The rollout of the appliance this holiday season remains one of the company’s biggest risks, along with declining sales of brewing machines and profitability of its coffee pods, Goldman noted. As per the latest information, Goldman Sachs Lowers the price target to $66.00 per share from a prior target of $120.00.
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Keurig Green Mountain Inc (NASDAQ:GMCR) expects sales decline of low to mid-range for fiscal 2015.
Keurig Green Mountain, Inc.is a specialty coffee and coffeemaker businesses in the United States and Canada. In the meantime, pressure is on the company to successfully debut a new soda-making machine called Kold, which Keurig Green Mountain is slated to roll out later this year. Also, recently introduced “non licensed” 1.0 technology brewers have not gained much traction (as implied by their less than 1% share) pointing to the strength of the Keurig brand. The higher and the lower price estimates are $ 168 and $70 respectively.
Keurig Green Mountain shares plunged Thursday the most in three years after cutting sales and profit forecasts, hurt by sluggish demand for its K-Cups and the slow rollout of a new cold-drink machine.
Smith Thomas W had the biggest stake with ownership of 162,375 shares as of Q1 2015 for 12.63% of the US long equity exposure. He points out, however, that the company’s FY16 guidance is “not fully conservative” and that questions remain if brewer volumes can grow in Q1. The stock was purchased at an average cost of $88.76 per share, for a total transaction of $221,900.00. The Insider information was divulged by the Securities and Exchange Commission in a Form 4 filing. Option exercises are not covered. The stock has a market capitalization of $8.39 billion and a PE ratio of 15.16.
Analysts were expecting adjusted earnings of $0.79 per share and revenue of $1.04 billion, according to Capital IQ data. The 52-week low of the share price is at $68.72.
Keurig Green Mountain Inc. expects to reduce its workforce by 5 percent after sales of its brewers and coffee pods declined, CNBC reported.
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Several other analysts also recently commented on the company. (GMCR): On Tuesday heightened volatility was witnessed in Keurig Green Mountain, Inc. In addition, the Company produces and sells other specialty beverages in portion packs including hot apple cider, hot and iced teas, iced coffees, iced fruit brews, hot cocoa and other dairy-based beverages. The Company operates in two segments: Domestic section and segment that is Canadian.
