Utz Brands Inc. [NYSE: UTZ] gained 6.18% or 1.06 points to close at $18.20 with a heavy trading volume of 2126986 shares. The company report on November 12, 2020 that Utz Brands to Acquire ON THE BORDER® Tortilla Chips.
Expands Position in Attractive Tortilla Chip Sub-Category.
Utz Brands, Inc. (NYSE: UTZ) (“Utz” or the “Company”), a leading U.S. manufacturer of branded salty snacks, announced that its subsidiaries Utz Quality Foods, LLC (“UQF”) and Heron Holding Corporation have entered into a definitive agreement to acquire Truco Enterprises (“Truco”), a leading seller of tortilla chips, salsa and queso under the ON THE BORDER® (“OTB”) brand, from Insignia Capital Group for a total purchase price of $480 million, subject to a customary post-closing purchase price adjustment. The acquisition includes all rights to the ON THE BORDER® trademarks for use in the manufacture, sale, and distribution of snack food products in the United States and certain other international markets. The transaction represents an acquisition multiple of approximately 9.2x estimated fiscal 2020 Truco Adjusted EBITDA of $50 million excluding estimated synergies, and 8.4x estimated fiscal 2020 Truco Adjusted EBITDA including run-rate cost synergies of at least $5 million, in each case including approximately $20 million in net present value from expected tax assets resulting from the transaction. Utz expects the transaction to be accretive to earnings in 2021 and beyond. The transaction is expected to close in December 2020 and is subject to customary closing conditions including the receipt of regulatory approvals.
It opened the trading session at $17.58, the shares rose to $18.73 and dropped to $17.50, the range by which the price of stock traded the whole day. The daily chart for UTZ points out that the company has recorded 69.62% gains over the past six months. However, it is still -84.96% lower than its most recent low trading price.
If we look at the average trading volume of 872.98K shares, UTZ reached to a volume of 2126986 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about Utz Brands Inc. [UTZ]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for UTZ shares is $19.58 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on UTZ stock is a recommendation set at 2.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Oppenheimer have made an estimate for Utz Brands Inc. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on October 08, 2020. While these analysts kept the previous recommendation, Goldman raised their target price to Neutral. The new note on the price target was released on September 25, 2020, representing the official price target for Utz Brands Inc. stock. Previously, the target price had yet another raise to $21, while Citigroup analysts kept a Buy rating on UTZ stock.
The Average True Range (ATR) for Utz Brands Inc. is set at 0.54 The Price to Book ratio for the last quarter was 2.34, with the Price to Cash per share for the same quarter was set at 0.00.
Trading performance analysis for UTZ stock
Utz Brands Inc. [UTZ] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 2.54. With this latest performance, UTZ shares gained by 1.96% in over the last four-week period, additionally plugging by 69.62% over the last 6 months – not to mention a rise of 78.08% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for UTZ stock in for the last two-week period is set at 60.78, with the RSI for the last a single of trading hit 66.76, and the three-weeks RSI is set at 59.89 for Utz Brands Inc. [UTZ]. The present Moving Average for the last 50 days of trading for this stock 17.60, while it was recorded at 17.32 for the last single week of trading, and 13.41 for the last 200 days.
Utz Brands Inc. [UTZ]: A deeper dive into fundamental analysis
Utz Brands Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.20 and a Current Ratio set at 0.20.
Utz Brands Inc. [UTZ]: An earnings per share (EPS) analysis
The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for UTZ. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Utz Brands Inc. go to 64.87%.
An analysis of insider ownership at Utz Brands Inc. [UTZ]
There are presently around $685 million, or 67.90% of UTZ stock, in the hands of institutional investors. The top three institutional holders of UTZ stocks are: BAMCO INC /NY/ with ownership of 4,300,000, which is approximately New of the company’s market cap and around 7.50% of the total institutional ownership; NEUBERGER BERMAN GROUP LLC, holding 3,835,336 shares of the stock with an approximate value of $69.8 million in UTZ stocks shares; and MORGAN STANLEY, currently with $63.28 million in UTZ stock with ownership of nearly New of the company’s market capitalization.
75 institutional holders increased their position in Utz Brands Inc. [NYSE:UTZ] by around 24,001,562 shares. Additionally, 43 investors decreased positions by around 17,324,160 shares, while 4 investors held positions by with 3,696,941 shares. The mentioned changes placed institutional holdings at 37,628,781 shares, according to the latest SEC report filing. UTZ stock had 57 new institutional investments in for a total of 19,907,666 shares, while 32 institutional investors sold positions of 11,161,702 shares during the same period.