Simply Good Foods (NASDAQ:SMPL) Reaches New 12-Month Low - Should You Sell?

Key Points

• Simply Good Foods (NASDAQ:SMPL) shares hit a new 52-week low of $27.81, marking a significant decline from its previous closing price of $28.45.
• Brokerages have downgraded their price targets for Simply Good Foods, with consensus now at $39.88 and ratings ranging from "Buy" to "Neutral."
• CEO Geoff E. Tanner purchased 6,050 shares at approximately $33.11 each, increasing his ownership stake, which now represents about 9.35% of the company's total stock.

The Simply Good Foods Company (NASDAQ:SMPL - Get Free Report) reached a new 52-week low on Monday . The company traded as low as $27.91 and last traded at $27.81, with a volume of 23163 shares changing hands. The stock had previously closed at $28.45.

Analyst Ratings Changes

A number of analysts recently weighed in on the company. DA Davidson decreased their price objective on Simply Good Foods from $42.00 to $38.00 and set a "neutral" rating for the company in a report on Monday, June 9th. Mizuho decreased their price objective on Simply Good Foods from $47.00 to $43.00 and set an "outperform" rating for the company in a report on Tuesday, July 15th. UBS Group set a $36.00 price objective on Simply Good Foods and gave the company a "neutral" rating in a report on Tuesday, July 1st. Wall Street Zen downgraded Simply Good Foods from a "buy" rating to a "hold" rating in a report on Saturday, June 21st. Finally, Citigroup decreased their price objective on Simply Good Foods from $43.00 to $40.00 and set a "buy" rating for the company in a report on Wednesday, June 18th. Five research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $39.88.

Simply Good Foods Stock Performance

The company has a debt-to-equity ratio of 0.14, a quick ratio of 2.46 and a current ratio of 3.95. The stock has a fifty day simple moving average of $30.26 and a two-hundred day simple moving average of $33.19. The stock has a market capitalization of $2.73 billion, a price-to-earnings ratio of 18.98, a P/E/G ratio of 2.56 and a beta of 0.59.

Simply Good Foods (NASDAQ:SMPL - Get Free Report) last issued its quarterly earnings results on Thursday, July 10th. The financial services provider reported $0.51 earnings per share for the quarter, hitting analysts' consensus estimates of $0.51. Simply Good Foods had a return on equity of 10.29% and a net margin of 9.97%.The firm had revenue of $380.96 million during the quarter, compared to the consensus estimate of $381.68 million. During the same period last year, the business posted $0.50 EPS. The business's revenue was up 13.8% compared to the same quarter last year. Analysts forecast that The Simply Good Foods Company will post 1.78 earnings per share for the current fiscal year.

Insider Activity

In related news, CEO Geoff E. Tanner acquired 6,050 shares of the business's stock in a transaction dated Wednesday, July 23rd. The shares were bought at an average price of $33.11 per share, with a total value of $200,315.50. Following the transaction, the chief executive officer directly owned 98,190 shares of the company's stock, valued at $3,251,070.90. This trade represents a 6.57% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 9.35% of the stock is owned by company insiders.

Hedge Funds Weigh In On Simply Good Foods

Institutional investors and hedge funds have recently made changes to their positions in the stock. EverSource Wealth Advisors LLC boosted its position in shares of Simply Good Foods by 125.4% during 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 in the last quarter. BI Asset Management Fondsmaeglerselskab A S bought a new position in shares of Simply Good Foods during the 1st quarter worth about $54,000. Caitong International Asset Management Co. Ltd bought a new position in shares of Simply Good Foods during the 1st quarter worth about $55,000. Quarry LP boosted its position in shares of Simply Good Foods by 59.7% during the 1st quarter. Quarry LP now owns 2,009 shares of the financial services provider's stock worth $69,000 after purchasing an additional 751 shares in the last quarter. Finally, State of Wyoming bought a new position in shares of Simply Good Foods during the 2nd quarter worth about $87,000. Institutional investors own 88.45% of the company's stock.

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.