Nomad Foods (NYSE:NOMD) Sets New 1-Year Low - Time to Sell?

Key Points

• Nomad Foods hit a new 52‑week low of $9.82 and was last trading around $10.13 on heavy volume, down from a prior close of $10.26.
• Analyst coverage is mixed after recent cuts to price targets (average target ~$13.67); three analysts rate the stock Buy, two rate Sell, leaving an overall average rating of Hold.
• The company pays a high dividend yield of 6.7% (annualized $0.68) with a payout ratio of ~66.7%; the stock has a market cap of $1.44 billion and a PE of about 9.9.

Shares of Nomad Foods Limited (NYSE:NOMD - Get Free Report) reached a new 52-week low during trading on Tuesday . The company traded as low as $9.82 and last traded at $10.1250, with a volume of 2447436 shares. The stock had previously closed at $10.26.

Wall Street Analyst Weigh In

NOMD has been the topic of a number of research analyst reports. Barclays reduced their target price on Nomad Foods from $15.00 to $13.00 and set an "overweight" rating on the stock in a report on Monday, March 2nd. Zacks Research lowered Nomad Foods from a "hold" rating to a "strong sell" rating in a research note on Monday, March 2nd. BTIG Research cut their price objective on Nomad Foods from $18.00 to $15.00 and set a "buy" rating on the stock in a report on Monday, March 2nd. Weiss Ratings lowered Nomad Foods from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Monday, March 2nd. Finally, Mizuho decreased their target price on Nomad Foods from $15.00 to $13.00 and set an "outperform" rating for the company in a report on Tuesday, March 3rd. Three analysts have rated the stock with a Buy rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $13.67.

Nomad Foods Trading Down 1.3%

The business's 50-day moving average is $12.11 and its two-hundred day moving average is $12.58. The company has a current ratio of 1.07, a quick ratio of 0.66 and a debt-to-equity ratio of 0.90. The stock has a market capitalization of $1.44 billion, a PE ratio of 9.93 and a beta of 0.74.

Nomad Foods Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, February 26th. Stockholders of record on Wednesday, February 11th were given a $0.17 dividend. The ex-dividend date of this dividend was Wednesday, February 11th. This represents a $0.68 annualized dividend and a dividend yield of 6.7%. Nomad Foods's dividend payout ratio is presently 66.67%.

Hedge Funds Weigh In On Nomad Foods

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Boston Partners boosted its holdings in Nomad Foods by 40.3% in the 2nd quarter. Boston Partners now owns 14,323,433 shares of the company's stock worth $243,276,000 after acquiring an additional 4,114,150 shares during the period. Alliancebernstein L.P. lifted its position in shares of Nomad Foods by 0.4% during the second quarter. Alliancebernstein L.P. now owns 7,330,537 shares of the company's stock worth $124,546,000 after purchasing an additional 27,177 shares in the last quarter. Polaris Capital Management LLC boosted its stake in shares of Nomad Foods by 138.8% in the third quarter. Polaris Capital Management LLC now owns 3,441,900 shares of the company's stock valued at $45,261,000 after purchasing an additional 2,000,400 shares during the period. Royce & Associates LP grew its holdings in Nomad Foods by 1.3% during the 4th quarter. Royce & Associates LP now owns 2,484,858 shares of the company's stock valued at $31,086,000 after purchasing an additional 33,052 shares in the last quarter. Finally, Ruffer LLP purchased a new stake in Nomad Foods during the 4th quarter worth $26,823,000. 75.26% of the stock is owned by institutional investors and hedge funds.

About Nomad Foods

Nomad Foods Limited is a leading frozen foods company headquartered in the United Kingdom, operating under the ticker symbol NOMD on the New York Stock Exchange. The company's portfolio comprises well-known consumer brands such as Birds Eye, iglo, Findus, Goodfella's and Aunt Bessie's, covering a wide range of categories including vegetables, seafood, ready meals, pizzas and desserts. Nomad Foods focuses on delivering convenient, high-quality frozen products designed to meet evolving consumer preferences for taste, nutrition and ease of preparation.

Formed in 2015 through the acquisition of Iglo Group by investment firms Permira and Goldman Sachs Asset Management, Nomad Foods was created with the strategy of building Europe's largest frozen foods platform.

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