Fresh Del Monte Produce (NYSE:FDP) Cut to Buy at Wall Street Zen

Key Points

• Fresh Del Monte Produce was downgraded from a "strong-buy" to a "buy" rating by Wall Street Zen, indicating a shift in analyst outlook.
• The company's quarterly earnings report showed better-than-expected results with earnings per share of $1.23, exceeding the consensus estimate by $0.28.
• Recent insider sales included significant stock transactions, with insiders selling over 137,000 shares worth approximately $5 million in the last quarter.

Wall Street Zen cut shares of Fresh Del Monte Produce (NYSE:FDP - Free Report) from a strong-buy rating to a buy rating in a research report released on Saturday.

Fresh Del Monte Produce Stock Up 0.5%

Shares of NYSE:FDP traded up $0.19 on Friday, reaching $35.61. The company had a trading volume of 264,996 shares, compared to its average volume of 369,863. Fresh Del Monte Produce has a 52-week low of $26.50 and a 52-week high of $40.75. The firm's 50 day simple moving average is $35.63 and its 200-day simple moving average is $33.43. The firm has a market capitalization of $1.71 billion, a PE ratio of 11.41 and a beta of 0.43. The company has a current ratio of 2.08, a quick ratio of 1.11 and a debt-to-equity ratio of 0.10.

Fresh Del Monte Produce (NYSE:FDP - Get Free Report) last announced its quarterly earnings results on Wednesday, July 30th. The company reported $1.23 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.95 by $0.28. Fresh Del Monte Produce had a return on equity of 6.84% and a net margin of 3.49%.The business had revenue of $1.18 billion for the quarter, compared to the consensus estimate of $1.16 billion. During the same period last year, the business posted $1.06 EPS. The business's revenue was up 3.8% compared to the same quarter last year.

Fresh Del Monte Produce Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, September 5th. Stockholders of record on Wednesday, August 13th were issued a $0.30 dividend. The ex-dividend date was Wednesday, August 13th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 3.4%. Fresh Del Monte Produce's dividend payout ratio (DPR) is currently 38.46%.

Insider Buying and Selling

In other news, CEO Ghazaleh Mohammad Abu sold 50,000 shares of the firm's stock in a transaction on Wednesday, August 6th. The stock was sold at an average price of $35.92, for a total value of $1,796,000.00. Following the completion of the sale, the chief executive officer owned 4,990,782 shares of the company's stock, valued at $179,268,889.44. This trade represents a 0.99% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, SVP Ziad Nabulsi sold 1,000 shares of the firm's stock in a transaction on Tuesday, August 5th. The stock was sold at an average price of $35.95, for a total value of $35,950.00. Following the completion of the sale, the senior vice president directly owned 10,498 shares of the company's stock, valued at $377,403.10. The trade was a 8.70% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 137,039 shares of company stock valued at $5,010,709. 31.60% of the stock is owned by insiders.

Institutional Trading of Fresh Del Monte Produce

A number of institutional investors have recently made changes to their positions in the business. Geneos Wealth Management Inc. boosted its position in shares of Fresh Del Monte Produce by 238.1% in the 2nd quarter. Geneos Wealth Management Inc. now owns 1,065 shares of the company's stock worth $35,000 after purchasing an additional 750 shares in the last quarter. Public Sector Pension Investment Board boosted its position in shares of Fresh Del Monte Produce by 2.8% in the 2nd quarter. Public Sector Pension Investment Board now owns 140,440 shares of the company's stock worth $4,553,000 after purchasing an additional 3,861 shares in the last quarter. Tower Research Capital LLC TRC boosted its position in shares of Fresh Del Monte Produce by 34.7% in the 2nd quarter. Tower Research Capital LLC TRC now owns 3,010 shares of the company's stock worth $98,000 after purchasing an additional 775 shares in the last quarter. Wasatch Advisors LP acquired a new stake in shares of Fresh Del Monte Produce in the 2nd quarter worth $44,011,000. Finally, Engineers Gate Manager LP lifted its position in Fresh Del Monte Produce by 30.1% during the 2nd quarter. Engineers Gate Manager LP now owns 19,716 shares of the company's stock worth $639,000 after acquiring an additional 4,563 shares during the period. Institutional investors and hedge funds own 64.83% of the company's stock.

About Fresh Del Monte Produce

Fresh Del Monte Produce Inc, through its subsidiaries, produces, markets, and distributes fresh and fresh-cut fruits and vegetables in North America, Central America, South America, Europe, the Middle East, Africa, Asia, and internationally. It operates through three segments: Fresh and Value-Added Products, Banana, and Other Products and Services.