The stock of Hostess Brands Inc. (NASDAQ:TWNK) increased by $0.16 on Tuesday to finish at $27.69, up 0.58 percent. The last five days have seen an average of 5,668,820 shares of common stock traded. 15 times new highs were reached in the current year, with a gain of $5.25. The average number of shares traded over the last 20 days was 2,337,720, while the average volume over the last 50 days totaled 1,413,882.
TWNK stock appreciated 15.18% since last month. On 08/09/23, the company’s shares reached a one-month low of $21.79. The stock touched a high of $29.00 on 08/25/23, after rallying from a low of $21.59 in 52 weeks. The price of TWNK stock has risen by 23.40% or $5.25 this year, reaching a new high 15 times. Still, the stock price is down -4.52% from the 52-week high.
Valuation Metrics
Hostess Brands Inc. (TWNK) has a trailing price-to-earnings (P/E) ratio of 22.13. Beta for the stock is 0.60. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 2.18, the price-to-book (PB) ratio of 1.99, and the price-to-cash flow ratio of 29.28.
Financial Health
For the three months ended June 29, Hostess Brands Inc.’s quick ratio was 1.50, while its current ratio was 1.80, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending June 29 is 0.53, and the total debt to equity ratio is 0.54. As far as profitability goes, gross margin for the trailing twelve months is 35.00% percent. Hostess Brands Inc.’s EBITDA margin for the year ended June 29 was 20.88%, whereas its operating margin stood at 16.40% for the same period. Based on annual data, it had gross profit of $465.68 million and revenue of $1.36 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 4.80%. There was a 6.20% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 9.40%.
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 $351.99 million, while revenues rose by 3.27% to $345.4 million. It was predicted that Hostess Brands Inc.’s quarterly earnings would be $0.28, but it ended up being $0.26, beating the consensus by 7.70%. EBITDA was $76.71 million for the quarter. At the end of Hostess Brands Inc.’s most recent quarter ended June 29, its liabilities totaled 1.67 billion, while its total debt was $994.59 million. Equity owned by shareholders amounts to $132.86 million.
Technical Picture
Here’s a quick look at Hostess Brands Inc.’s (TWNK) price momentum from a technical perspective. As of 29 August, the RSI 9-day stood at 82.24%, suggesting the stock is Overbought, with a 98.58% historical volatility rate.
The stochastic %K and %D were 79.51% and 59.36% respectively, while the average true range (ATR) was 1.11. Based on the 14-day stochastic reading of 83.21%, the RSI (14) reading is 75.44%. On the 9-day MACD Oscillator, the stock is at 3.34, and the 14-day reading is at 3.63.
Analyst Ratings
In a note to investors, JP Morgan maintained its an Overweight rating on Hostess Brands Inc. (NASDAQ: TWNK). However, the firm raised their price target to $28, indicating a possible increase of 4.52% in the stock price. 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 7 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 $24.00 and $32.00, with a median target price of $30.00. In analyzing these forecasts, the average price target given by analysts for Hostess Brands Inc. (TWNK) is $28.78.
