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B&G Foods (BGS) Plunges 8.90% on Weak Earnings

Mover TrackerThursday, May 8, 2025 7:51 pm ET

1min read

B&G Foods (BGS) experienced a significant decline in its stock price, falling 8.90% intraday to its lowest level since March 2009. The stock has been on a downward spiral, dropping 5.08% today and 34.98% over the past six days.

The strategy of buying BGS shares after they reached a recent low and holding for 1 week yielded moderate returns over the past 5 years, with a 4.50% annualized return and a 22.4% peak-to-trough gain. However, it underperformed the market by 1.5 percentage points and had a maximum drawdown of -7.2%, indicating some volatility and limited backtested gains.

B&G Foods' recent struggles can be attributed to its disappointing fiscal first-quarter results for 2025. The company reported a 10.5% decrease in net sales, which fell to $425.4 million. This decline was primarily due to weak volumes and pricing issues, which have raised concerns among investors about the company's ability to maintain its market position.

In response to these challenges, B&G Foods' management revised its 2025 outlook and cut earnings guidance. This move has further dampened investor sentiment, as it indicates that the company is facing significant headwinds in the current market environment. Financial institutions such as Barclays and Piper Sandler have also reduced their price targets for BGS, reflecting the challenging market conditions faced by the company.

The combination of weak financial performance and reduced earnings guidance has led to a significant sell-off in B&G Foods' stock. Investors are increasingly concerned about the company's ability to navigate the current market challenges and return to profitability. As a result, the stock has experienced a sharp decline in recent days, with no immediate signs of recovery.

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