BOISE, Idaho - Albertsons (NYSE:ACI) Companies, Inc. (NYSE: ACI), a prominent U.S. food and drug retailer, has declared a quarterly cash dividend of $0.12 per share of common stock. This dividend is slated for payment on August 9, 2024, to shareholders who are on record by July 26, 2024.
As a major player in the retail space, Albertsons operates a vast network of 2,269 stores, which include 1,725 pharmacies and 402 fuel centers, among other facilities. The company's reach extends across 34 states and the District of Columbia, with a portfolio of over 20 retail brands such as Safeway and Vons.
In addition to its retail operations, Albertsons is known for its philanthropic efforts. In 2023, the company, together with the Albertsons Companies Foundation, contributed over $350 million in food and financial support. This includes more than $35 million dedicated to the Nourishing Neighbors Program, aimed at addressing food insecurity in communities affected by disasters.
The announcement of the dividend follows Albertsons' ongoing commitment to providing value to its stockholders and is a reflection of its financial performance and outlook.
While the company has made forward-looking statements regarding its expectations and projected financial performance, it also caresses that these statements involve risks and uncertainties. Shareholders and potential investors are advised that actual results could vary significantly from those projected due to various factors.
This dividend declaration is based on information provided by Albertsons in a press release statement. The company has advised that forward-looking statements should not be overly relied upon and that they undertake no obligation to update any statements post-release. Investors and stakeholders are encouraged to consult the company's filings with the U.S. Securities and Exchange Commission for a comprehensive understanding of the risks involved.
Albertsons' commitment to its shareholders and community initiatives continues to be a central aspect of its corporate identity as it navigates the dynamic retail landscape.
In other recent news, Albertsons Companies Inc. has been in the spotlight with several significant developments. Roth/MKM recently upgraded Albertsons stock from Neutral to Buy, setting a new price target at $24.00. This change comes in light of a new divestiture package, which includes 166 additional stores, expected to boost competition and increase the likelihood of a pending deal's approval.
On the other hand, RBC Capital adjusted its financial outlook for Albertsons, reducing the grocery chain's price target to $22 from $23 while maintaining an Outperform rating. The adjustment is based on a projected modest increase in same-store sales for 2024 and a revised 2024 adjusted EBITDA forecast for Albertsons to $4.0 billion.
Evercore ISI maintained its "In Line" rating and $22.00 price target for Albertsons, acknowledging the company's ongoing efforts to enhance customer retention strategies. The firm noted Albertsons' growth in its pharmacy sector and loyal customer base, with both segments increasing by 16% year-over-year.
In a major development, Albertsons and Kroger (NYSE:KR) Co. have agreed to sell an additional 166 stores to C&S Wholesale Grocers to secure regulatory approval for their $25 billion merger. This amended agreement aims to address antitrust concerns related to the deal. Despite these recent developments, the outcome of the merger remains uncertain.
InvestingPro Insights
Albertsons Companies, Inc. (NYSE: ACI) has been maintaining a solid position in the market as evidenced by the recent InvestingPro data. With a market capitalization of $11.2 billion and a price-to-earnings (P/E) ratio of 8.61, the company is trading at a low earnings multiple. This suggests that the stock may be undervalued relative to its earnings potential, which can be attractive for value investors. Moreover, the company's revenue for the last twelve months as of Q4 2024 stands at $79.24 billion, reflecting a modest year-over-year growth of 2.05%.
InvestingPro Tips highlight Albertsons as a prominent player in the Consumer Staples Distribution & Retail industry, indicating the company's significance in its sector. Albertsons' stock is noted to generally trade with low price volatility, which could appeal to investors seeking stable investments in the current economic climate. It is also worth noting that analysts predict the company will be profitable this year, which aligns with the company's positive performance over the last twelve months.
For investors looking to delve deeper into the financial health and prospects of Albertsons, InvestingPro offers additional insights. Subscribers can access a total of 10 InvestingPro Tips for Albertsons, which could provide a more comprehensive understanding of the company's position and potential investment opportunities. Be sure to use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking the full suite of benefits that InvestingPro has to offer.
Albertsons' dedication to shareholder value and community support, as demonstrated by its consistent dividend payments and philanthropic efforts, is a testament to its strong corporate ethos. As the company continues to navigate the retail landscape, these InvestingPro insights can help investors make informed decisions.
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