What Are Wall Street’s Thoughts On Hostess Brands Inc. Shares (TWNK)?

The stock of Hostess Brands Inc. (NASDAQ:TWNK) increased by increased by $0.26 on Friday to finish at $18.77, up 1.40 percent. The last five days have seen an average of 2,010,840 shares of common stock traded. 16 times new highs were reached in the current year, with a gain of $4.13. The average number of shares traded over the last 20 days was 1,972,215, while the average volume over the last 50 days totaled 1,457,922.

TWNK stock appreciated 8.75% since last month. On 09/24/21, the company’s shares reached a one-month low of $17.07. The stock touched a high of $18.90 on 10/11/21, after rallying from a low of $12.63 in 52 weeks. The price of TWNK stock has risen by 28.21% or $4.13 this year, reaching a new high 16 times. Still, the stock price is down -0.69% from the 52-week high.

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Insider Transactions

There have been 143 days since Hostess Brands Inc. (TWNK) last reported insider trading activity on Jun 04. On Jun 04, See Remarks Jacobs Andrew Wilson sold 166,797 shares at $15.96 each. This transaction resulted in the insider making $2,662,714. On Nov 23, Hostess CDM Co-Invest, LLC sold 3,215,817 shares at a price of US$13.50. After the transaction, the insider now owns 444,444 shares. Hostess CDM Co-Invest, LLC had earlier sold 50,000 shares on Nov 11 for $13.74 a share. The transaction was completed for $687,240.

Valuation Metrics

Hostess Brands Inc. (TWNK) has a trailing price-to-earnings (P/E) ratio of 24.54. This level actually compares unfavorably with the industry at large, as the PE for the Packaged Foods industry stands at about 21.93. Further, its PE also compares favorably with the Consumer Defensive sector’s trailing 12 months PE ratio, which comes in at 25.23 right now. The PE ratio of Hostess Brands Inc. has varied between 51.75 and 4.523 in the last five years. Beta for the stock is 0.68. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 2.24, the price-to-book (PB) ratio of 1.47, and the price-to-cash flow ratio of 17.55.

For the three months ended June 29, Hostess Brands Inc.’s quick ratio was 2.10, while its current ratio was 2.30, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending June 29 is 0.66, and the total debt to equity ratio is 0.67. As far as profitability goes, gross margin for the trailing twelve months is 36.10% percent. Hostess Brands Inc.’s EBITDA margin for the year ended June 29 was 23.73%, whereas its operating margin stood at 17.30% for the same period. Based on annual data, it had gross profit of $355.64 million and revenue of $1.02 billion.

Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. TWNK’s return on assets (ROA) during the last 12 months has been 3.00%. There was a 4.20% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 6.30%. ROE has averaged 12.06 in the past year for the broader industry.

Earnings Surprise

According to Hostess Brands Inc.’s quarterly financial report for the quarter that ended June 29. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $291.49 million, while revenues rose by 12.1% to $265.42 million. It was predicted that Hostess Brands Inc.’s quarterly earnings would be $0.23, but it ended up being $0.21, beating the consensus by 9.50%. EBITDA was $66.28 million for the quarter. At the end of Hostess Brands Inc.’s most recent quarter ended June 29, its liabilities totaled 1.74 billion, while its total debt was $1.13 billion. Equity owned by shareholders amounts to $130.09 million.

Technical Picture

Here’s a quick look at Hostess Brands Inc.’s (TWNK) price momentum from a technical perspective. As of 22 October, the RSI 9-day stood at 77.84%, suggesting the stock is Overbought, with a 13.22% historical volatility rate.

The stochastic %K and %D were 74.94% and 66.31% respectively, while the average true range (ATR) was 0.42. Based on the 14-day stochastic reading of 90.23%, the RSI (14) reading is 74.20%. On the 9-day MACD Oscillator, the stock is at 0.23, and the 14-day reading is at 0.24.

Analyst Ratings

In its analyst report released on October 15, 2021, Credit Suisse began covering Hostess Brands Inc. (NASDAQ: TWNK). The stock was rated as an Outperform by the brokerage firm. Analysts have assigned Hostess Brands Inc. (TWNK) an Overweight rating. TWNK is a stock that is recommended for selling by 0 brokerage firms, while 3 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 0 rates it overweight and 8 others recommend it as a buy.

What is TWNK’s price target for the next 12 months?

The current consensus forecast for the stock is between $18.00 and $22.00, with a median target price of $20.00. In analyzing these forecasts, the average price target given by analysts for Hostess Brands Inc. (TWNK) is $20.33.


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