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TheStreet Open House

Why Annie's (BNNY) Stock Is Lower Today

Stock quotes in this article: BNNY

NEW YORK (TheStreet) -- Shares of Annie's Inc  (BNNY) are down -5.95% to $28.28 on heavy trading volume this afternoon.

Shareholder rights law firm Johnson & Weaver announced it's investigating whether certain officers and directors of Annie's violated state or federal securities laws.

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Yesterday, Annie's disclosed in an SEC filing that its public accounting firm, PricewaterhouseCoopers LLP, was resigning. This news was disclosed by Annie's several days after the company made known that it had identified a material weakness in its internal control over financial reporting.

Several of Annie's key executives and board members have sold most of their personally held stock, valued at millions, above the current market price, according to the law firm, which cites separate filings with the SEC.

TheStreet Ratings team rates ANNIE'S INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:

"We rate ANNIE'S INC (BNNY) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and premium valuation."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • BNNY has underperformed the S&P 500 Index, declining 10.64% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
  • 35.36% is the gross profit margin for ANNIE'S INC which we consider to be strong. Regardless of BNNY's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BNNY's net profit margin of 8.56% compares favorably to the industry average.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Food Products industry and the overall market on the basis of return on equity, ANNIE'S INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • The net income growth from the same quarter one year ago has exceeded that of the Food Products industry average, but is less than that of the S&P 500. The net income increased by 21.1% when compared to the same quarter one year prior, going from $4.23 million to $5.13 million.
  • You can view the full analysis from the report here: BNNY Ratings Report

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