Shares of Central Garden & Pet Company experienced a notable increase on Tuesday, October 8, 2023, following the release of a stronger than anticipated earnings report. The stock, which closed at $31.43 on the previous day, opened significantly higher at $32.89 and was last recorded at $34.2380 with a trading volume of 18,140 shares.
The company’s quarterly earnings showed a loss of $0.09 earnings per share, surpassing the consensus estimate of a loss of $0.20 by $0.11. Central Garden & Pet also reported a revenue figure of $678.18 million, exceeding expectations of $657.86 million. In terms of performance metrics, the company achieved a return on equity of 10.77% and a net margin of 4.44%. Year-on-year, the quarterly revenue demonstrated a modest increase of 1.3%, contrasting with a loss of $0.18 earnings per share reported in the same period last year.
Analyst Ratings Reflect Mixed Sentiment
Following the earnings announcement, Central Garden & Pet attracted attention from various analysts. Weiss Ratings maintained a “hold (C-)” rating for the stock, while Zacks Research downgraded it from a “strong-buy” to a “hold” rating. Canaccord Genuity Group, in contrast, reaffirmed its “buy” rating and set a price target of $50.00. Currently, one analyst rates the stock as a buy, while four others have assigned it a hold rating. MarketBeat indicates that the consensus rating for Central Garden & Pet is “hold,” with an average price target of $42.50.
Institutional Investors Adjust Portfolios
Recent activity among institutional investors also highlights growing interest in Central Garden & Pet. Versor Investments LP entered a new position in the company, investing approximately $579,000 in the first quarter. Similarly, Nuveen LLC acquired shares valued at about $1,034,000, and Aristeia Capital L.L.C. invested around $610,000. HSBC Holdings PLC increased its stake by 27.0% during the same period, now holding 9,420 shares valued at $344,000. Charles Schwab Investment Management Inc. also boosted its position by 8.8%, with ownership of 150,427 shares worth $5,515,000. Hedge funds and institutional investors currently hold 16.13% of the company’s stock.
The company maintains a debt-to-equity ratio of 0.75, a current ratio of 3.56, and a quick ratio of 2.28. Central Garden & Pet’s market capitalization stands at approximately $2.15 billion, with a price-to-earnings ratio of 15.55 and a beta of 0.66. The firm’s moving averages are currently $31.72 for the 50-day and $34.92 for the 200-day.
Central Garden & Pet Company is engaged in the production and distribution of both branded and private label products for the lawn, garden, and pet supplies markets. The company operates through two primary segments: Pet and Garden. The Pet segment includes a wide range of products such as dog treats, toys, grooming items, and supplies for various small animals.
As Central Garden & Pet continues to navigate a competitive market, its recent earnings performance and analyst ratings may play a crucial role in shaping investor sentiment moving forward.
