Simply Good Foods (NASDAQ:SMPL) Reaches New 1-Year Low - Should You 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) reached a new 52-week low 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

A number of analysts recently issued reports on the company. Citigroup lowered their price target on Simply Good Foods from $43.00 to $40.00 and set a "buy" rating for the company in a research report on Wednesday, June 18th. 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. UBS Group set a $36.00 price target on shares of Simply Good Foods and gave the stock a "neutral" rating in a research note on Tuesday, July 1st. Wall Street Zen lowered shares of Simply Good Foods from a "buy" rating to a "hold" rating in a research report on Saturday, June 21st. Finally, Stifel Nicolaus decreased their price objective 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. Five research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $39.88.

Simply Good Foods Trading Up 2.7%

The firm has a market capitalization of $3.03 billion, a PE ratio of 21.10, a price-to-earnings-growth ratio of 2.88 and a beta of 0.59. The stock's 50-day moving average price is $31.43 and its 200 day moving average price is $34.13. The company has a debt-to-equity ratio of 0.14, a current ratio of 3.95 and a quick ratio of 2.46.

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

Insider Activity

In other news, CEO Geoff E. Tanner purchased 6,050 shares of the business's stock in a transaction dated Wednesday, July 23rd. The shares were purchased at an average price of $33.11 per share, for a total transaction of $200,315.50. Following the completion of the purchase, the chief executive officer owned 98,190 shares in the company, valued at approximately $3,251,070.90. This represents a 6.57% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this link. Insiders own 9.35% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. EverSource Wealth Advisors LLC lifted its position in shares of Simply Good Foods by 125.4% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 967 shares of the financial services provider's stock worth $31,000 after purchasing an additional 538 shares during the period. BI Asset Management Fondsmaeglerselskab A S purchased a new stake in Simply Good Foods during the first quarter worth $54,000. Caitong International Asset Management Co. Ltd purchased a new stake in Simply Good Foods during the first quarter worth $55,000. Quarry LP boosted its position in Simply Good Foods by 59.7% during the 1st quarter. Quarry LP now owns 2,009 shares of the financial services provider's stock valued at $69,000 after acquiring an additional 751 shares in the last quarter. Finally, State of Wyoming purchased a new position in shares of Simply Good Foods in the 2nd quarter valued at $87,000. 88.45% of the stock is currently owned by institutional investors.

Simply Good Foods Company Profile

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.