Jana has now become the second-largest shareholder in the Austin-based organic and natural food retailer. (NASDAQ:WFM) has a market capitalization of $10.98B and most recently 318.56M outstanding shares have been calculated. However a year ago during same quarter Whole Foods Market, Inc.
Investors are betting that Jana can either fix Whole Foods or sell it for a good price.
The analyst also suggested that while Whole Foods can't just slash its prices with the hope that related margin losses will be offset by higher volumes, improved analytics could help identify products that drive the greatest elasticity with shoppers. The firm had revenue of $4.90 billion for the quarter, compared to the consensus estimate of $4.99 billion.
In other Whole Foods Market news, insider A C. Gallo sold 5,957 shares of the business's stock in a transaction dated Thursday, March 2nd.
Stock is now moving with a positive distance from the 200 day simple moving average of approximately 13.63%, and has a solid year to date (YTD) performance of 12.11% which means the stock is constantly adding to its value from the previous fiscal year end price.
"Bittman can provide tremendous leadership in understanding how to appeal to Whole Foods' core customer", said Asit Sharma, an analyst at Motley Fool. Russell Investments Group Ltd. purchased a new stake in Whole Foods Market during the fourth quarter worth about $48,352,000. Whole Foods' management and board of directors should expect the firm to demand discussions about the company's future, addressing issues such as the company's "chronic underperformance for shareholders", optimizing Whole Foods' real estate strategy, and finding new ways to market the brand.
It may be hard for Jana to improve the performance of Whole Foods in the short term, said Brian Yarbrough, an analyst at Edward Jones. Whole Foods Market's dividend payout ratio (DPR) is presently 40.29%. Morgan Stanley increased its stake in Whole Foods Market by 85.8% in the third quarter. Synovus Financial Corp now owns 6,895 shares of the company's stock valued at $195,000 after buying an additional 2,005 shares during the period. The Company operates approximately 456 stores in the United States, Canada and the United Kingdom.