UTZ - Utz Brands: Management Is Making Big Changes For The Sake Of Long-Term Prospects

2024-02-02 17:24:37 ET

Summary

• Utz Brands has seen its share price increase by 31.8% since June 2022, exceeding expectations.
• The company announced major changes, including selling off assets and reducing long-term debt, which could have a positive impact on operations.
• Utz Brands is working on a cost-cutting program that aims to reduce costs by $45 million and improve profitability. However, it is still too early to determine the success of these initiatives.

One thing that I have discovered to be true about the market is that, over time, it can be harsh to companies that are experiencing pain but gracious to those firms that are making an effort to turn themselves around. Sometimes, that can even result in the companies in question seeing their share prices trade at levels that you would not normally anticipate. A great example of this can be seen by looking at Utz Brands, Inc. ( UTZ ), a producer of chips and other snack items. In the past, I turned rather bearish on the business. In an article published in June 2022, I even went so far as to rate it a 'sell' because of its financial trajectory and how expensive the stock was. Since then, the enterprise has exceeded my expectations rather significantly. While the S&P 500 is up 26.8%, shares of Utz Brands have seen an upside of 31.8%....

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