Fresh Del Monte Produce (NYSE:DMC) Stock Jumps 2.2% - Here's Why

Key Points

• Fresh Del Monte Produce shares rose 2.2% to about $30.14 in Monday trading, with volume slightly below the stock’s average.
• Wall Street Zen upgraded the stock from “hold” to “buy,” although the overall analyst consensus remains “Hold.”
• The company reported quarterly revenue of $1.22 billion and earnings of $0.72 per share, while maintaining a $0.30 quarterly dividend that yields approximately 4.0% annually.

Fresh Del Monte Produce Inc (NYSE:DMC - Get Free Report) shares rose 2.2% during trading on Monday. The stock traded as high as $30.24 and last traded at $30.1370. Approximately 430,681 shares traded hands during mid-day trading, a decline of 7% from the average daily volume of 462,400 shares. The stock had previously closed at $29.48.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on the company. Wall Street Zen raised Fresh Del Monte Produce from a "hold" rating to a "buy" rating in a research report on Saturday, September 12th. Weiss Ratings began coverage on Fresh Del Monte Produce in a research report on Wednesday, August 5th. They set a "hold (c)" rating on the stock. One analyst has rated the stock with a Hold rating. Based on data from MarketBeat, Fresh Del Monte Produce currently has a consensus rating of "Hold".

Fresh Del Monte Produce Price Performance

The firm has a market capitalization of $1.42 billion, a price-to-earnings ratio of 42.45 and a beta of 0.25. The company has a current ratio of 2.23, a quick ratio of 1.04 and a debt-to-equity ratio of 0.21. The stock has a 50 day moving average price of $30.99.

Fresh Del Monte Produce (NYSE:DMC - Get Free Report) last announced its earnings results on Thursday, July 30th. The company reported $0.72 earnings per share for the quarter. Fresh Del Monte Produce had a net margin of 0.79% and a return on equity of 6.43%. The business had revenue of $1.22 billion during the quarter.

Fresh Del Monte Produce Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, September 4th. Investors of record on Wednesday, August 12th were paid a $0.30 dividend. The ex-dividend date was Wednesday, August 12th. This represents a $1.20 annualized dividend and a dividend yield of 4.0%. Fresh Del Monte Produce's dividend payout ratio is presently 169.01%.

Insiders Place Their Bets

In related 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 bought at an average price of $29.89 per share, with a total value of $358,680.00. Following the transaction, the chief operating officer directly owned 71,930 shares in the company, valued at approximately $2,149,987.70. This represents a 20.02% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. 30.60% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Fresh Del Monte Produce

A number of institutional investors have recently modified their holdings of the stock. Integrated Wealth Concepts LLC purchased a new position in shares of Fresh Del Monte Produce in the 2nd quarter worth about $26,000. Farther Finance Advisors LLC bought a new position in Fresh Del Monte Produce in the 3rd quarter worth about $84,000. GAMMA Investing LLC purchased a new stake in Fresh Del Monte Produce during the 3rd quarter valued at about $238,000. Arizona State Retirement System purchased a new stake in Fresh Del Monte Produce during the 2nd quarter valued at about $302,000. Finally, Outfitters Financial LLC purchased a new stake in Fresh Del Monte Produce during the 2nd quarter valued at about $912,000. 64.83% of the stock is owned by hedge funds and other institutional investors.

Fresh Del Monte Produce Company Profile

Fresh Del Monte Produce Inc is a global producer, distributor and marketer of fresh and prepared fruits and vegetables. Its product portfolio includes bananas, pineapples, melons, avocados, tomatoes and berries, along with fresh-cut fruit and vegetables, fruit snacks, juices and other prepared foods. The company sells products under the Del Monte brand and through private-label offerings.

Fresh Del Monte operates an integrated agricultural and supply-chain network that includes farming, sourcing, packing, processing, transportation and distribution.

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