Nomad Foods (NYSE:NOMD) Sets New 12-Month Low - Should You Sell?

Key Points

• Nomad Foods' stock hit a new 52-week low at $11.99, with a recent trading price of $12.01, marking a potential concern for investors.
• A number of analysts, including Zacks Research, have downgraded Nomad Foods, with ratings shifting towards "strong sell" and price targets adjusted downwards to as low as $18.00.
• The company has declared a quarterly dividend of $0.17, representing a 5.6% yield and a payout ratio of 46.58% as of the last report.

Nomad Foods Limited (NYSE:NOMD - Get Free Report)'s stock price reached a new 52-week low on Monday . The stock traded as low as $11.99 and last traded at $12.01, with a volume of 281525 shares changing hands. The stock had previously closed at $12.14.

Analyst Ratings Changes

A number of analysts have commented on NOMD shares. Zacks Research lowered shares of Nomad Foods from a "hold" rating to a "strong sell" rating in a research note on Monday, September 29th. Barclays reduced their price target on shares of Nomad Foods from $20.00 to $18.00 and set an "overweight" rating for the company in a research report on Friday, August 8th. BTIG Research reduced their price target on shares of Nomad Foods from $20.00 to $18.00 and set a "buy" rating for the company in a research report on Wednesday, September 17th. Mizuho reduced their price target on shares of Nomad Foods from $23.00 to $20.00 and set an "outperform" rating for the company in a research report on Tuesday, August 12th. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of Nomad Foods in a research report on Wednesday, October 8th. Four equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Nomad Foods presently has an average rating of "Moderate Buy" and a consensus price target of $19.75.

Nomad Foods Stock Performance

The company has a debt-to-equity ratio of 0.81, a current ratio of 1.02 and a quick ratio of 0.63. The firm has a fifty day simple moving average of $14.39 and a 200 day simple moving average of $16.83. The company has a market cap of $1.85 billion, a price-to-earnings ratio of 8.26 and a beta of 0.70.

Nomad Foods (NYSE:NOMD - Get Free Report) last announced its quarterly earnings data on Wednesday, August 6th. The company reported $0.45 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.44 by $0.01. The business had revenue of $879.27 million for the quarter, compared to the consensus estimate of $762.81 million. Nomad Foods had a net margin of 6.93% and a return on equity of 10.26%. Nomad Foods's quarterly revenue was down .8% on a year-over-year basis. During the same quarter last year, the company posted $0.44 earnings per share. On average, sell-side analysts expect that Nomad Foods Limited will post 1.82 earnings per share for the current fiscal year.

Nomad Foods Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, August 26th. Stockholders of record on Monday, August 11th were paid a $0.17 dividend. The ex-dividend date was Monday, August 11th. This represents a $0.68 annualized dividend and a dividend yield of 5.6%. Nomad Foods's dividend payout ratio (DPR) is presently 46.58%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of NOMD. Boston Partners lifted its position in Nomad Foods by 40.3% in the second quarter. Boston Partners now owns 14,323,433 shares of the company's stock worth $243,276,000 after purchasing an additional 4,114,150 shares during the period. Norges Bank bought a new position in Nomad Foods in the second quarter worth $15,603,000. Qube Research & Technologies Ltd lifted its position in Nomad Foods by 164.1% in the second quarter. Qube Research & Technologies Ltd now owns 1,195,533 shares of the company's stock worth $20,312,000 after purchasing an additional 742,813 shares during the period. Perpetual Ltd lifted its position in Nomad Foods by 115.6% in the third quarter. Perpetual Ltd now owns 1,181,555 shares of the company's stock worth $15,537,000 after purchasing an additional 633,650 shares during the period. Finally, Ameriprise Financial Inc. lifted its position in Nomad Foods by 46.2% in the first quarter. Ameriprise Financial Inc. now owns 1,851,199 shares of the company's stock worth $36,376,000 after purchasing an additional 585,054 shares during the period. 75.26% of the stock is owned by institutional investors.

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.

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