Stock Market Today, Sept. 3: Campbell's Stock Slumps on Weaker Profit and Sales Miss
The Campbell's Company (NASDAQ:CPB), a branded packaged foods provider, closed at $22.13, down 6.96%. Thursday's sell-off followed weaker fiscal fourth-quarter profitability, a sales miss, and a dividend reduction.Trading volume reached 37.4 million shares, coming in about 343% a
Campbell's stock fell sharply on Thursday, September 3, 2021, as the company reported weaker fourth-quarter profitability and sales, leading to a dividend reduction. The stock closed at $22.13, down 6.96%, after trading volume surged to 37.4 million shares, about 343% higher than its three-month average of 8.4 million shares.
The S&P 500 index rose 1.07% to 7,748, while the Nasdaq Composite index gained 1.40% to 26,584. Other packaged-food companies, including Kraft Heinz and General Mills, also saw their stocks decline, with Kraft Heinz closing at $25.42, down 3.20%, and General Mills at $39.26, down 3.25%.
Income investors who owned Campbell's stock were disappointed by the company's announcement of a 36% dividend cut as part of a plan to strengthen its balance sheet amidst inflationary pressures and declining sales. Additionally, Campbell's has announced a new $500 million cost-savings plan through 2030.
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