Nomad Foods (NYSE:NOMD) Sees Unusually-High Trading Volume After Strong Earnings

Key Points

• Nomad Foods experienced a significant surge in trading volume, with approximately 1.67 million shares traded—an increase of 110% following its stronger-than-expected earnings report.
• The company reported an EPS of $0.45, slightly surpassing analysts' expectations of $0.44, and achieved revenue of $879.27 million, exceeding forecasts by over $116 million.
• Nomad Foods plans to distribute a quarterly dividend of $0.17 on August 26th, representing a yield of 4.3% and a payout ratio of 45.33%.

Nomad Foods Limited (NYSE:NOMD - Get Free Report) saw strong trading volume on Thursday following a better than expected earnings announcement. 1,670,896 shares traded hands during mid-day trading, an increase of 110% from the previous session's volume of 795,254 shares.The stock last traded at $15.12 and had previously closed at $15.28.

The company reported $0.45 earnings per share for the quarter, beating analysts' consensus estimates of $0.44 by $0.01. Nomad Foods had a return on equity of 10.26% and a net margin of 6.93%. The firm had revenue of $879.27 million during the quarter, compared to analysts' expectations of $762.81 million. During the same period last year, the firm posted $0.44 EPS. The business's revenue was down .8% on a year-over-year basis.

Nomad Foods Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, August 26th. Stockholders of record on Monday, August 11th will be given a $0.17 dividend. This represents a $0.68 annualized dividend and a dividend yield of 4.4%. The ex-dividend date is Monday, August 11th. Nomad Foods's dividend payout ratio (DPR) is currently 46.58%.

Wall Street Analyst Weigh In

Several analysts have issued reports on NOMD shares. Barclays dropped their price target on Nomad Foods from $20.00 to $18.00 and set an "overweight" rating on the stock in a research note on Friday. Wall Street Zen cut Nomad Foods from a "buy" rating to a "hold" rating in a report on Friday, May 9th. Finally, Mizuho cut their price target on Nomad Foods from $26.00 to $23.00 and set an "outperform" rating for the company in a research note on Monday, July 28th.

Institutional Investors Weigh In On Nomad Foods

Large investors have recently modified their holdings of the stock. Summit Securities Group LLC purchased a new position in shares of Nomad Foods during the 1st quarter valued at $32,000. Johnson Financial Group Inc. purchased a new position in shares of Nomad Foods during the 4th quarter valued at $62,000. Tower Research Capital LLC TRC grew its position in shares of Nomad Foods by 13,508.5% during the 4th quarter. Tower Research Capital LLC TRC now owns 6,396 shares of the company's stock valued at $107,000 after purchasing an additional 6,349 shares in the last quarter. Lazard Asset Management LLC purchased a new position in shares of Nomad Foods during the 4th quarter valued at $134,000. Finally, Quarry LP lifted its holdings in shares of Nomad Foods by 964.8% during the 4th quarter. Quarry LP now owns 8,646 shares of the company's stock worth $145,000 after acquiring an additional 7,834 shares during the last quarter. Hedge funds and other institutional investors own 75.26% of the company's stock.

Nomad Foods Price Performance

The company has a current ratio of 1.02, a quick ratio of 0.63 and a debt-to-equity ratio of 0.81. The company has a market capitalization of $2.35 billion, a P/E ratio of 10.49 and a beta of 0.72. The business's fifty day moving average price is $17.16 and its 200-day moving average price is $18.26.

About Nomad Foods

Nomad Foods Limited, together with its subsidiaries, manufactures, markets, and distributes a range of frozen food products in the United Kingdom and internationally. The company offers frozen fish products, including fish fingers, coated fish, and natural fish; ready-to-cook vegetable products, such as peas and spinach; and frozen poultry and meat products comprising nuggets, grills, and burgers.