Mama's Creations tops estimates with $52.8M quarter as new investor joins register

What's the deal? Expect Equity LLC has taken a new position in Mama's CreationsDealroom has a profile for this one. Try Dealroom →, buying 131,704 shares worth roughly $2,351,000 in the second quarter, according to HoldingsChannel.com. The prepared-foods maker beat Wall Street estimates in its latest quarter, reporting earnings of $0.05 per share against a $0.03 consensus.

What does the company do? Mama's Creations markets, manufactures, and distributes deli-style foods, including beef and turkey meatballs with sauce, meat loaf, sausage and peppers, and chicken parmesan. It trades on the Nasdaq under the ticker MAMA and carries a market capitalisation of $681.24 million.

By the numbers. Revenue reached $52.77 million for the quarter ended June 8, above the $51.63 million analysts expected. That marks a jump from $0.03 in earnings per share a year earlier, with a return on equity of 14.69% and a net margin of 3.21%.

Who else is buying? Several institutions have adjusted their holdings recently. American Century CompaniesDealroom has a profile for this one. Try Dealroom → grew its stake by 1.6% to 89,062 shares, while Rhumbline AdvisersDealroom has a profile for this one. Try Dealroom →, Invesco, AlliancebernsteinDealroom has a profile for this one. Try Dealroom →, and Price T Rowe AssociatesDealroom has a profile for this one. Try Dealroom → each added modestly. Institutional investors and hedge funds now own 45.18% of the company.

What could go wrong? Analysts are split on where the stock heads next. William Blair started coverage with an "outperform" rating in July, and DA Davidson reaffirmed a "buy" with a $25.00 target. But Weiss Ratings, Wall Street Zen, and Zacks Research all cut the stock to "hold" in recent weeks, leaving a consensus "Moderate Buy" and a $19.83 price target.

The signal: The stock opened at $16.64 on Wednesday, roughly midway between its 12-month range of $7.89 to $21.00. A fresh institutional buyer and an earnings beat point to continued interest in Mama's Creations, even as its 118.86 price-to-earnings ratio and mixed analyst views suggest debate over how much growth is already priced in.

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