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>>> Flowers Foods (FLO) Stock Tumbles on Compliance Review


Aug 10, 2016



https://www.thestreet.com/story/13671379/1/flowers-foods-flo-stock-tumbles-on-compliance-review.html?puc=yahoo&cm_ven=YAHOO




NEW YORK (TheStreet) -- Shares of Flowers Foods (FLO) were retreating 7.38% to $16.44 on heavy trading volume early Wednesday afternoon after the Department of Labor notified the company that it is scheduled for a compliance review under the Fair Labor Standards Act.

Flowers disclosed the review in an SEC filing today but didn't mention the issue at hand, the Wall Street Journal reports.

The company is currently being sued by a number of truck drivers alleging they were wrongly classified as independent contractors, causing them to miss overtime pay and other employee benefits, the Journal adds. The lawsuits claim that Flowers violated Fair Labor Standards acts with the alleged misclassifications.

Flowers Foods is a Thomasville, GA-based bakery that owns Wonder Bread, Nature's Own and Tastykake brands.

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About 3.97 million shares of Flowers Foods have been traded so far today vs. its average trading volume of roughly 1.88 million shares per day.

Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B-.

Flowers Foods' strengths such as its revenue growth, reasonable valuation levels, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and notable return on equity outweigh the fact that the company has had sub par growth in net income.

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