Simply Good Foods (NASDAQ:SMPL) Hits New 1-Year Low - Should You Sell?

Key Points

• SMPL fell to a new 52-week low of $9.69, trading about 2.4% lower, with its market price below both its 50-day and 200-day moving averages.
• Wall Street’s consensus rating is “Hold”, with an average price target of $14.45; TD Cowen recently cut its target to $11, while other targets range from $11 to $15.
• The company faces significant operational and legal risks, including a nearly 17% contraction in the OWYN brand, a reported $187 million impairment charge and shareholder class-action allegations, despite beating quarterly earnings and revenue estimates.

The Simply Good Foods Company (NASDAQ:SMPL - Get Free Report)'s share price hit a new 52-week low during mid-day trading on Wednesday . The company traded as low as $9.69 and last traded at $9.7850, with a volume of 106554 shares traded. The stock had previously closed at $10.01.

More Simply Good Foods News

Here are the key news stories impacting Simply Good Foods this week:

• Positive Sentiment: One recent investment analysis argues that SMPL may be undervalued despite its operational problems, potentially offering upside if management stabilizes the business and restores growth. Simply Good Foods: Too Tasty To Ignore, Even With Its Problems
• Neutral Sentiment: Analysts have a consensus rating of “Hold”, indicating limited conviction that the shares will outperform or materially underperform in the near term. Simply Good Foods Receives Consensus Hold Rating
• Negative Sentiment: Several law firms, including Levi & Korsinsky, Pomerantz, Rosen, Kaplan Fox and others, are soliciting investors who purchased SMPL shares between October 24, 2024, and April 8, 2026, to participate in or lead the class action. The repeated notices increase visibility around the company’s legal and reputational risks. Levi & Korsinsky Class Action Notice
• Negative Sentiment: The allegations center on projected fiscal 2025 OWYN sales of $135 million to $145 million, subsequent brand contraction of nearly 17%, and a reported $187 million impairment charge. Plaintiffs claim investors were not adequately informed about these risks, contributing to a substantial decline in SMPL shares and raising the possibility of litigation costs or settlement payments. SMPL Shareholder Alert

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on SMPL. TD Cowen dropped their price target on shares of Simply Good Foods from $13.00 to $11.00 and set a "hold" rating on the stock in a research report on Wednesday, August 26th. Deutsche Bank Aktiengesellschaft reissued a "hold" rating and issued a $14.00 price target on shares of Simply Good Foods in a report on Friday, July 10th. Zacks Research upgraded Simply Good Foods from a "strong sell" rating to a "hold" rating in a research note on Monday, June 8th. Truist Financial set a $11.00 target price on Simply Good Foods in a research report on Wednesday, August 26th. Finally, Jefferies Financial Group set a $15.00 price target on shares of Simply Good Foods in a research note on Wednesday, August 26th. Three investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $14.45.

Simply Good Foods Stock Down 2.4%

The company has a debt-to-equity ratio of 0.28, a current ratio of 4.80 and a quick ratio of 3.10. The firm has a market capitalization of $863.81 million, a P/E ratio of -4.48 and a beta of 0.17. The company's 50-day simple moving average is $10.80 and its two-hundred day simple moving average is $12.18.

Simply Good Foods (NASDAQ:SMPL - Get Free Report) last announced its quarterly earnings data on Thursday, July 9th. The financial services provider reported $0.42 EPS for the quarter, beating the consensus estimate of $0.35 by $0.07. Simply Good Foods had a negative net margin of 14.28% and a positive return on equity of 9.34%. The firm had revenue of $356.98 million for the quarter, compared to the consensus estimate of $332.99 million. During the same period last year, the firm earned $0.51 EPS. The company's revenue was down 6.3% on a year-over-year basis. As a group, research analysts expect that The Simply Good Foods Company will post 1.54 earnings per share for the current year.

Institutional Investors Weigh In On Simply Good Foods

Several large investors have recently modified their holdings of SMPL. BlackRock Inc. purchased a new position in Simply Good Foods in the 2nd quarter worth approximately $180,913,000. River Road Asset Management LLC purchased a new stake in Simply Good Foods in the 4th quarter valued at about $31,857,000. Oaktree Capital Management LP purchased a new position in Simply Good Foods during the first quarter worth about $16,200,000. Arrowstreet Capital Limited Partnership raised its stake in shares of Simply Good Foods by 179.7% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 1,472,753 shares of the financial services provider's stock valued at $21,134,000 after acquiring an additional 946,216 shares during the period. Finally, Bank of New York Mellon Corp purchased a new position in shares of Simply Good Foods during the 2nd quarter worth approximately $7,393,000. Institutional investors own 88.45% of the company's stock.

Simply Good Foods Company Profile

Simply Good Foods Co NASDAQ: SMPL is a consumer packaged food company focused on nutrition-focused snacks and beverages. Its portfolio is built around products that support low-carbohydrate, high-protein and better-for-you eating preferences.

The company's principal brands include Atkins, which offers nutrition bars, shakes, frozen meals, confectionery products and other low-carbohydrate foods, and Quest, which markets protein bars, cookies, chips, snacks, powders and ready-to-drink beverages.

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