Markets Right Now: Grocer stocks plunge on Whole Foods deal

In India, the grocery market is estimated to be at $400 billion, and organised retail, according to a report by Technopak contributes to $12 billion and e-grocers are said to hold four percent of that share.

Whole Foods is known for its pricey kale and asparagus water, but with Amazon AMZN, +2.44% as its new parent company that may change. The firm has a 50-day moving average of $35.95 and a 200-day moving average of $32.29.

Whole Foods Market will file with the SEC and mail or otherwise provide to its shareholders a proxy statement regarding the proposed transaction.

It also is an interesting time, because as recently as last month, Whole Foods had disclosed an overhaul of its board, where it had replaced five directors, got in a new CFO and a chairwoman. The company had revenue of $3.74 million during the quarter, compared to analyst estimates of $3.73 billion. During the same quarter a year ago, the firm earned $0.44 EPS. Whole Foods Market's quarterly revenue was down 99.9% compared to the same quarter past year.

Whole Foods, often derided as "Whole Paycheck" for its high prices, could see its reputation change if Amazon, a master at undercutting its brick-and-mortar rivals, passes any savings from automation to customers. The ex-dividend date of this dividend is Wednesday, June 28th. This represents a $0.72 annualized dividend and a dividend yield of 1.69%. Cadence Capital Management LLC purchased a new position in shares of Whole Foods Market during the fourth quarter worth approximately $203,000.

Energy sector shares helped buoy the S&P and Dow, while a 1.4 percent drop in Apple weighed on the Nasdaq. The shares were sold at an average price of $36.34, for a total value of $52,002.54. Whole Foods Market's dividend payout ratio is presently 44.44%. Whole Foods will keep operating stores under its name.

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Shares of Whole Foods Market, Inc.

Whole Foods Market (NASDAQ:WFM) last posted its quarterly earnings data on Wednesday, May 10th. Finally, Kornitzer Capital Management Inc.

Whole Foods also stands to benefit greatly from the deal. "With that said, while it is understandable that shares of Kroger & Co., Sprouts Farmers Markets and SuperValue (SVU) are getting sold down, there would seem to be some unwarranted shedding of stocks that have uncorrelated business models, such as Costco Wholesale, where the goods offered have little in common with those inventoried by Whole Foods". It was widely reported that Jana was pressing Whole Foods to consider a sale. After the deal was announced, it raised its target price for Whole Foods to $45 from $40. They issued a "buy" rating and a $42.00 price target on the stock. Whole Foods Market had a net margin of 2.54% and a return on equity of 13.72%.

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Whole Foods Market, Inc is engaged in the business of natural and organic foods supermarket. There are a couple of stores which have an worldwide presence in the United Kingdom and Canada.

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