$ACI Q2 Earnings Report
$ACI Short
Albertsons Companies, Inc. is an American grocery company with 2,253 stores. As a recession is approaching, people are much more careful about their spending habits. Big grocery food companies such as Walmart have already been affected badly due to inflation and a shortage of food supplies and I believe that Albertsons is going to have the same issue but on a bigger scale due to their size. Adding more, their executive vice president Evan Rainwater sold 25,242 shares of the firm's stock on June 21st. The stock was sold at an average price of $27.38, for a total value of $691,125.96. Also, CAO Robert Bruce Larson sold 15,746 shares of Albertsons Companies stock in a transaction on Wednesday, April 27th. The shares were sold at an average price of $31.50, for a total value of $495,999. Additionally, Kroger, another grocery company much bigger than Albertsons came out with a report a few weeks ago that also disappointed investors. With all these big companies with unlimited resources having missed the estimates, I find it unlikely that Albertsons is going to deliver good results. One thing that could make shorting this stock risky is the fact that there have already been numerous grocery chains coming out with disappointing reports so expectations for this company could be much less also considering how much smaller their business scale is. At the same time, they have a very good history of beating estimates which adds to the risk if they have promising forward-looking statements. The company also stated in their last report that they are only expecting a 2-3% growth for the year which points out that they already know their business will start struggling. The reason why I chose this stock was because of the fact that I’ve already seen many other companies in this type of field coming out with a report and I have a general understanding of the struggles this company has to go through and what they should be expecting in the future. At the same time, their price changes are very high or low so our portfolio is at a much smaller risk. How probable is it for them to find a way around the challenges their industry is going through? I would say the chances of it are low as the source of the problem is out of their control. The food shortage is caused by the war in Russia and Ukraine while high inflation prices are caused by the government. These are the biggest challenges they are currently facing and are completely unavoidable as also seen by their competitors. Companies like Walmart or Kroger have many more resources and cash in hand in order to solve this problem however, it still wasn’t enough.
Top 10 Owners of Albertsons Companies Inc Stockholder Stake Shares owned Total value ($) Shares bought / sold Total change The Vanguard Group, Inc. 1.44% 7,324,797 195,718,576 +5,274,910 +257.33% Fidelity Management & Research Co... 1.11% 5,653,864 151,071,246 +4,621,431 +447.63% Massachusetts Financial Services ... 1.04% 5,263,993 140,653,893 +317,502 +6.42% BlackRock Fund Advisors 0.87% 4,432,907 118,447,275 +171,259 +4.02% Marshall Wace LLP 0.48% 2,412,887 64,472,341 +1,089,612 +82.34% SSgA Funds Management, Inc. 0.40% 2,050,690 54,794,437 -29,076 -1.40% Alyeska Investment Group LP 0.35% 1,799,125 48,072,620 +980,091 +119.66% Millennium Management LLC 0.34% 1,700,852 45,446,765 -688,361 -28.81% D. E. Shaw & Co. LP 0.32% 1,620,033 43,287,282 +965,849 +147.64% Renaissance Technologies LLC 0.30% 1,508,105 40,296,566 +188,100 +14.25% Ceo: Estimate: -6% Time: Before market open