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

Key Points

• Simply Good Foods shares dropped to a new 52-week low of $27.00, indicating potential challenges for the company while trading activity was recorded at over 15,000 shares.
• Despite experiencing a decline, analysts maintain a consensus rating of "Moderate Buy" with an average price target of $39.88, although several firms have lowered their price targets recently.
• CEO Geoff E. Tanner purchased 6,050 shares at an average price of $33.11, signaling confidence in the company's future prospects as his ownership stake increased by 6.57%.

The Simply Good Foods Company (NASDAQ:SMPL - Get Free Report) shares hit a new 52-week low during mid-day trading on Monday . The stock traded as low as $27.00 and last traded at $27.04, with a volume of 15366 shares trading hands. The stock had previously closed at $27.14.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on SMPL. Sanford C. Bernstein set a $45.00 target price on shares of Simply Good Foods and gave the company an "outperform" rating in a research note on Friday, July 11th. Wall Street Zen downgraded Simply Good Foods from a "buy" rating to a "hold" rating in a research report on Saturday, June 21st. Stifel Nicolaus reduced their price objective on Simply Good Foods from $40.00 to $38.00 and set a "buy" rating for the company in a research report on Friday, June 27th. Mizuho reduced their price objective on Simply Good Foods from $47.00 to $43.00 and set an "outperform" rating for the company in a research report on Tuesday, July 15th. Finally, DA Davidson reduced their price target on Simply Good Foods from $42.00 to $38.00 and set a "neutral" rating for the company in a research report on Monday, June 9th. Five research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $39.88.

Simply Good Foods Stock Down 1.9%

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 company has a market capitalization of $2.65 billion, a price-to-earnings ratio of 18.43, a P/E/G ratio of 2.45 and a beta of 0.59. The stock's fifty day simple moving average is $29.83 and its two-hundred day simple moving average is $32.89.

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, meeting analysts' consensus estimates of $0.51. Simply Good Foods had a net margin of 9.97% and a return on equity of 10.29%. The company had revenue of $380.96 million during the quarter, compared to the consensus estimate of $381.68 million. During the same period in the prior year, the company earned $0.50 EPS. Simply Good Foods's revenue was up 13.8% on a year-over-year basis. On average, sell-side analysts anticipate that The Simply Good Foods Company will post 1.78 EPS for the current year.

Insider Activity at Simply Good Foods

In related news, CEO Geoff E. Tanner acquired 6,050 shares of the business's stock in a transaction dated Wednesday, July 23rd. The stock was bought at an average price of $33.11 per share, for a total transaction of $200,315.50. Following the transaction, the chief executive officer owned 98,190 shares of the company's stock, valued at approximately $3,251,070.90. The trade was a 6.57% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Company insiders own 9.35% of the company's stock.

Institutional Trading of Simply Good Foods

A number of hedge funds have recently bought and sold shares of the company. Yousif Capital Management LLC lifted its stake in Simply Good Foods by 1.0% during the second quarter. Yousif Capital Management LLC now owns 34,173 shares of the financial services provider's stock valued at $1,080,000 after buying an additional 341 shares in the last quarter. California State Teachers Retirement System lifted its position in shares of Simply Good Foods by 0.4% in 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 acquiring an additional 383 shares in the last quarter. Xponance Inc. lifted its position in shares of Simply Good Foods by 5.8% in the 1st quarter. Xponance Inc. now owns 7,325 shares of the financial services provider's stock valued at $253,000 after acquiring an additional 402 shares in the last quarter. Alliance Wealth Advisors LLC UT lifted its holdings in shares of Simply Good Foods by 3.1% in the first quarter. Alliance Wealth Advisors LLC UT now owns 16,212 shares of the financial services provider's stock valued at $559,000 after purchasing an additional 484 shares in the last quarter. Finally, Van Hulzen Asset Management LLC lifted its holdings in shares of Simply Good Foods by 1.4% in the first quarter. Van Hulzen Asset Management LLC now owns 36,886 shares of the financial services provider's stock valued at $1,272,000 after purchasing an additional 522 shares in the last quarter. 88.45% of the stock is owned by hedge funds and other 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.