Scott E. Lerner, Executive Vice President and General Counsel of B&G Foods Inc. (NYSE:BGS), recently acquired 7,611 shares of the company’s common stock. The transaction was completed on November 8, with shares purchased at a weighted average price of $6.5692, totaling approximately $49,998. The purchase was executed in multiple trades, with prices ranging from $6.5550 to $6.5700 per share. Following this acquisition, Lerner’s direct ownership in B&G Foods stands at 196,755 shares.
In other recent news, B&G Foods reported mixed third-quarter earnings, with net sales reaching $461.1 million and adjusted EBITDA at $70.4 million, both figures falling short of expectations. However, the company demonstrated a net income recovery, posting a net income of $7.5 million, a bounce back from a net loss in the previous year. B&G Foods also revised its fiscal 2024 guidance to $1.92 billion to $1.95 billion in net sales, indicating a cautious yet optimistic outlook for 2025.
TD Cowen recently adjusted its outlook on B&G Foods, reducing the price target to $7.50 from the previous $8.00, while continuing to advise investors to sell. This move comes after B&G Foods reported earnings that fell short of third-quarter expectations and provided a reduced forecast for the fourth quarter. The company has indicated they anticipate a sequential improvement in sales throughout 2025, but also hinted at expecting another challenging year ahead, with potential negative sales in the first half.
The Spices and Flavor Solutions segment saw a 2.6% sales increase, while other segments experienced declines. The company is also undergoing portfolio restructuring, with potential divestitures of non-core assets. These recent developments are part of B&G Foods’ strategic efforts to drive growth and manage costs amidst a challenging market environment.
InvestingPro Insights
Scott E. Lerner’s recent purchase of B&G Foods Inc. (NYSE:BGS) shares comes at a time when the stock appears to be trading at a significant discount. According to InvestingPro data, BGS is currently trading near its 52-week low, with a price-to-book ratio of just 0.69 as of the last twelve months ending Q3 2024. This valuation metric suggests the stock may be undervalued relative to its assets.
The company’s attractive dividend yield of 11.71% aligns with an InvestingPro Tip indicating that B&G Foods “pays a significant dividend to shareholders.” Moreover, the company has maintained dividend payments for 18 consecutive years, demonstrating a commitment to returning value to investors despite recent challenges.
While the stock has experienced significant price declines over various time frames, with a 41.28% drop over the past six months, another InvestingPro Tip suggests that the “RSI indicates the stock is in oversold territory.” This technical indicator, coupled with the insider buying activity, may signal a potential turnaround opportunity for value-focused investors.
It’s worth noting that InvestingPro offers 13 additional tips for B&G Foods, providing a more comprehensive analysis for those seeking deeper insights into the company’s financial health and market position.
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