Zacks Investment Research Downgrades Reed’s (NYSEAMERICAN:REED) to Sell

Reed’s (NYSEAMERICAN:REED) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Tuesday, Zacks.com reports.

According to Zacks, “Reed’s, Inc. develops, manufactures, and markets top selling sodas in natural foods markets and will is currently expanding its innovative, all natural, non-alcoholic beverages, candies and ice creams into the mainstream markets. Its non-alcoholic Ginger Brews are unique in the beverage industry being brewed from fresh ginger, spices and fruits. Award-winning gourmet product lines include: Reed’s Ginger Brews, Reed’s Ginger Juice Brews, Reed’s Ginger Candies and Reed’s Ginger Ice Creams. Additionally, the Company has acquired Virgil’s Root Beer and China Cola product lines. Reed’s products are sold through specialty gourmet and natural food stores, supermarket chains, retail stores and restaurants nationwide and in Canada. “

Other equities analysts have also recently issued research reports about the company. Maxim Group reiterated a “buy” rating and issued a $2.00 price objective on shares of Reed’s in a research note on Friday, October 25th. Lake Street Capital reiterated a “buy” rating and issued a $2.50 price objective (down previously from $6.00) on shares of Reed’s in a research note on Thursday, November 14th. One analyst has rated the stock with a sell rating and four have assigned a buy rating to the company. The company has an average rating of “Buy” and a consensus price target of $3.69.

Shares of REED opened at $0.75 on Tuesday. Reed’s has a 1 year low of $0.53 and a 1 year high of $4.05.

Reed’s (NYSEAMERICAN:REED) last announced its quarterly earnings data on Wednesday, November 13th. The consumer goods maker reported ($0.14) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.11) by ($0.03). The firm had revenue of $8.74 million during the quarter, compared to analyst estimates of $8.55 million.

In other Reed’s news, CEO John Bello bought 1,666,666 shares of the firm’s stock in a transaction that occurred on Friday, October 25th. The stock was purchased at an average price of $0.60 per share, for a total transaction of $999,999.60. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Norman E. Jr. Snyder bought 6,000 shares of the firm’s stock in a transaction that occurred on Tuesday, October 22nd. The shares were acquired at an average price of $28.16 per share, with a total value of $168,960.00. In the last 90 days, insiders have purchased 1,983,498 shares of company stock valued at $1,358,534.

A number of hedge funds have recently bought and sold shares of REED. Handelsinvest Investeringsforvaltning lifted its stake in Reed’s by 300.0% during the second quarter. Handelsinvest Investeringsforvaltning now owns 20,000 shares of the consumer goods maker’s stock worth $76,000 after purchasing an additional 15,000 shares during the last quarter. Wells Fargo & Company MN increased its position in Reed’s by 2,677,900.0% during the second quarter. Wells Fargo & Company MN now owns 26,780 shares of the consumer goods maker’s stock worth $101,000 after buying an additional 26,779 shares during the period. River & Mercantile Asset Management LLP acquired a new position in Reed’s during the second quarter worth approximately $1,182,000. BlackRock Inc. increased its position in Reed’s by 696.3% during the second quarter. BlackRock Inc. now owns 330,893 shares of the consumer goods maker’s stock worth $1,251,000 after buying an additional 289,337 shares during the period. Finally, Handelsbanken Fonder AB increased its position in Reed’s by 1,900.0% during the second quarter. Handelsbanken Fonder AB now owns 600,000 shares of the consumer goods maker’s stock worth $2,268,000 after buying an additional 570,000 shares during the period.

About Reed’s

Reed's, Inc develops, manufactures, markets, and sells natural hand-crafted beverages and candies in the United States, Canada, Asia, Europe, Australia, and South America. Its products include Reed's ginger beers; Virgil's root beer and cream sodas; Flying Cauldron Butterscotch Beer; and Sonoma Sparkler branded sparkling juices.

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