Chevy Chase Trust Increases Stake in Campbell’s to $3.19 Million

Chevy Chase Trust Holdings LLC has strengthened its position in The Campbell’s Company (NASDAQ: CPB) by increasing its stake by 0.7% during the second quarter of 2023. This move brings the institutional investor’s total holdings to 104,200 shares, valued at approximately $3.19 million based on its latest disclosure to the Securities and Exchange Commission (SEC).

The company’s recent filings reveal that Chevy Chase Trust acquired an additional 764 shares during the period. Other hedge funds have also adjusted their investments in Campbell’s. Notably, Nuveen LLC established a new stake worth about $65.59 million in the first quarter, while Vanguard Group Inc. increased its holding by 2.1%, owning 24,120,172 shares valued at $962.88 million after purchasing 494,567 shares.

Additionally, KBC Group NV raised its stake significantly by 182.0% in the same quarter, now holding 498,216 shares valued at $19.89 million. Other investors, such as Invesco Ltd. and Cerity Partners LLC, have also bolstered their positions in Campbell’s, further reflecting a robust interest from institutional investors. As of now, institutional investors and hedge funds collectively own 52.35% of the company’s stock.

Analysts’ Outlook on Campbell’s Stock

Several research analysts have recently provided insights into Campbell’s stock performance. UBS Group reduced its price target from $33.00 to $30.00, issuing a “sell” rating. Conversely, JPMorgan Chase & Co. initiated coverage with a “neutral” rating and a price objective of $33.00.

Meanwhile, Morgan Stanley raised its target from $32.00 to $33.00, maintaining an “equal weight” rating. Stifel Nicolaus lowered its target from $38.00 to $34.00 and recommended a “hold” rating. Wells Fargo & Company also increased its target from $32.00 to $34.00, reiterating an “equal weight” rating.

The consensus rating for Campbell’s stock is currently “Reduce,” with a target price averaging $34.82. Of the analysts covering the stock, three have a “buy” rating, fifteen recommend holding, and five suggest selling.

Campbell’s Financial Performance and Future Guidance

The Campbell’s Company reported its latest earnings on September 3, 2023, revealing earnings per share (EPS) of $0.62, surpassing analysts’ expectations of $0.57 by $0.05. The company achieved a revenue of $2.32 billion, slightly below the anticipated $2.33 billion. This represents a year-over-year revenue increase of 1.2%.

The firm has projected its fiscal year 2026 guidance at an EPS range of $2.40 to $2.55. Analysts forecast an EPS of $3.15 for the current year, indicating a cautious optimism about Campbell’s financial trajectory.

In addition to its financial results, Campbell’s announced a quarterly dividend of $0.39, set to be paid on November 3, 2023. Shareholders on record as of October 2, 2023 will receive this dividend, which translates to an annual yield of 5.0%. The company’s payout ratio currently stands at 78.00%.

As the Campbell’s Company, formerly known as Campbell Soup Company, continues to navigate the food and beverage market both domestically and internationally, it remains a focal point for investors and analysts alike, reflecting broader trends in consumer goods and market dynamics.