Shares of BBB Foods Inc. (NYSE:TBBB) experienced a significant decline prior to the market opening on Monday, starting at $30.85, a drop from the previous close of $31.80. The stock last traded at $31.8050, with a trading volume of 27,542 shares.
Analysts Adjust Ratings on BBB Foods
Several analysts have recently provided insights regarding BBB Foods shares. On August 2, Wall Street Zen adjusted its rating from “hold” to “sell.” This was followed by a downgrade from Zacks Research on November 10, which shifted its rating from “hold” to “strong sell.” In contrast, JPMorgan Chase & Co. raised its price target for BBB Foods from $35.50 to $39.00 while maintaining an “overweight” rating. Overall, three analysts rated the stock as a Buy, two as Hold, and two as Sell, resulting in an average rating of “Hold” with a consensus target price of $34.80, according to MarketBeat.
Earnings Report Reveals Challenges
BBB Foods released its quarterly earnings results on November 19, reporting an earnings per share (EPS) of ($0.66), which missed analysts’ consensus estimates of ($0.43) by $0.23. The company also recorded a negative return on equity of 44.56% and a net margin of 2.61%. However, revenue for the quarter reached $1.11 billion, surpassing the consensus estimate of $1.06 billion. Analysts predict that BBB Foods will achieve an EPS of 0.15 for the current year.
Institutional trading activity surrounding BBB Foods has also seen notable changes. Various hedge funds and institutional investors have adjusted their holdings. Capital Research Global Investors increased its position by 2.6%, now owning 5,882,050 shares valued at $158.58 million following the acquisition of an additional 151,003 shares. Similarly, 12 West Capital Management LP raised its stake by 39.8%, acquiring 3,382,770 shares worth $91.2 million.
Other investors, such as Wasatch Advisors LP and Ameriprise Financial Inc., have also boosted their holdings by 23.8% and 73.2%, respectively. Currently, institutional investors and hedge funds hold approximately 8.42% of the stock.
Overview of BBB Foods
BBB Foods Inc. operates a chain of grocery retail stores in Mexico, offering a diverse range of products including household cleaning supplies, personal hygiene items, cosmetics, pharmacy products, and general merchandise. The company also sells food and beverages, pet supplies, and various snacks.
As investors and analysts closely monitor BBB Foods, recent changes in ratings and earnings performance reflect both challenges and opportunities for the company moving forward.
