Moody’s Shatters Dean Foods (NYSE:DF) Rating to Junk Territory

Moody’s Investors Service shattered its rating on Dean Foods Company (NYSE:DF) one notch more into junk territory, a action that shows that company’s business and financial position following the planned spinoff of its remaining interest in The WhiteWave Foods Co (NYSE:WWAV) to shareholders and the most recent sale of its Morningstar dairy unit.

The food and beverage company’s rating was shattered by Moody to B1, four notches into junk area, from Ba3. The forecast is stable.

The rating company noted the Dallas, Texas based Dean Foods continues to get advantage from its scale and national leadership mark in the milk category but it is a smaller and less diversified corporation with less expansion potential than before following the IPO of its WhiteWave business and the sale of Morningstar.

Shifting reader’s focus to broader market, let us consider market performance of other stocks that significantly affect same sector. Lifeway Foods, Inc. (NASDAQ:LWAY) fell -1.50% to settle at $8.55, Boulder Brands Inc (NASDAQ:BDBD) moved down -0.81% to end at $13.54 while The J.M. Smucker Company (NYSE:SJM) jumped +1.14% to finish at $90.20 on Friday.

Dean Foods Company (NYSE:DF) last session’s volume of 3.17 million shares was higher than its average volume of 2.60 million shares. The stock after opening at $17.26 hit high price of $17.76 and then closed at $17.56 by scoring +2.33%.

DF generated revenue of $12.78 billion in the previous twelve months and earned $123.07 million. The Company showed a positive 0.96% in the net profit margin as well as in its operating margin which remained at 3.38%. Company’s annual sales growth for the past five years was 5.27%.

The DF’s past twelve months’ price to sales ratio was 0.25 and price to cash ratio remained 46.61. As far as the returns are concerned, DF’s return on asset was recorded as 2.12% and return on investment increased 2.87%.

The stock showed weekly upbeat performance of 8.93% which was maintained for the month at 2.33%. Likewise the positive performance for the quarter was recorded as 9.54% and for the year was 61.10% while the YTD performance remained at 6.36%.

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