Fresh Del Monte Produce (NYSE:FDP) Shares Gap Up After Strong Earnings

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.

Shares of Fresh Del Monte Produce, Inc. (NYSE:FDP - Get Free Report) gapped up before the market opened 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.

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

Fresh Del Monte Produce Dividend Announcement

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

Institutional Investors Weigh In On Fresh Del Monte Produce

Several hedge funds have recently made changes to their positions in FDP. SummerHaven Investment Management LLC grew its stake in shares of Fresh Del Monte Produce by 1.2% during the second quarter. SummerHaven Investment Management LLC now owns 36,419 shares of the company's stock valued at $1,181,000 after purchasing an additional 415 shares during the last quarter. Arizona State Retirement System raised its holdings in shares of Fresh Del Monte Produce by 5.0% during the first quarter. Arizona State Retirement System now owns 11,688 shares of the company's stock worth $360,000 after acquiring an additional 558 shares during the period. 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. grew its stake in Fresh Del Monte Produce by 3.7% in the 4th quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 19,211 shares of the company's stock valued at $638,000 after buying an additional 684 shares during the last quarter. Finally, MetLife Investment Management LLC grew its position 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 in the last quarter. Institutional investors own 64.83% of the company's stock.

Fresh Del Monte Produce Stock Performance

The stock's 50-day simple moving average is $33.84 and its 200-day simple moving average is $32.24. The company has a current ratio of 2.08, a quick ratio of 1.01 and a debt-to-equity ratio of 0.10. The stock has a market cap of $1.79 billion, a price-to-earnings ratio of 11.98 and a beta of 0.38.

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.