Fresh Del Monte Produce (NYSE:FDP) Shares Gap Up on Earnings Beat

Key Points

• Fresh Del Monte Produce's stock price gapped up to $38.90 after reporting quarterly earnings of $1.23 per share, exceeding expectations of $0.95.
• The company announced a quarterly dividend of $0.30 with a yield of 2.99%, reflecting a payout ratio of 39.22%.
• Institutional investors hold 64.83% of Fresh Del Monte Produce's stock, highlighting significant confidence from large investors in the company's prospects.

Fresh Del Monte Produce, Inc. (NYSE:FDP - Get Free Report)'s share price gapped up prior to trading on Wednesday following a stronger than expected earnings report. The stock had previously closed at $36.07, but opened at $38.90. Fresh Del Monte Produce shares last traded at $40.25, with a volume of 146,661 shares changing hands.

The company reported $1.23 earnings per share for the quarter, beating analysts' consensus estimates of $0.95 by $0.28. Fresh Del Monte Produce had a net margin of 3.49% and a return on equity of 6.84%. The business had revenue of $1.18 billion during the quarter, compared to the consensus estimate of $1.16 billion. During the same quarter in the prior year, the firm earned $1.06 EPS. The company's revenue for the quarter was up 3.8% compared to the same quarter last year.

Fresh Del Monte Produce Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, September 5th. Shareholders of record on Wednesday, August 13th will be given a $0.30 dividend. The ex-dividend date is Wednesday, August 13th. This represents a $1.20 annualized dividend and a yield of 3.2%. Fresh Del Monte Produce's dividend payout ratio is 38.46%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. SummerHaven Investment Management LLC increased its stake in shares of Fresh Del Monte Produce by 1.2% during the 2nd quarter. SummerHaven Investment Management LLC now owns 36,419 shares of the company's stock worth $1,181,000 after purchasing an additional 415 shares during the last quarter. Arizona State Retirement System increased its stake in shares of Fresh Del Monte Produce by 5.0% during the 1st quarter. Arizona State Retirement System now owns 11,688 shares of the company's stock worth $360,000 after purchasing an additional 558 shares during the last quarter. Bank of Montreal Can increased its stake in shares of Fresh Del Monte Produce by 7.4% during the 4th quarter. Bank of Montreal Can now owns 9,669 shares of the company's stock worth $321,000 after purchasing an additional 666 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in shares of Fresh Del Monte Produce by 3.7% during the 4th quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 19,211 shares of the company's stock worth $638,000 after purchasing an additional 684 shares during the last quarter. Finally, MetLife Investment Management LLC increased its stake in shares of Fresh Del Monte Produce by 4.0% during the 4th quarter. MetLife Investment Management LLC now owns 20,684 shares of the company's stock worth $687,000 after purchasing an additional 786 shares during the last quarter. Institutional investors own 64.83% of the company's stock.

Fresh Del Monte Produce Trading Down 0.7%

The company's 50 day moving average price is $33.90 and its 200 day moving average price is $32.29. The company has a market cap of $1.79 billion, a price-to-earnings ratio of 11.96 and a beta of 0.42. The company has a debt-to-equity ratio of 0.10, a quick ratio of 1.11 and a current ratio of 2.08.

Fresh Del Monte Produce Company Profile

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.