On September 20, 2023, it was reported that DnB Asset Management AS had acquired a new position in Oatly Group AB (NASDAQ:OTLY) during the second quarter of the year. The purchase was revealed through a 13F filing with the U.S. Securities and Exchange Commission (SEC). This move signifies the firm’s confidence in the potential growth and success of Oatly Group.
Oatly Group AB is a prominent oatmilk company based in Sweden. The company specializes in producing plant-based dairy products derived from oats. Their product range includes Barista edition oatmilk, oatgurts, frozen desserts, ice-creams, yogurts, and various cooking products such as cooking cream, Crème Fraiche, whipping cream, vanilla custard, and spreads available in different flavors. Moreover, Oatly Group also offers ready-to-go drinks for consumers seeking convenient options.
The acquisition made by DnB Asset Management AS involved purchasing 146,495 shares of Oatly Group’s stock. The total value of this investment amounted to approximately $300,000. This substantial stake showcases the belief held by DnB Asset Management AS in the potential profitability and long-term prospects of Oatly Group.
Oat milk has gained significant popularity as a plant-based alternative to traditional dairy milk over recent years. It has attracted a growing consumer base due to its perceived health benefits and sustainability credentials compared to animal-derived products. As sustainability concerns continue to drive consumer choices and shape market trends, companies like Oatly Group are well-positioned to capitalize on this shift towards more environmentally-friendly options.
The entrance of DnB Asset Management AS into the fold of investors highlights their intent to allocate resources into sustainable ventures with promising growth potential like Oatly Group. By diversifying their portfolio through investments in innovative companies offering eco-friendly alternatives like oatmilk, DnB Asset Management AS aims to align their investment strategy with the evolving preferences of socially-conscious consumers.
As the demand for plant-based dairy alternatives continues to surge, Oatly Group’s dedication to quality and sustainability has positioned them as a leader in the industry. Their commitment to producing delicious and nutritious oat-based products has resonated with consumers worldwide. By expanding their presence in various product categories and continuously introducing new offerings, Oatly Group is well-equipped to maintain its trajectory of growth and success.
The acquisition made by DnB Asset Management AS serves as an endorsement of Oatly Group’s potential and strengthens its position within the market. This investment not only highlights the confidence held by DnB Asset Management AS in Oatly Group but also signifies the growing recognition of oat milk and plant-based dairy alternatives as lucrative investment opportunities.
In conclusion, DnB Asset Management AS acquiring a new position in Oatly Group AB demonstrates their confidence in the future prospects of this renowned oatmilk company. As sustainable choices gain prominence among consumers, Oatly Group’s commitment to providing high-quality plant-based dairy alternatives positions them favorably within the industry. With strong investor support from firms like DnB Asset Management AS, Oatly Group is poised for continued growth and success as they cater to the evolving preferences of health-conscious and environmentally-minded consumers.
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Mixed Sentiments Surround Oatly Group as Institutional Investors and Analysts Weigh In
Institutional investors show mixed sentiments towards Oatly Group, with some increasing their stakes while others reducing them. FMR LLC, for instance, boosted its position in the company by 22.9% during the second quarter of this year. They now own over 5.7 million shares of Oatly Group’s stock, valued at $19.8 million. Similarly, Goldman Sachs Group Inc. increased its stake in the company by a staggering 1,099.9% during the first quarter, owning approximately 3.4 million shares worth $17.1 million.
Contrastingly, Pictet Asset Management SA reduced its stake in Oatly Group by 23.2% during the same period, while Renaissance Technologies LLC purchased a new position worth around $4.2 million in the fourth quarter.
Meanwhile, Balyasny Asset Management L.P., a major institution investor in Oatly Group, experienced a significant increase in their stake by 567%. They now own over 1.9 million shares worth $4.8 million.
Overall, institutional investors hold approximately 21.36% of Oatly Group’s stock.
Several equities analysts have also been weighing in on Oatly Group lately. Royal Bank of Canada downgraded their rating from “outperform” to “sector perform” and decreased their target price from $7 to $1.80 back in July 2023.
Truist Financial followed suit and lowered their price target from $7 to $3 while maintaining a “buy” rating on the stock during that same month.
Barclays also decreased their price target from $3 to $2 and maintained an “overweight” rating.
JPMorgan Chase & Co., on the other hand, downgraded Oatry Group from an “overweight” rating to “neutral” earlier this year.
Piper Sandler reduced its price objective from $4 to $3 but retained an “overweight” rating for the company.
Bloomberg.com reports that the consensus rating for Oatly Group is currently “Hold,” with an average target price of $3.26.
Oatly Group’s stock opened at $0.99 on September 20, 2023. The company has a quick ratio of 0.77 and a current ratio of 0.93, indicating its ability to meet short-term obligations. With a debt-to-equity ratio of 0.37, the company’s financial leverage seems favorable. However, it should be noted that Oatly Group has reported negative earnings per share (EPS) recently.
In its most recent earnings report released on July 27th, Oatly Group recorded an EPS of ($0.14), falling short of the consensus estimate by ($0.02). The company also witnessed negative net margin figures reaching up to 51.37%. Despite this, Oatly Group generated revenue of $195.99 million for the quarter, slightly below analysts’ expectations.
Analysts project that Oatly Group AB will post an EPS of -0.48 for the current year.
These mixed sentiments from institutional investors and equity analysts reflect the uncertainties surrounding Oatly Group’s performance and potential amid a rapidly changing market landscape in recent times.
