Simply Good Foods (NASDAQ:SMPL) Stock Price Up 9.2% - Here's What Happened

Key Points

• Simply Good Foods shares rose 9.2% to about $11.11 in midday trading, though volume was 86% below the average session level.
• Analyst sentiment remains cautious: the stock has a consensus “Hold” rating and an average price target of $15.20, with several firms recently lowering targets.
• The company exceeded quarterly expectations, reporting EPS of $0.42 versus the $0.35 consensus and revenue of $356.98 million, although revenue declined 6.3% year over year and net margin remained negative.

The Simply Good Foods Company (NASDAQ:SMPL - Get Free Report)'s share price traded up 9.2% during mid-day trading on Monday . The company traded as high as $10.97 and last traded at $11.1130. 357,376 shares changed hands during mid-day trading, a decline of 86% from the average session volume of 2,570,548 shares. The stock had previously closed at $10.18.

Analysts Set New Price Targets

A number of research analysts have recently issued reports on SMPL shares. BTIG Research initiated coverage on shares of Simply Good Foods in a research report on Monday, April 13th. They issued a "neutral" rating on the stock. Sanford C. Bernstein downgraded Simply Good Foods from an "outperform" rating to a "market perform" rating and dropped their price objective for the company from $17.00 to $12.00 in a research note on Wednesday, June 3rd. UBS Group set a $15.00 target price on Simply Good Foods in a report on Friday, July 10th. Stephens restated an "equal weight" rating and issued a $14.00 price target (down from $24.00) on shares of Simply Good Foods in a report on Friday, April 10th. Finally, Deutsche Bank Aktiengesellschaft reissued a "hold" rating and set a $14.00 price objective on shares of Simply Good Foods in a report on Friday, July 10th. Three analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $15.20.

Simply Good Foods Trading Up 10.6%

The stock's 50-day moving average price is $12.03 and its 200 day moving average price is $14.08. The company has a debt-to-equity ratio of 0.28, a current ratio of 4.80 and a quick ratio of 3.10. The firm has a market capitalization of $996.07 million, a PE ratio of -5.19 and a beta of 0.13.

Simply Good Foods (NASDAQ:SMPL - Get Free Report) last announced its quarterly earnings data on Thursday, July 9th. The financial services provider reported $0.42 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.35 by $0.07. The company had revenue of $356.98 million for the quarter, compared to analysts' expectations of $332.99 million. Simply Good Foods had a positive return on equity of 9.34% and a negative net margin of 14.28%.Simply Good Foods's revenue was down 6.3% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.51 earnings per share. On average, sell-side analysts expect that The Simply Good Foods Company will post 1.54 EPS for the current fiscal year.

Insider Activity at Simply Good Foods

In other news, Director Clayton C. Daley, Jr. acquired 10,000 shares of the firm's stock in a transaction that occurred on Thursday, May 14th. The stock was purchased at an average cost of $11.78 per share, for a total transaction of $117,800.00. Following the completion of the acquisition, the director directly owned 111,743 shares of the company's stock, valued at $1,316,332.54. The trade was a 9.83% increase in their position. The acquisition was disclosed in a filing with the SEC, which can be accessed through the SEC website. Corporate insiders own 8.76% of the company's stock.

Institutional Investors Weigh In On Simply Good Foods

Several institutional investors have recently bought and sold shares of the company. Vanguard Group Inc. raised its position in shares of Simply Good Foods by 2.4% in the fourth quarter. Vanguard Group Inc. now owns 10,631,429 shares of the financial services provider's stock valued at $213,479,000 after buying an additional 249,405 shares during the last quarter. Pacer Advisors Inc. purchased a new position in shares of Simply Good Foods during the 4th quarter worth $6,499,000. New Age Alpha Advisors LLC boosted its position in shares of Simply Good Foods by 2,413.6% during the 4th quarter. New Age Alpha Advisors LLC now owns 173,414 shares of the financial services provider's stock valued at $3,482,000 after acquiring an additional 166,515 shares during the last quarter. Tudor Investment Corp ET AL grew its holdings in shares of Simply Good Foods by 468.7% in the third quarter. Tudor Investment Corp ET AL now owns 208,385 shares of the financial services provider's stock valued at $5,172,000 after purchasing an additional 171,745 shares during the period. Finally, Bessemer Group Inc. raised its stake in Simply Good Foods by 230.7% during the fourth quarter. Bessemer Group Inc. now owns 690,863 shares of the financial services provider's stock worth $13,873,000 after purchasing an additional 481,952 shares during the period. 88.45% of the stock is currently owned by institutional investors and hedge funds.

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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