$UTZ – The blue chip that sells chips
Brief Company Overview
(UTZ:NYSE) Utz Brands Inc. is a processed food manufacturing company. They manufacture diverse portfolio of salty snacks under various brands (Utz, Zapp’s, Golden Flake, Good Health, Boulder Canyon, Hawaiian Brand, TORTIYAHS! and On the Border.).
The Company is based in Hanover, Pennsylvania, operates 14 facilities located in Pennsylvania, Alabama, Arizona, Illinois, Indiana, Louisiana, Washington, and Massachusetts.
UTZ became public via SPAC during the Pandemic (August 27th 2020).
- Website: https://www.utzsnacks.com/
- Investor Relations: https://investors.utzsnacks.com/investors/default.aspx
- Analysts: 8 (https://investors.utzsnacks.com/stock-info/Analyst-Coverage/default.aspx)
- UTZ has a strong Acquisition Strategy that focuses on the company’s future growth and is adding more brands under their portfolio.
- Recently acquired Festida Foods (largest manufacture of tortilla chips for the ON THE BORDER tortilla chip brand) [Acquisition expected to close on Q2 2021]
- Acquired Vitner in February 2021 (Chicago’s Snack since 1926)
- Using free cash and entering new loans to fund their Acquisition Strategy.
- Strived during the pandemic. (Self-explanatory)
- Stock pays dividends.
- Net Sales Constantly Growing.
- UTZ is expanding their market share across the US. Expansion and Emerging are two key targets. Core is their dominant market.
- Core (9.3%): WA, LA, AL, VA, WV, PA, NY
- Expansion (4.5%): CO, AR, MS, TN, GA, SC, NC, OH, IL, VT
- Emerging (2.5%): The rest of the US
Expansion & Emerging Geographic by brands
Over a 2-year period, the key sectors to look at are the Expansion and Emerging sectors. The chart below shows that these two sectors show a good increase.
In short, this is a good long term growth stock. The main factor that made me buy this is their acquisition strategy. A company that keeps growing their market share and brands is very good for the company in the long run. However, I expect in the short-term to take a hit. Revenue wise, more brands, more variety and more sales.
References: https://s25.q4cdn.com/130011723/files/doc_financials/2021/q1/Utz-Brands-Inc.-Q1-2021-Earnings-Presentation_FINAL.pdf (Q1 Financial Results)
https://finance.yahoo.com/news/utz-brands-inc-declares-quarterly-201500772.html (News: UTZ declares Quarterly Dividend)
By The Numbers (Financials)
Stock Price (Daily Chart)
Currently UTZ is riding along support. The stock recently dipped in May along with the rest of the market on the red week we had a few weeks ago. So far it’s been trading between $23-$25.
- Short Float: 55.30M (7.46% Shorted)
- 52W High: $30.09 (-22.04%)
- 52W Low: $12.76 (+83.82%)
The above references an opinion with supporting documentation and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.’ This assumes you are not selling investments or investment management services.
(TL;DR I am not a financial advisor, I own stock in this so my opinion may be biased. I am not responsible if you blow up your port, if you do end up blowing up your port, post it on this subreddit.)
Positions: 260 Shares @ average of $23.00
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June 11, 2021 at 11:07AM