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

Key Points

• 52-week low: Nomad Foods hit a new 52-week low, trading as low as $9.41 and last at $9.48 (down ~1.8%), with the 50-day and 200-day simple moving averages at $10.11 and $11.48 respectively.
• Mixed analyst sentiment: Analysts have cut ratings and price targets (notably Weiss downgraded to "sell" and several firms lowered targets), leaving a consensus "Hold" with an average price target of $12.50 and a split of 3 Buy, 1 Hold, and 2 Sell ratings.
• High dividend yield: The company declared a quarterly dividend of $0.17 ($0.68 annualized), implying a 7.1% yield with an ex-dividend date of May 12 and a payout ratio of about 66.7%.

Nomad Foods Limited (NYSE:NOMD - Get Free Report) reached a new 52-week low during trading on Friday . The stock traded as low as $9.41 and last traded at $9.4810, with a volume of 447582 shares traded. The stock had previously closed at $9.72.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on NOMD shares. Weiss Ratings downgraded shares of Nomad Foods from a "hold (c-)" rating to a "sell (d+)" rating in a report on Monday, March 2nd. Mizuho lowered their price objective on shares of Nomad Foods from $15.00 to $13.00 and set an "outperform" rating on the stock in a research report on Tuesday, March 3rd. Deutsche Bank Aktiengesellschaft restated a "hold" rating and issued a $10.00 target price (down from $15.00) on shares of Nomad Foods in a report on Monday, March 30th. BTIG Research cut their target price on shares of Nomad Foods from $18.00 to $15.00 and set a "buy" rating for the company in a research report on Monday, March 2nd. Finally, Barclays decreased their target price on shares of Nomad Foods from $13.00 to $12.00 and set an "overweight" rating for the company in a research note on Tuesday, April 14th. Three research analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $12.50.

Nomad Foods Stock Down 1.8%

The company's 50-day simple moving average is $10.11 and its two-hundred day simple moving average is $11.48. The company has a debt-to-equity ratio of 0.90, a current ratio of 1.07 and a quick ratio of 0.66. The firm has a market capitalization of $1.36 billion, a P/E ratio of 9.35 and a beta of 0.74.

Nomad Foods Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, May 28th. Shareholders of record on Tuesday, May 12th will be issued a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a yield of 7.1%. The ex-dividend date of this dividend is Tuesday, May 12th. Nomad Foods's payout ratio is currently 66.67%.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the stock. Polaris Capital Management LLC lifted its position 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 acquiring an additional 2,000,400 shares in the last quarter. Moody Aldrich Partners LLC raised its stake in Nomad Foods by 188.1% during the 3rd quarter. Moody Aldrich Partners LLC now owns 247,558 shares of the company's stock valued at $3,255,000 after purchasing an additional 161,623 shares during the period. Atlantic Investment Management Inc. purchased a new position in Nomad Foods in the 3rd quarter worth approximately $9,494,000. American Assets Inc. purchased a new position in Nomad Foods in the 3rd quarter worth approximately $526,000. Finally, Invenomic Capital Management LP boosted its stake in Nomad Foods by 144.2% in the 3rd quarter. Invenomic Capital Management LP now owns 952,268 shares of the company's stock worth $12,522,000 after purchasing an additional 562,304 shares during the period. Institutional investors own 75.26% of the company's stock.

Nomad Foods Company Profile

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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