Fresh Del Monte Produce (NYSE:DMC) Shares Down 7.5% - What's Next?

Key Points

• Fresh Del Monte Produce shares fell 7.5% to about $26.84, with trading volume 44% above average. The stock remains below its 50-day moving average of $30.67, while analysts’ consensus rating is “Hold.”
• The company’s latest quarterly results exceeded expectations, with adjusted EPS of $0.50 versus the $0.46 consensus and revenue of $1.10 billion, up 7.2% year over year.
• Fresh Del Monte declared a quarterly dividend of $0.30 per share, equivalent to a 4.5% annualized yield, but its 169% payout ratio raises questions about dividend sustainability. Insiders own 30.6% of the company, and the COO recently bought 12,000 shares.

Fresh Del Monte Produce Inc (NYSE:DMC - Get Free Report)'s stock price dropped 7.5% during trading on Thursday. The stock traded as low as $27.20 and last traded at $26.8390. Approximately 547,769 shares traded hands during trading, an increase of 44% from the average daily volume of 381,014 shares. The stock had previously closed at $29.00.

Analysts Set New Price Targets

DMC has been the topic of a number of recent research reports. Wall Street Zen raised shares of Fresh Del Monte Produce from a "hold" rating to a "buy" rating in a research note on Saturday, September 12th. Weiss Ratings initiated coverage on shares of Fresh Del Monte Produce in a report on Wednesday, August 5th. They issued a "hold (c)" rating for the company. One investment analyst has rated the stock with a Hold rating. Based on data from MarketBeat.com, the company has a consensus rating of "Hold".

Fresh Del Monte Produce Stock Performance

The company has a market cap of $1.27 billion, a P/E ratio of 37.92 and a beta of 0.25. The company has a debt-to-equity ratio of 0.21, a quick ratio of 1.04 and a current ratio of 2.23. The stock's fifty day simple moving average is $30.67.

Fresh Del Monte Produce (NYSE:DMC - Get Free Report) last announced its earnings results on Thursday, October 29th. The company reported $0.50 EPS for the quarter, topping analysts' consensus estimates of $0.46 by $0.04. The business had revenue of $1.10 billion during the quarter. Fresh Del Monte Produce had a net margin of 0.79% and a return on equity of 6.43%. The business's revenue for the quarter was up 7.2% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.69 earnings per share.

Fresh Del Monte Produce Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, December 4th. Shareholders of record on Wednesday, November 11th will be given a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a dividend yield of 4.5%. The ex-dividend date is Tuesday, November 10th. Fresh Del Monte Produce's payout ratio is 169.01%.

Insider Buying and Selling

In other Fresh Del Monte Produce news, COO Mohammed Abbas acquired 12,000 shares of Fresh Del Monte Produce stock in a transaction that occurred on Tuesday, August 4th. The stock was purchased at an average cost of $29.89 per share, with a total value of $358,680.00. Following the purchase, the chief operating officer owned 71,930 shares in the company, valued at approximately $2,149,987.70. The trade was a 20.02% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Corporate insiders own 30.60% of the company's stock.

Hedge Funds Weigh In On Fresh Del Monte Produce

Several large investors have recently bought and sold shares of DMC. Integrated Wealth Concepts LLC bought a new stake in shares of Fresh Del Monte Produce in the 2nd quarter valued at approximately $26,000. Fortitude Family Office LLC bought a new stake in shares of Fresh Del Monte Produce during the third quarter valued at approximately $61,000. Farther Finance Advisors LLC bought a new position in Fresh Del Monte Produce in the 3rd quarter worth approximately $84,000. Signaturefd LLC raised its position in shares of Fresh Del Monte Produce by 212.0% during the 3rd quarter. Signaturefd LLC now owns 4,374 shares of the company's stock valued at $131,000 after acquiring an additional 2,972 shares during the last quarter. Finally, Moss Adams Wealth Advisors LLC bought a new position in shares of Fresh Del Monte Produce during the third quarter worth $201,000. 64.83% of the stock is currently owned by institutional investors and hedge funds.

About Fresh Del Monte Produce

Fresh Del Monte Produce Inc is a vertically integrated producer, distributor and marketer of fresh and prepared fruits and vegetables. Its product portfolio includes bananas, pineapples, melons, avocados, berries, grapes, tomatoes and other fresh produce, along with prepared fruit, vegetables, juices and snacks sold under the Del Monte brand and other labels.

The company manages activities across the produce supply chain, including cultivation, sourcing, harvesting, processing, packaging, transportation and distribution.

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