Farmer Bros (FARM) Lowered to “Strong Sell” at Zacks Investment Research

Zacks Investment Research downgraded shares of Farmer Bros (NASDAQ:FARM) from a hold rating to a strong sell rating in a research note issued to investors on Friday.

According to Zacks, “Farmer Bros. Co. is in the business of roasting, packaging and distributing coffee and allied products to restaurants, hotels, hospitals, convenience stores and fast food outlets. The company’s primary raw material is green coffee. Green coffee is purchased through domestic commodity brokers. Coffee is an agricultural commodity, and is subject to fluctuations of both price and supply. “

Several other research firms have also recently issued reports on FARM. BidaskClub upgraded Farmer Bros from a strong sell rating to a sell rating in a research report on Thursday, August 23rd. ValuEngine cut Farmer Bros from a buy rating to a hold rating in a research report on Monday, July 16th. Finally, B. Riley cut their target price on Farmer Bros from $34.00 to $32.00 and set a buy rating for the company in a research report on Thursday, September 27th. Two analysts have rated the stock with a sell rating, one has given a hold rating and three have given a buy rating to the company’s stock. The company currently has an average rating of Hold and an average target price of $33.75.

Shares of NASDAQ:FARM traded up $0.15 during trading on Friday, hitting $24.97. 100,528 shares of the company’s stock were exchanged, compared to its average volume of 56,003. Farmer Bros has a 52-week low of $23.02 and a 52-week high of $35.05. The stock has a market capitalization of $403.90 million, a P/E ratio of 192.08, a P/E/G ratio of 9.44 and a beta of 0.22.

Farmer Bros (NASDAQ:FARM) last released its earnings results on Wednesday, November 7th. The company reported ($0.18) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.09) by ($0.09). Farmer Bros had a positive return on equity of 1.04% and a negative net margin of 3.88%. The business had revenue of $147.44 million for the quarter, compared to analysts’ expectations of $146.39 million. During the same quarter in the prior year, the business posted $0.05 EPS. The business’s revenue for the quarter was up 12.0% compared to the same quarter last year. Research analysts predict that Farmer Bros will post 0.32 EPS for the current year.

In other Farmer Bros news, CEO Michael H. Keown sold 23,333 shares of the firm’s stock in a transaction that occurred on Monday, September 10th. The stock was sold at an average price of $28.03, for a total transaction of $654,023.99. Following the completion of the transaction, the chief executive officer now owns 68,405 shares in the company, valued at approximately $1,917,392.15. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 10.90% of the company’s stock.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in FARM. Wells Fargo & Company MN grew its holdings in Farmer Bros by 93.0% during the 1st quarter. Wells Fargo & Company MN now owns 31,218 shares of the company’s stock valued at $942,000 after buying an additional 15,046 shares in the last quarter. Northern Trust Corp boosted its holdings in shares of Farmer Bros by 10.1% in the 1st quarter. Northern Trust Corp now owns 171,940 shares of the company’s stock worth $5,193,000 after purchasing an additional 15,709 shares during the period. BlackRock Inc. boosted its holdings in shares of Farmer Bros by 1.7% in the 1st quarter. BlackRock Inc. now owns 588,867 shares of the company’s stock worth $17,784,000 after purchasing an additional 9,577 shares during the period. JPMorgan Chase & Co. boosted its holdings in shares of Farmer Bros by 171.3% in the 1st quarter. JPMorgan Chase & Co. now owns 6,269 shares of the company’s stock worth $189,000 after purchasing an additional 3,958 shares during the period. Finally, Russell Investments Group Ltd. boosted its holdings in shares of Farmer Bros by 11.9% in the 1st quarter. Russell Investments Group Ltd. now owns 27,263 shares of the company’s stock worth $824,000 after purchasing an additional 2,891 shares during the period. Institutional investors and hedge funds own 59.35% of the company’s stock.

About Farmer Bros

Farmer Bros. Co engages in the manufacture, wholesale, and distribution of coffee, tea, and culinary products in the United States. The company offers roast and ground coffee; frozen liquid coffee; flavored and unflavored iced and hot teas; culinary products, including gelatins and puddings, soup bases, dressings, gravy and sauce mixes, pancake and biscuit mixes, jellies and preserves, and coffee-related products, such as coffee filters, sugar, and creamers; spices; and other beverages comprising cappuccino, cocoa, granitas, and ready-to-drink cold brew and iced coffee.

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