Albertsons Companies (NYSE:ACI) Lowered to “Hold” Rating by UBS Group

Albertsons Companies (NYSE:ACI) was downgraded by equities research analysts at UBS Group from a “strong-buy” rating to a “hold” rating in a research note issued on Monday,Zacks.com reports.

A number of other equities research analysts also recently commented on ACI. The Goldman Sachs Group reduced their target price on Albertsons Companies from $24.00 to $16.00 and set a “buy” rating for the company in a report on Friday, July 24th. Wells Fargo & Company downgraded shares of Albertsons Companies from an “overweight” rating to an “equal weight” rating and cut their price target for the company from $18.00 to $11.00 in a report on Thursday, July 23rd. Weiss Ratings cut shares of Albertsons Companies from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Friday, May 29th. Citigroup reiterated a “neutral” rating and issued a $11.00 price objective (down from $17.00) on shares of Albertsons Companies in a research note on Monday. Finally, Barclays decreased their price objective on shares of Albertsons Companies from $17.00 to $12.00 and set an “underweight” rating on the stock in a report on Friday, July 24th. Five analysts have rated the stock with a Buy rating, nine have given a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Albertsons Companies presently has an average rating of “Hold” and a consensus target price of $15.31.

Albertsons Companies Stock Performance

Shares of ACI stock opened at $11.63 on Monday. The company has a current ratio of 0.84, a quick ratio of 0.21 and a debt-to-equity ratio of 5.22. The stock has a 50 day simple moving average of $14.61 and a 200-day simple moving average of $16.28. The company has a market cap of $5.70 billion, a price-to-earnings ratio of 145.44, a price-to-earnings-growth ratio of 1.52 and a beta of 0.42. Albertsons Companies has a 12-month low of $10.86 and a 12-month high of $20.02.

Albertsons Companies (NYSE:ACI) last posted its quarterly earnings results on Thursday, July 23rd. The company reported $0.42 earnings per share for the quarter, missing analysts’ consensus estimates of $0.54 by ($0.12). Albertsons Companies had a net margin of 0.08% and a return on equity of 45.59%. The business had revenue of $24.94 billion during the quarter, compared to analysts’ expectations of $24.84 billion. During the same quarter last year, the firm earned $0.55 earnings per share. The firm’s quarterly revenue was up .2% compared to the same quarter last year. Albertsons Companies has set its FY 2026 guidance at 1.750-1.850 EPS. On average, equities analysts forecast that Albertsons Companies will post 2.11 EPS for the current year.

Insiders Place Their Bets

In other news, EVP Thomas M. Moriarty bought 170,500 shares of the stock in a transaction on Monday, July 27th. The shares were bought at an average price of $11.51 per share, with a total value of $1,962,455.00. Following the completion of the acquisition, the executive vice president owned 308,946 shares of the company’s stock, valued at approximately $3,555,968.46. This trade represents a 123.15% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Company insiders own 1.18% of the company’s stock.

Institutional Investors Weigh In On Albertsons Companies

Several institutional investors and hedge funds have recently made changes to their positions in ACI. Goldman Sachs Group Inc. increased its holdings in Albertsons Companies by 109.5% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,542,468 shares of the company’s stock valued at $33,919,000 after acquiring an additional 806,336 shares in the last quarter. Empowered Funds LLC purchased a new stake in shares of Albertsons Companies in the first quarter valued at about $1,090,000. M&T Bank Corp grew its position in shares of Albertsons Companies by 21.4% in the second quarter. M&T Bank Corp now owns 14,364 shares of the company’s stock valued at $308,000 after purchasing an additional 2,528 shares during the last quarter. First Trust Advisors LP grew its position in shares of Albertsons Companies by 39.3% in the second quarter. First Trust Advisors LP now owns 504,944 shares of the company’s stock valued at $10,861,000 after purchasing an additional 142,457 shares during the last quarter. Finally, Bank of Nova Scotia increased its stake in shares of Albertsons Companies by 5.4% during the 2nd quarter. Bank of Nova Scotia now owns 14,041 shares of the company’s stock worth $302,000 after purchasing an additional 723 shares in the last quarter. 71.35% of the stock is currently owned by hedge funds and other institutional investors.

Key Albertsons Companies News

Here are the key news stories impacting Albertsons Companies this week:

• Positive Sentiment: ACI Edge could generate $200 million in savings. Albertsons’ technology and operating initiative is expected to improve efficiency and reduce costs, offering a potential earnings benefit if successfully implemented. Albertsons’ ACI Edge will produce $200M in savings
• Positive Sentiment: Options activity indicates some speculative interest. Traders purchased 4,588 ACI call options Monday, approximately 41% above typical call volume. This may reflect expectations for a rebound, although options activity alone does not establish a fundamental improvement.
• Neutral Sentiment: Albertsons is advancing its ACI Edge operating model. The company announced a new regional structure and its Merch United initiative, which could support better execution and merchandising over time. Albertsons advances ACI Edge with new regional operating model
• Negative Sentiment: UBS cut its ACI price target to $12 from $20 while maintaining a Neutral rating. The sharply lower target signals reduced confidence in Albertsons’ near-term recovery and leaves limited implied upside. UBS rating update
• Negative Sentiment: Citigroup also maintained Neutral but lowered its target to $11 from $17. Citi said additional fixes are needed, reinforcing concerns about execution and profitability. Citi downgrades Albertsons to Neutral
• Negative Sentiment: The core catalyst remains Albertsons’ earnings miss and reduced fiscal 2026 outlook. Quarterly EPS came in below expectations, and management lowered its full-year adjusted EPS guidance amid consumer weakness. The company’s high leverage and very thin net margin add to investor concerns.
• Negative Sentiment: Several law firms announced investigations into Albertsons. The inquiries focus on whether investors were misled regarding fiscal 2026 sales and earnings guidance after the disappointing results and outlook reduction. These notices add legal and reputational risk, though they do not represent proven wrongdoing. Albertsons investigation notice

Albertsons Companies Company Profile

Albertsons Companies, Inc (NYSE: ACI) is one of the largest food and drug retailers in the United States, operating a diversified portfolio of grocery store banners. Founded in 1939 by Joe Albertson in Boise, Idaho, the company has grown through both organic expansion and strategic acquisitions. Its core business activities encompass the sale of fresh produce, meat, bakery items, deli offerings, pharmacy services, and general merchandise. The company’s retail operations are complemented by an in-house private-label program, featuring brands such as O Organics, Open Nature, and Lucerne, which cater to a range of customer preferences and price points.

Throughout its history, Albertsons Companies has pursued growth via mergers and partnerships.