Fresh Del Monte Produce (NYSE:FDP) Sets New 1-Year Low - Time to Sell?

Key Points

• Fresh Del Monte Produce shares fell to a new 52-week low on Tuesday, trading as low as $26.47 and ending down about 2% amid heavy volume.
• Analyst sentiment remains cautious: recent reports from Weiss Ratings and Wall Street Zen both downgraded the stock, leaving the consensus rating at Hold.
• The company recently beat earnings and revenue estimates for the quarter, but revenue still declined 4.9% year over year; it also pays a 4.5% dividend yield with a relatively high payout ratio of 82.76%.

Fresh Del Monte Produce, Inc. (NYSE:FDP - Get Free Report)'s stock price hit a new 52-week low during trading on Tuesday . The stock traded as low as $26.47 and last traded at $26.89, with a volume of 835268 shares. The stock had previously closed at $27.44.

Analyst Upgrades and Downgrades

FDP has been the topic of several research analyst reports. Weiss Ratings cut Fresh Del Monte Produce from a "hold (c+)" rating to a "hold (c)" rating in a research report on Wednesday, June 17th. Wall Street Zen lowered Fresh Del Monte Produce from a "buy" rating to a "hold" rating in a report on Saturday, May 9th. One equities research analyst has rated the stock with a Hold rating, Based on data from MarketBeat, the company has a consensus rating of "Hold".

Fresh Del Monte Produce Trading Down 2.0%

The firm has a market capitalization of $1.28 billion, a price-to-earnings ratio of 18.54 and a beta of 0.22. The company has a quick ratio of 1.10, a current ratio of 2.34 and a debt-to-equity ratio of 0.22. The firm's 50 day moving average is $34.78 and its 200 day moving average is $37.68.

Fresh Del Monte Produce (NYSE:FDP - Get Free Report) last posted its quarterly earnings results on Wednesday, May 6th. The company reported $0.63 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.62 by $0.01. Fresh Del Monte Produce had a net margin of 1.63% and a return on equity of 7.61%. The firm had revenue of $1.04 billion for the quarter, compared to analyst estimates of $1.03 billion. During the same quarter in the previous year, the business posted $0.63 earnings per share. The firm's quarterly revenue was down 4.9% compared to the same quarter last year.

Fresh Del Monte Produce Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, June 11th. Stockholders of record on Tuesday, May 19th were given a dividend of $0.30 per share. The ex-dividend date of this dividend was Tuesday, May 19th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 4.5%. Fresh Del Monte Produce's payout ratio is 82.76%.

Insiders Place Their Bets

In other news, Director Ahmad Abu-Ghazaleh acquired 4,000 shares of Fresh Del Monte Produce stock in a transaction on Thursday, June 11th. The stock was bought at an average cost of $29.41 per share, with a total value of $117,640.00. Following the completion of the purchase, the director owned 4,000 shares of the company's stock, valued at $117,640. This represents a ∞ increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, SVP Marissa R. Tenazas sold 1,046 shares of the firm's stock in a transaction dated Thursday, April 2nd. The stock was sold at an average price of $40.40, for a total transaction of $42,258.40. Following the completion of the transaction, the senior vice president owned 8,050 shares of the company's stock, valued at approximately $325,220. The trade was a 11.50% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 30.60% of the company's stock.

Institutional Investors Weigh In On Fresh Del Monte Produce

Several hedge funds have recently made changes to their positions in the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in Fresh Del Monte Produce by 4.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 20,090 shares of the company's stock valued at $619,000 after purchasing an additional 879 shares during the period. Millennium Management LLC boosted its position in shares of Fresh Del Monte Produce by 1,647.2% in the first quarter. Millennium Management LLC now owns 596,496 shares of the company's stock worth $18,390,000 after buying an additional 562,356 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in shares of Fresh Del Monte Produce by 10.7% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 94,910 shares of the company's stock worth $2,926,000 after buying an additional 9,202 shares during the period. Jane Street Group LLC grew its holdings in shares of Fresh Del Monte Produce by 2,889.0% during the first quarter. Jane Street Group LLC now owns 122,716 shares of the company's stock valued at $3,783,000 after buying an additional 127,116 shares in the last quarter. Finally, Prudential Financial Inc. grew its holdings in shares of Fresh Del Monte Produce by 25.4% during the second quarter. Prudential Financial Inc. now owns 9,016 shares of the company's stock valued at $292,000 after buying an additional 1,829 shares in the last quarter. Hedge funds and other institutional investors own 64.83% of the company's stock.

About Fresh Del Monte Produce

Fresh Del Monte Produce Inc is a leading producer, marketer and distributor of fresh and fresh-cut fruits and vegetables worldwide. The company offers a wide range of products including bananas, pineapples, melons, grapes and avocados, along with value-added items such as fruit salads, vegetable trays and snack packs under the Del Monte® brand.

Founded in 1989 as a spin-off from Del Monte, Fresh Del Monte has developed a global supply chain that spans production farms, ripening facilities and packaging centers across Latin America, North America, Europe, Asia and Africa.

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