Shares of BBB Foods Inc. (NYSE:TBBB) opened lower on Monday, gapping down to $30.85 from a previous close of $31.80. The stock last traded at $31.8050, with a volume of 27,542 shares changing hands. This decline follows a series of mixed reviews from analysts concerning the company’s financial outlook.
Analysts’ reports reflect a cautious sentiment regarding BBB Foods. On August 2, Wall Street Zen downgraded the stock from a “hold” rating to a “sell” rating. Similarly, Zacks Research issued a “strong sell” rating on November 10. In contrast, JPMorgan Chase & Co. recently increased their price target for BBB Foods from $35.50 to $39.00, maintaining an “overweight” rating as of October 20. The consensus among analysts includes three buy ratings, two holds, and two sells, leading to an average rating of “hold” with a target price of $34.80, according to MarketBeat.
Quarterly Performance Raises Concerns
The company reported its quarterly earnings on November 19, revealing a loss of $(0.66) per share, which fell short of analysts’ expectations of $(0.43) by $(0.23). This disappointing performance contributed to a negative return on equity of 44.56% and a net margin of -2.61%. Despite the earnings miss, BBB Foods generated revenues of $1.11 billion, exceeding the consensus estimate of $1.06 billion. Analysts project that BBB Foods will achieve earnings of $0.15 per share for the current year.
In response to the stock’s performance and the recent earnings report, some investors are reassessing their positions in BBB Foods.
Institutional Investors Adjust Their Holdings
Recent trading activity indicates notable changes among institutional investors. Capital Research Global Investors increased its stake in BBB Foods by 2.6% during the third quarter, now holding 5,882,050 shares valued at approximately $158.58 million. 12 West Capital Management LP raised its holdings by an impressive 39.8%, acquiring an additional 963,712 shares, bringing their total to 3,382,770 shares valued at around $91.19 million.
Other notable investors include Wasatch Advisors LP, which increased its position by 23.8% with an additional 520,904 shares, and Ameriprise Financial Inc., which grew its stake by 73.2%, now owning 1,634,417 shares valued at approximately $43.61 million. Currently, institutional investors and hedge funds hold 8.42% of BBB Foods’ stock.
About BBB Foods: The company operates a chain of grocery retail stores in Mexico, offering a wide range of products including household cleaning supplies, personal hygiene items, cosmetics, pharmacy products, and a variety of food and beverage items.
As the market continues to react to these developments, shareholders and potential investors are closely monitoring the performance and strategic direction of BBB Foods.
