Simply Good Foods (NASDAQ:SMPL) Hits New 52-Week Low - Time to Sell?

Key Points

• The stock of Simply Good Foods (NASDAQ:SMPL) reached a new 52-week low at $28.28 during trading, indicating potential concern among investors.
• Despite the recent decline, analysts present a divided outlook, with four using a "hold" rating and five providing a "buy" rating, while the average target price is set at $39.88.
• CEO Geoff E. Tanner demonstrated confidence in the company by purchasing 6,050 shares at an average of $33.11 per share, increasing his holdings by 6.57%.

The Simply Good Foods Company (NASDAQ:SMPL - Get Free Report)'s stock price hit a new 52-week low during trading on Monday . The stock traded as low as $28.28 and last traded at $28.40, with a volume of 247658 shares changing hands. The stock had previously closed at $28.41.

Analyst Upgrades and Downgrades

Several brokerages have commented on SMPL. Stifel Nicolaus lowered their target price on shares of Simply Good Foods from $40.00 to $38.00 and set a "buy" rating for the company in a research note on Friday, June 27th. Sanford C. Bernstein set a $45.00 target price on shares of Simply Good Foods and gave the stock an "outperform" rating in a report on Friday, July 11th. Citigroup dropped their target price on shares of Simply Good Foods from $43.00 to $40.00 and set a "buy" rating on the stock in a report on Wednesday, June 18th. Wall Street Zen downgraded shares of Simply Good Foods from a "buy" rating to a "hold" rating in a report on Saturday, June 21st. Finally, UBS Group set a $36.00 target price on shares of Simply Good Foods and gave the stock a "neutral" rating in a report on Tuesday, July 1st. Four equities research analysts have rated the stock with a hold rating and five have issued a buy rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $39.88.

Simply Good Foods Price Performance

The company's fifty day moving average is $31.86 and its 200 day moving average is $34.38. The firm has a market cap of $2.84 billion, a price-to-earnings ratio of 19.77, a PEG ratio of 2.79 and a beta of 0.59. The company has a quick ratio of 2.46, a current ratio of 3.95 and a debt-to-equity ratio of 0.14.

Simply Good Foods (NASDAQ:SMPL - Get Free Report) last announced its earnings results on Thursday, July 10th. The financial services provider reported $0.51 EPS for the quarter, topping the consensus estimate of $0.50 by $0.01. Simply Good Foods had a net margin of 9.97% and a return on equity of 10.29%. The business had revenue of $380,956 billion during the quarter, compared to analysts' expectations of $381.68 million. During the same quarter in the prior year, the company posted $0.50 earnings per share. The firm's revenue was up 13.8% on a year-over-year basis. On average, equities research analysts predict that The Simply Good Foods Company will post 1.78 EPS for the current year.

Insider Buying and Selling

In other Simply Good Foods news, CEO Geoff E. Tanner bought 6,050 shares of Simply Good Foods stock in a transaction that occurred on Wednesday, July 23rd. The stock was acquired at an average price of $33.11 per share, for a total transaction of $200,315.50. Following the completion of the acquisition, the chief executive officer owned 98,190 shares of the company's stock, valued at $3,251,070.90. This trade represents a 6.57% increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Insiders own 9.35% of the company's stock.

Hedge Funds Weigh In On Simply Good Foods

Several hedge funds and other institutional investors have recently made changes to their positions in SMPL. EverSource Wealth Advisors LLC raised its position in shares of Simply Good Foods by 125.4% in the second quarter. EverSource Wealth Advisors LLC now owns 967 shares of the financial services provider's stock valued at $31,000 after purchasing an additional 538 shares during the period. BI Asset Management Fondsmaeglerselskab A S bought a new position in shares of Simply Good Foods in the first quarter valued at about $54,000. Caitong International Asset Management Co. Ltd bought a new position in shares of Simply Good Foods in the first quarter valued at about $55,000. Quarry LP raised its position in shares of Simply Good Foods by 59.7% in the first quarter. Quarry LP now owns 2,009 shares of the financial services provider's stock valued at $69,000 after purchasing an additional 751 shares during the period. Finally, Russell Investments Group Ltd. raised its position in shares of Simply Good Foods by 2,055.7% in the first quarter. Russell Investments Group Ltd. now owns 3,018 shares of the financial services provider's stock valued at $104,000 after purchasing an additional 2,878 shares during the period. 88.45% of the stock is owned by institutional investors.

About Simply Good Foods

The Simply Good Foods Company operates as a consumer-packaged food and beverage company in North America and internationally. The company develops, markets, and sells snacks and meal replacements. It offers protein bars, ready-to-drink shakes, sweet and salty snacks, cookies, protein chips, and recipes under the Atkins and Quest brand names.

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