Nomad Foods (NYSE:NOMD) Shares Pass Below 50 Day Moving Average - Should You Sell?

Key Points

• Nomad Foods shares fell below their 50-day moving average, trading as low as $11.59 versus the $11.68 average. The stock was last quoted near $11.61, while its 200-day moving average stood at $10.74.
• Analyst sentiment is mixed: Nomad Foods has an average “Hold” rating and a $13.25 price target, with ratings ranging from “Strong Sell” to “Buy.” Recent targets include $11 from Deutsche Bank, $14 from Barclays and $15 from BTIG Research.
• The company exceeded quarterly earnings expectations, reporting $0.45 in EPS versus $0.37 expected, although revenue declined 3.1% year over year. Nomad Foods also pays a quarterly dividend of $0.17, representing a 5.9% annualized yield, and insiders recently increased their holdings through share purchases.

Shares of Nomad Foods Limited (NYSE:NOMD - Get Free Report) passed below its 50-day moving average during trading on Wednesday . The stock has a 50-day moving average of $11.68 and traded as low as $11.59. Nomad Foods shares last traded at $11.6110, with a volume of 850,414 shares traded.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on NOMD shares. Barclays boosted their target price on shares of Nomad Foods from $12.00 to $14.00 and gave the company an "overweight" rating in a research note on Monday, July 20th. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and issued a $11.00 price objective on shares of Nomad Foods in a report on Tuesday, July 21st. BTIG Research reiterated a "buy" rating and set a $15.00 price objective on shares of Nomad Foods in a research report on Friday, August 14th. Weiss Ratings raised Nomad Foods from a "sell (d+)" rating to a "hold (c-)" rating in a report on Thursday, July 2nd. Finally, Zacks Research cut Nomad Foods from a "hold" rating to a "strong sell" rating in a research report on Monday, August 17th. Three research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Nomad Foods presently has an average rating of "Hold" and an average target price of $13.25.

Nomad Foods Stock Down 0.5%

The company's 50 day moving average price is $11.68 and its two-hundred day moving average price is $10.74. The company has a current ratio of 1.10, a quick ratio of 0.66 and a debt-to-equity ratio of 0.90. The firm has a market cap of $1.62 billion, a PE ratio of 11.38 and a beta of 0.69.

Nomad Foods (NYSE:NOMD - Get Free Report) last posted its quarterly earnings data on Thursday, August 13th. The company reported $0.45 EPS for the quarter, topping the consensus estimate of $0.37 by $0.08. Nomad Foods had a return on equity of 8.88% and a net margin of 4.20%.The firm had revenue of $825.94 million during the quarter, compared to analyst estimates of $825.02 million. During the same period in the prior year, the business posted $0.40 EPS. Nomad Foods's revenue was down 3.1% on a year-over-year basis. Nomad Foods has set its FY 2026 guidance at 1.604-1.779 EPS. On average, equities research analysts expect that Nomad Foods Limited will post 1.69 EPS for the current fiscal year.

Nomad Foods Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, August 27th. Stockholders of record on Tuesday, August 11th were paid a $0.17 dividend. The ex-dividend date of this dividend was Tuesday, August 11th. This represents a $0.68 dividend on an annualized basis and a dividend yield of 5.9%. Nomad Foods's dividend payout ratio is 66.67%.

Insider Transactions at Nomad Foods

In other Nomad Foods news, CFO Ruben Baldew bought 28,290 shares of the business's stock in a transaction that occurred on Wednesday, August 19th. The stock was purchased at an average price of $11.85 per share, for a total transaction of $335,236.50. Following the completion of the transaction, the chief financial officer owned 367,172 shares of the company's stock, valued at $4,350,988.20. This trade represents a 8.35% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Dominic Brisby purchased 50,000 shares of the firm's stock in a transaction on Monday, August 24th. The stock was bought at an average price of $12.38 per share, for a total transaction of $619,000.00. Following the purchase, the chief executive officer owned 726,794 shares in the company, valued at approximately $8,997,709.72. This represents a 7.39% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Corporate insiders own 17.27% of the company's stock.

Hedge Funds Weigh In On Nomad Foods

Several hedge funds have recently bought and sold shares of NOMD. Tidal Investments LLC grew its stake in Nomad Foods by 1.9% in the 2nd quarter. Tidal Investments LLC now owns 38,037 shares of the company's stock worth $646,000 after acquiring an additional 726 shares in the last quarter. California Public Employees Retirement System boosted its holdings in Nomad Foods by 0.4% in the second quarter. California Public Employees Retirement System now owns 268,627 shares of the company's stock worth $4,564,000 after acquiring an additional 1,044 shares in the last quarter. Entropy Technologies LP lifted its stake in shares of Nomad Foods by 1.7% during the first quarter. Entropy Technologies LP now owns 71,479 shares of the company's stock worth $687,000 after buying an additional 1,188 shares during the period. Osaic Holdings Inc. lifted its holdings in shares of Nomad Foods by 87.4% during the second quarter. Osaic Holdings Inc. now owns 2,658 shares of the company's stock worth $45,000 after purchasing an additional 1,240 shares during the period. Finally, Nebula Research & Development LLC lifted its position in Nomad Foods by 4.4% during the second quarter. Nebula Research & Development LLC now owns 35,152 shares of the company's stock valued at $597,000 after purchasing an additional 1,481 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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