Simply Good Foods (NASDAQ:SMPL) Stock Jumps 9% - Should You Buy?

Key Points

• Simply Good Foods shares jumped 9% to about $12.27, though trading volume was roughly 77% below the average session level.
• Recent earnings exceeded expectations, with quarterly EPS of $0.44 versus a $0.40 consensus and revenue of $333.31 million versus $327.03 million; however, revenue declined 9.7% year over year and net margin remained negative.
• Analyst sentiment is cautious: the stock has an average “Hold” rating, with 10 Holds, two Buys and one Sell, and a consensus price target of $13.36. Institutional investors own a substantial 88.45% of shares.

The Simply Good Foods Company (NASDAQ:SMPL - Get Free Report) shares shot up 9% on Monday. The company traded as high as $12.31 and last traded at $12.2650. 553,081 shares changed hands during trading, a decline of 77% from the average session volume of 2,452,521 shares. The stock had previously closed at $11.25.

Wall Street Analysts Forecast Growth

SMPL has been the topic of a number of recent research reports. UBS Group reduced their price target on shares of Simply Good Foods from $12.00 to $11.00 and set a "neutral" rating on the stock in a research report on Wednesday. Deutsche Bank Aktiengesellschaft restated a "hold" rating and set a $14.00 target price on shares of Simply Good Foods in a report on Friday, July 10th. Weiss Ratings lowered shares of Simply Good Foods from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Wednesday. Truist Financial set a $11.00 price objective on shares of Simply Good Foods in a report on Wednesday, August 26th. Finally, TD Cowen cut their price target on Simply Good Foods from $13.00 to $11.00 and set a "hold" rating on the stock in a research note on Wednesday, August 26th. Two research analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $13.36.

Simply Good Foods Trading Up 9.6%

The company has a debt-to-equity ratio of 0.24, a quick ratio of 3.87 and a current ratio of 5.57. The business has a fifty day simple moving average of $10.41 and a 200 day simple moving average of $12.93. The stock has a market capitalization of $1.07 billion, a price-to-earnings ratio of -7.21 and a beta of 0.19.

Simply Good Foods (NASDAQ:SMPL - Get Free Report) last posted its earnings results on Tuesday, October 27th. The financial services provider reported $0.44 earnings per share for the quarter, topping analysts' consensus estimates of $0.40 by $0.04. The company had revenue of $333.31 million during the quarter, compared to the consensus estimate of $327.03 million. Simply Good Foods had a positive return on equity of 9.36% and a negative net margin of 11.49%. The company's revenue was down 9.7% on a year-over-year basis. During the same quarter last year, the firm earned $0.46 earnings per share. As a group, research analysts expect that The Simply Good Foods Company will post 1.42 EPS for the current year.

Institutional Investors Weigh In On Simply Good Foods

Several institutional investors and hedge funds have recently made changes to their positions in the stock. BlackRock Inc. bought a new stake in shares of Simply Good Foods during the 2nd quarter valued at about $180,913,000. Oaktree Capital Management LP bought a new stake in Simply Good Foods in the first quarter worth approximately $16,200,000. Assenagon Asset Management S.A. increased its holdings in Simply Good Foods by 1,195.2% in the third quarter. Assenagon Asset Management S.A. now owns 1,112,684 shares of the financial services provider's stock worth $10,559,000 after purchasing an additional 1,026,775 shares in the last quarter. Counterpoint Mutual Funds LLC lifted its stake in Simply Good Foods by 3,594.3% in the third quarter. Counterpoint Mutual Funds LLC now owns 978,657 shares of the financial services provider's stock valued at $9,287,000 after buying an additional 952,166 shares during the period. Finally, Arrowstreet Capital Limited Partnership lifted its stake in Simply Good Foods by 179.7% in the first quarter. Arrowstreet Capital Limited Partnership now owns 1,472,753 shares of the financial services provider's stock valued at $21,134,000 after buying an additional 946,216 shares during the period. Institutional investors and hedge funds own 88.45% of the company's stock.

Simply Good Foods Company Profile

The Simply Good Foods Company NASDAQ: SMPL is a consumer packaged food company focused on convenient, nutrition-focused products. Its portfolio is built around the Atkins and Quest brands, which serve consumers seeking lower-carbohydrate, higher-protein and better-for-you food options.

The company offers a variety of products, including protein bars, snack bars, shakes, cookies, chips, confectionery items, protein powders and frozen foods. Its products are sold through grocery stores, mass merchants, club stores, drugstores, convenience stores, e-commerce platforms and other retail channels.

Simply Good Foods was established in 2017 through the combination of Conyers Park Acquisition Corp.

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