SunOpta (NASDAQ:STKL) Trading 13% Higher on Better-Than-Expected Earnings

SunOpta Inc. (NASDAQ:STKL) (TSE:SOY)’s stock price was up 13% during mid-day trading on Thursday after the company announced better than expected quarterly earnings. The company traded as high as $6.18 and last traded at $5.98. Approximately 46,269 shares traded hands during mid-day trading, a decline of 94% from the average daily volume of 779,416 shares. The stock had previously closed at $5.29.

The company reported $0.02 earnings per share for the quarter, beating the consensus estimate of $0.01 by $0.01. SunOpta had a positive return on equity of 2.50% and a negative net margin of 24.00%. The business had revenue of $171.00 million for the quarter, compared to analysts’ expectations of $159.95 million. During the same quarter in the previous year, the business posted ($0.03) EPS. SunOpta’s revenue for the quarter was down 17.7% on a year-over-year basis.

Wall Street Analyst Weigh In

Separately, StockNews.com raised SunOpta from a “sell” rating to a “hold” rating in a research note on Tuesday, July 30th. One equities research analyst has rated the stock with a hold rating and four have given a buy rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $9.25.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Hodges Capital Management Inc. increased its holdings in shares of SunOpta by 11.2% in the second quarter. Hodges Capital Management Inc. now owns 3,198,624 shares of the company’s stock valued at $17,273,000 after purchasing an additional 323,397 shares during the last quarter. Granahan Investment Management LLC boosted its holdings in shares of SunOpta by 1,291.2% during the 4th quarter. Granahan Investment Management LLC now owns 2,393,790 shares of the company’s stock worth $13,094,000 after buying an additional 2,221,718 shares during the period. Thornburg Investment Management Inc. grew its stake in SunOpta by 35.5% in the 4th quarter. Thornburg Investment Management Inc. now owns 1,999,324 shares of the company’s stock valued at $10,933,000 after buying an additional 523,830 shares during the last quarter. Blair William & Co. IL grew its stake in SunOpta by 77.0% in the 1st quarter. Blair William & Co. IL now owns 1,971,345 shares of the company’s stock valued at $13,543,000 after buying an additional 857,603 shares during the last quarter. Finally, CastleKnight Management LP bought a new position in SunOpta in the 4th quarter valued at about $8,743,000. Institutional investors own 85.39% of the company’s stock.

SunOpta Price Performance

The stock has a market capitalization of $724.76 million, a price-to-earnings ratio of -3.99 and a beta of 1.85. The company’s 50-day simple moving average is $5.44 and its 200-day simple moving average is $5.93. The company has a debt-to-equity ratio of 1.39, a current ratio of 1.22 and a quick ratio of 0.63.

About SunOpta

SunOpta Inc engages in manufacture and sale of plant-based and fruit-based food and beverage products in the United States, Canada, and internationally. The company provides plant-based beverages utilizing oat, almond, soy, coconut, rice, hemp, and other bases under the Dream and West Life brands; oat-based creamers under the SOWN brand; ready-to-drink protein shakes; and nut, grain, seed, and legume based beverages; packaged teas and concentrates; and meat and vegetable broths and stocks.