Why B&G Foods Stock Plunged Today
Shares of B&G Foods (NYSE: BGS) were down 11.2% as of 2 p.m. ET on Wednesday after analysts at Piper Sandler downgraded the stock.
Citing an 11.5% quarterly decline in B&G's U.S. retail sales according to data from retail-industry tracker SPINS/IRI (far below previous estimates for a 4.5% drop), Piper Sandler analysts lowered their rating on the leading consumer packaged-goods stock to underweight from neutral. The firm also reduced its per-share price target on B&G to $8 from $14, well below yesterday's closing price of $9.48.
Piper Sandler added that B&G's divestiture of its Back to Nature brand contributed a sales headwind of roughly 2 percentage points, and reduced Piper's own projections for organic sales in the third quarter to fall 7.5%.
Source Fool.com
