Shares of BBB Foods Inc. (NYSE:TBBB) opened lower on Monday, dropping from a previous close of $31.80 to $30.85. This decline comes as several analysts have reassessed the stock, leading to concerns among investors. The last recorded trading price for BBB Foods was $31.8050, with a trading volume of 27,542 shares.
Analysts Downgrade Ratings
In recent evaluations, analysts have issued varied recommendations regarding BBB Foods’ stock. On August 2, 2023, Wall Street Zen downgraded the stock from a “hold” rating to a “sell” rating. Following this, Zacks Research made a similar move on November 10, 2023, lowering its rating from “hold” to “strong sell.” Meanwhile, Weiss Ratings maintained a “sell (d)” rating on October 8, 2023.
Notably, on October 20, 2023, JPMorgan Chase & Co. raised its price target for the stock from $35.50 to $39.00, while assigning it an “overweight” rating. Currently, three analysts have rated the stock as a Buy, two have given a Hold rating, and two have issued Sell ratings. According to MarketBeat, BBB Foods holds an average rating of “Hold” with a consensus target price of $34.80.
Quarterly Earnings Report Misses Expectations
BBB Foods released its quarterly earnings results on November 19, 2023, revealing a loss of ($0.66) earnings per share (EPS), which fell short of analysts’ expectations of ($0.43) by $0.23. The company reported revenue of $1.11 billion for the quarter, surpassing the consensus estimate of $1.06 billion. Despite this revenue growth, the company experienced a negative return on equity of 44.56% and a negative net margin of 2.61%. Analysts predict that BBB Foods will report $0.15 earnings per share for the current fiscal year.
Institutional Investor Activity
Recent changes in institutional ownership reflect a mix of confidence and caution regarding BBB Foods. Capital Research Global Investors increased its position by 2.6% in the third quarter, now holding 5,882,050 shares worth approximately $158.58 million after acquiring an additional 151,003 shares. Similarly, 12 West Capital Management LP raised its stake by 39.8%, now owning 3,382,770 shares valued at $91.20 million.
Wasatch Advisors LP also increased its holdings by 23.8%, bringing its total to 2,712,916 shares worth about $73.14 million. Ameriprise Financial Inc. significantly grew its stake by 73.2%, now holding 1,634,417 shares valued at $43.61 million after acquiring an additional 690,560 shares. Additionally, 3G Capital Partners LP increased its holdings by 6.7%, now owning 1,600,000 shares worth approximately $43.14 million. Currently, institutional investors and hedge funds own 8.42% of BBB Foods.
About BBB Foods Inc., the company operates a chain of grocery retail stores in Mexico, offering a wide range of products including household cleaning items, personal hygiene products, cosmetics, pharmacy goods, and various food items.
Investors remain watchful as the situation with BBB Foods evolves, particularly in light of recent analyst recommendations and financial performance metrics.
