Mondelez and Campbell Soup are currently in a deadlock over the sale of the soup company’s Arnott’s cookie brands, one of Mondelez’s international businesses.
Recently, the Oreo's owner had submitted a final bid for Campbell’s international businesses, including Arnott’s. But the bid was modestly below Campbell’s price expectation of $3 billion, resulting in an impasse.
Arnott’s has the interest of some other buyers like KKR, a consortium backed by private equity firm. It is undisclosed what price the private equity firm has offered to buy Arnott, but it is known that they pay less for acquisitions than corporate buyers.
The impasse has put Campbell in an awkward situation, as it may either have to sell Arnott’s below its desired price or abandon the sales process altogether. Last year,Campbell had already put the unit up for sale to help pay down its debt following its $6.2-billion purchase of pretzel and chip company Snyder’s-Lance.
The deadlock also beckons the question of whether the two companies are better off separate than together.
The impasse also poses bigger challenges for the food industry as a number of big brands like Kraft Heinz (KHC), Kellogg (K) and General Mills (GIS) are now focussing on smaller investments on nimbler brands than pay big premiums. Mendelez recently bought premium cookie brand Tate’s Bake Shop for $500 million. Frito-Lay-owner PepsiCo likewise has made small add-ons, recently buying apple chips maker Bare Foods for less than $200 million.
MDLZ moved below its 50-day moving average on May 03, 2024 date and that indicates a change from an upward trend to a downward trend. In of 49 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are .
The 10-day RSI Indicator for MDLZ moved out of overbought territory on May 01, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 49 similar instances where the indicator moved out of overbought territory. In of the 49 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 57 cases where MDLZ's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The 50-day moving average for MDLZ moved below the 200-day moving average on May 03, 2024. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MDLZ declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
MDLZ broke above its upper Bollinger Band on April 22, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for MDLZ entered a downward trend on April 24, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Momentum Indicator moved above the 0 level on April 19, 2024. You may want to consider a long position or call options on MDLZ as a result. In of 87 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for MDLZ just turned positive on April 19, 2024. Looking at past instances where MDLZ's MACD turned positive, the stock continued to rise in of 45 cases over the following month. The odds of a continued upward trend are .
The 10-day moving average for MDLZ crossed bullishly above the 50-day moving average on May 01, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 20 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where MDLZ advanced for three days, in of 338 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 79, placing this stock better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.315) is normal, around the industry mean (8.292). P/E Ratio (19.268) is within average values for comparable stocks, (26.814). Projected Growth (PEG Ratio) (2.392) is also within normal values, averaging (2.471). Dividend Yield (0.024) settles around the average of (0.043) among similar stocks. P/S Ratio (2.653) is also within normal values, averaging (62.729).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. MDLZ’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufacturer of packaged food products
Industry FoodSpecialtyCandy