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

Key Points

• Simply Good Foods (NASDAQ: SMPL) reached a new 52-week low of $28.63 during trading, reflecting concerns about its stock performance, which dropped from a previous close of $29.45.
• Analysts are adjusting their ratings, with Citigroup reducing their price target from $43 to $40 while maintaining a "buy" rating, and overall, the stock maintains a consensus target price of $39.88.
• CEO Geoff E. Tanner increased his stake in the company by acquiring 6,050 shares at an average price of $33.11, reflecting insider confidence in the company's potential.

The Simply Good Foods Company (NASDAQ:SMPL - Get Free Report)'s share price reached a new 52-week low during trading on Tuesday . The stock traded as low as $28.63 and last traded at $28.86, with a volume of 1453278 shares changing hands. The stock had previously closed at $29.45.

Analyst Ratings Changes

A number of brokerages have recently issued reports on SMPL. Citigroup dropped their target price 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. DA Davidson decreased their price objective on Simply Good Foods from $42.00 to $38.00 and set a "neutral" rating on the stock in a research report on Monday, June 9th. UBS Group set a $36.00 price objective on Simply Good Foods and gave the company a "neutral" rating in a research report on Tuesday, July 1st. Sanford C. Bernstein set a $45.00 price objective on Simply Good Foods and gave the company an "outperform" rating in a research report on Friday, July 11th. Finally, Mizuho reduced their price target on Simply Good Foods from $47.00 to $43.00 and set an "outperform" rating on the stock in a research report on Tuesday, July 15th. Four investment analysts have rated the stock with a hold rating and five have issued a buy rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $39.88.

Simply Good Foods Price Performance

The company has a 50 day simple moving average of $31.86 and a 200-day simple moving average of $34.43. The stock has a market cap of $2.86 billion, a price-to-earnings ratio of 19.87, a P/E/G ratio of 2.85 and a beta of 0.59. The company has a current ratio of 3.95, a quick ratio of 2.46 and a debt-to-equity ratio of 0.14.

Simply Good Foods (NASDAQ:SMPL - Get Free Report) last released its 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. The business had revenue of $380,956 billion for the quarter, compared to the consensus estimate of $381.68 million. Simply Good Foods had a return on equity of 10.29% and a net margin of 9.97%. Simply Good Foods's quarterly revenue was up 13.8% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.50 earnings per share. Research analysts expect 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 purchased 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 approximately $3,251,070.90. This trade represents a 6.57% increase in their position. The purchase was disclosed in a filing with the SEC, which is accessible through this link. Insiders own 9.35% of the company's stock.

Institutional Investors Weigh In On Simply Good Foods

A number of institutional investors have recently made changes to their positions in the company. EverSource Wealth Advisors LLC boosted its stake 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 buying an additional 538 shares during the period. BI Asset Management Fondsmaeglerselskab A S acquired a new stake in Simply Good Foods in the first quarter valued at $54,000. Caitong International Asset Management Co. Ltd acquired a new stake in Simply Good Foods in the first quarter valued at $55,000. Quarry LP boosted its position in Simply Good Foods by 59.7% during the first 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 during the last quarter. Finally, Russell Investments Group Ltd. boosted its position in Simply Good Foods by 2,055.7% during the first quarter. Russell Investments Group Ltd. now owns 3,018 shares of the financial services provider's stock valued at $104,000 after acquiring an additional 2,878 shares during the last quarter. 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.