Kestrel Investment Management Corp Grows Stake in The Simply Good Foods Company $SMPL

Key Points

• Kestrel Investment Management increased its stake in Simply Good Foods by 90.3% in the first quarter, buying 122,475 additional shares and bringing its total holdings to 258,050 shares.
• Several other institutional investors also added to their positions, and 88.45% of SMPL shares are owned by hedge funds and other institutions.
• Simply Good Foods posted quarterly earnings that beat expectations, reporting $0.42 EPS versus $0.35 expected and revenue of $356.98 million, while analysts currently rate the stock a Hold with an average price target of $15.20.

Kestrel Investment Management Corp boosted its holdings in shares of The Simply Good Foods Company (NASDAQ:SMPL - Free Report) by 90.3% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 258,050 shares of the financial services provider's stock after purchasing an additional 122,475 shares during the quarter. Simply Good Foods comprises 2.2% of Kestrel Investment Management Corp's portfolio, making the stock its 21st biggest holding. Kestrel Investment Management Corp owned 0.29% of Simply Good Foods worth $3,703,000 as of its most recent SEC filing.

Other large investors also recently added to or reduced their stakes in the company. Royal Bank of Canada grew its holdings in Simply Good Foods by 9.0% during the 1st quarter. Royal Bank of Canada now owns 71,023 shares of the financial services provider's stock valued at $2,448,000 after buying an additional 5,893 shares in the last quarter. AQR Capital Management LLC boosted its position in shares of Simply Good Foods by 3.4% during the first quarter. AQR Capital Management LLC now owns 19,018 shares of the financial services provider's stock worth $656,000 after acquiring an additional 617 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in Simply Good Foods by 5.5% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 54,819 shares of the financial services provider's stock valued at $1,891,000 after acquiring an additional 2,850 shares in the last quarter. Caxton Associates LLP purchased a new position in Simply Good Foods during the first quarter valued at $264,000. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in Simply Good Foods by 10.7% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 224,229 shares of the financial services provider's stock valued at $7,734,000 after acquiring an additional 21,696 shares during the last quarter. 88.45% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at Simply Good Foods

In related news, Director James M. Kilts purchased 80,000 shares of the stock in a transaction that occurred on Thursday, April 23rd. The stock was bought at an average cost of $12.39 per share, for a total transaction of $991,200.00. Following the completion of the transaction, the director directly owned 172,854 shares in the company, valued at $2,141,661.06. This represents a 86.16% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, Director Clayton C. Daley, Jr. acquired 10,000 shares of the company's stock in a transaction on Thursday, May 14th. The shares were purchased at an average cost of $11.78 per share, with a total value of $117,800.00. Following the completion of the purchase, the director directly owned 111,743 shares of the company's stock, valued at $1,316,332.54. This trade represents a 9.83% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 8.76% of the stock is owned by company insiders.

Simply Good Foods Stock Up 1.6%

Shares of NASDAQ SMPL opened at $12.07 on Friday. The company has a current ratio of 4.80, a quick ratio of 3.10 and a debt-to-equity ratio of 0.28. The Simply Good Foods Company has a 12-month low of $10.21 and a 12-month high of $33.64. The firm's 50-day moving average price is $12.25 and its 200-day moving average price is $14.80. The stock has a market capitalization of $1.07 billion, a price-to-earnings ratio of -5.56 and a beta of 0.13.

Simply Good Foods (NASDAQ:SMPL - Get Free Report) last released its quarterly earnings results on Thursday, July 9th. The financial services provider reported $0.42 EPS for the quarter, topping the consensus estimate of $0.35 by $0.07. Simply Good Foods had a positive return on equity of 9.34% and a negative net margin of 14.28%.The company had revenue of $356.98 million during the quarter, compared to analyst estimates of $332.99 million. During the same quarter last year, the business posted $0.51 earnings per share. The firm's revenue was down 6.3% on a year-over-year basis. On average, equities research analysts anticipate that The Simply Good Foods Company will post 1.54 EPS for the current fiscal year.

Wall Street Analyst Weigh In

Several analysts have commented on the stock. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and issued a $14.00 price target on shares of Simply Good Foods in a research note on Friday, July 10th. BTIG Research began coverage on Simply Good Foods in a research report on Monday, April 13th. They set a "neutral" rating for the company. Stifel Nicolaus reduced their target price on Simply Good Foods from $32.00 to $20.00 and set a "buy" rating on the stock in a report on Friday, April 10th. Stephens reiterated an "equal weight" rating and issued a $14.00 target price (down from $24.00) on shares of Simply Good Foods in a research report on Friday, April 10th. Finally, Mizuho set a $19.00 price target on Simply Good Foods in a research note on Monday, May 4th. Three investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $15.20.

About Simply Good Foods

Simply Good Foods Co NASDAQ: SMPL is a North American consumer packaged foods company specializing in better-for-you nutrition products. The company’s portfolio centers on two well-established brands, Atkins and Quest, which offer a range of low-carbohydrate, high-protein bars, powders, shakes, and snacks. Simply Good Foods aims to support consumers’ health and wellness goals by delivering convenient, nutrient-dense options without added sugars or artificial sweeteners.

Under the Atkins brand, the company produces meal replacements, snack bars, and ready-to-drink shakes designed for low-carb dieters.

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