Simply Good Foods (NASDAQ:SMPL) Rating Increased to Hold at Zacks Research

Key Points

• Zacks Research upgraded Simply Good Foods from a “strong sell” to a “hold” rating, while the broader analyst view remains cautious with a consensus Hold and an average price target of $19.82.
• The stock was up 4.3% and opened at $12.44; it remains well below its 52-week high of $34.32 and sits near its 50-day moving average of $12.36.
• In its latest quarter, Simply Good Foods beat EPS estimates at $0.45 vs. $0.40 expected, but revenue missed at $326.01 million, down 9.4% year over year.

Simply Good Foods (NASDAQ:SMPL - Get Free Report) was upgraded by stock analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a research report issued to clients and investors on Monday,Zacks.com reports.

Several other equities analysts have also commented on SMPL. Mizuho set a $19.00 price objective on shares of Simply Good Foods in a research report on Monday, May 4th. Stephens reiterated an "equal weight" rating and set a $14.00 price objective (down from $24.00) on shares of Simply Good Foods in a research report on Friday, April 10th. DA Davidson reiterated a "neutral" rating and set a $39.00 price objective on shares of Simply Good Foods in a research report on Friday, April 10th. Deutsche Bank Aktiengesellschaft lowered their price objective on shares of Simply Good Foods from $16.00 to $13.00 and set a "hold" rating for the company in a research report on Friday, April 10th. Finally, Jefferies Financial Group upgraded shares of Simply Good Foods from a "hold" rating to a "buy" rating and lowered their target price for the stock from $23.00 to $22.00 in a report on Monday, March 16th. Four equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Simply Good Foods has a consensus rating of "Hold" and an average price target of $19.82.

Simply Good Foods Stock Up 4.3%

Shares of SMPL opened at $12.44 on Monday. The stock has a market capitalization of $1.13 billion, a price-to-earnings ratio of -10.45 and a beta of 0.17. Simply Good Foods has a 1 year low of $10.21 and a 1 year high of $34.32. The business's 50 day simple moving average is $12.36 and its 200-day simple moving average is $16.07. The company has a debt-to-equity ratio of 0.27, a current ratio of 5.06 and a quick ratio of 2.87.

Simply Good Foods (NASDAQ:SMPL - Get Free Report) last released its quarterly earnings data on Thursday, April 9th. The financial services provider reported $0.45 EPS for the quarter, beating the consensus estimate of $0.40 by $0.05. Simply Good Foods had a negative net margin of 7.46% and a positive return on equity of 9.72%. The business had revenue of $326.01 million during the quarter, compared to analyst estimates of $345.08 million. During the same quarter last year, the business earned $0.46 earnings per share. Simply Good Foods's quarterly revenue was down 9.4% compared to the same quarter last year. As a group, equities analysts expect that Simply Good Foods will post 1.54 earnings per share for the current fiscal year.

Insider Activity

In related news, Director Clayton C. Daley, Jr. acquired 10,000 shares of the stock in a transaction on Thursday, May 14th. The stock was bought at an average cost of $11.78 per share, with a total value of $117,800.00. Following the transaction, the director directly owned 111,743 shares in the company, valued at approximately $1,316,332.54. This represents a 9.83% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, Director James M. Kilts acquired 80,000 shares of the stock in a transaction on Thursday, April 23rd. The stock was bought at an average cost of $12.39 per share, with a total value of $991,200.00. Following the completion of the transaction, the director owned 172,854 shares in the company, valued at $2,141,661.06. This trade represents a 86.16% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 8.76% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Simply Good Foods

Several large investors have recently added to or reduced their stakes in the stock. California State Teachers Retirement System increased its position in Simply Good Foods by 0.4% during the 2nd quarter. California State Teachers Retirement System now owns 88,477 shares of the financial services provider's stock valued at $2,795,000 after purchasing an additional 383 shares during the period. EverSource Wealth Advisors LLC boosted its position in Simply Good Foods by 125.4% during 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 in the last quarter. AQR Capital Management LLC boosted its position in Simply Good Foods by 3.4% during the first quarter. AQR Capital Management LLC now owns 19,018 shares of the financial services provider's stock valued at $656,000 after purchasing an additional 617 shares in the last quarter. Cerity Partners LLC boosted its position in Simply Good Foods by 4.1% during the fourth quarter. Cerity Partners LLC now owns 18,000 shares of the financial services provider's stock valued at $361,000 after purchasing an additional 701 shares in the last quarter. Finally, Gamco Investors INC. ET AL boosted its position in Simply Good Foods by 3.4% during the second quarter. Gamco Investors INC. ET AL now owns 23,120 shares of the financial services provider's stock valued at $730,000 after purchasing an additional 750 shares in the last quarter. 88.45% of the stock is owned by hedge funds and other institutional investors.

About Simply Good Foods

Simply Good Foods Co NASDAQ: SMPL is a North American consumer packaged foods company specializing in better-for-you nutrition products. The company’s portfolio centers on two well-established brands, Atkins and Quest, which offer a range of low-carbohydrate, high-protein bars, powders, shakes, and snacks. Simply Good Foods aims to support consumers’ health and wellness goals by delivering convenient, nutrient-dense options without added sugars or artificial sweeteners.

Under the Atkins brand, the company produces meal replacements, snack bars, and ready-to-drink shakes designed for low-carb dieters.

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