesday, July 10th. BidaskClub downgraded shares of Farmer Bros from a “sell” rating to a “strong sell” rating in a research note on Wednesday, August 7th. B. Riley lowered their price objective on shares of Farmer Bros from $21.00 to $10.50 and set a “neutral” rating for the company in a research report on Wednesday. Finally, Lake Street Capital dropped their price objective on shares of Farmer Bros from $26.00 to $15.00 and set a “buy” rating for the company in a research note on Wednesday. One investment analyst has rated the stock with a sell rating, three have assigned a hold rating and two have assigned a buy rating to the stock. The stock has an average rating of “Hold” and a consensus price target of $15.17.
In related news, major shareholder Levin Easterly Partners Llc acquired 94,497 shares of the stock in a transaction dated Wednesday, June 19th. The stock was acquired at an average cost of $17.02 per share, with a total value of $1,608,338.94. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Insiders bought a total of 111,260 shares of company stock valued at $1,878,262 over the last ninety days. Corporate insiders own 10.90% of the company’s stock.
Several institutional investors have recently added to or reduced their stakes in the company. BNP Paribas Arbitrage SA boosted its stake in shares of Farmer Bros by 415.4% during the 1st quarter. BNP Paribas Arbitrage SA now owns 2,103 shares of the company’s stock worth $42,000 after purchasing an additional 1,695 shares during the period. JPMorgan Chase & Co. boosted its position in shares of Farmer Bros by 22.7% during the second quarter. JPMorgan Chase & Co. now owns 3,772 shares of the company’s stock valued at $60,000 after buying an additional 698 shares during the period. Bank of America Corp DE grew its stake in shares of Farmer Bros by 39.3% during the fourth quarter. Bank of America Corp DE now owns 7,573 shares of the company’s stock valued at $177,000 after buying an additional 2,137 shares during the last quarter. Millennium Management LLC purchased a new stake in shares of Farmer Bros in the fourth quarter worth approximately $225,000. Finally, Wells Fargo & Company MN raised its holdings in shares of Farmer Bros by 5.5% in the second quarter. Wells Fargo & Company MN now owns 19,632 shares of the company’s stock worth $322,000 after buying an additional 1,016 shares during the period. Hedge funds and other institutional investors own 84.07% of the company’s stock.
The company has a current ratio of 2.03, a quick ratio of 0.93 and a debt-to-equity ratio of 0.74. The stock has a market capitalization of $224.25 million, a P/E ratio of 90.54, a price-to-earnings-growth ratio of 7.83 and a beta of 0.13. The stock has a 50 day moving average of $13.80 and a 200-day moving average of $18.22.
About Farmer Bros (NASDAQ:FARM)
Farmer Bros. Co engages in the manufacture, wholesale, and distribution of coffee, tea, and culinary products in the United States. The company offers roast and ground coffee; frozen liquid coffee; flavored and unflavored iced and hot teas; culinary products, including gelatins and puddings, soup bases, dressings, gravy and sauce mixes, pancake and biscuit mixes, jellies and preserves, and coffee-related products, such as coffee filters, sugar, and creamers; spices; and other beverages comprising cappuccino, cocoa, granitas, and ready-to-drink cold brew and iced coffee.
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