Zacks Research Downgrades Simply Good Foods (NASDAQ:SMPL) to Strong Sell

Key Points

• Zacks Research downgraded Simply Good Foods (NASDAQ:SMPL) from "hold" to "strong sell", and multiple brokers have cut price targets, signaling weaker analyst conviction and lowered upside expectations.
• The stock suffered an announced ~18% share drop tied to execution issues in its OWYN expansion, prompting several securities‑law firms to open investigations and raising litigation and investor‑confidence risk.
• In the latest quarter SMPL reported a $0.45 EPS (beats) but missed revenue at $326.0M (down 9.4% YoY), has a negative net margin, and is trading near its 12‑month low with a market cap around $1.03 billion.

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

A number of other research analysts have also commented on the company. Stephens reiterated an "equal weight" rating and issued a $14.00 price objective (down from $24.00) on shares of Simply Good Foods in a research report on Friday, April 10th. TD Cowen reduced their target price on shares of Simply Good Foods from $20.00 to $13.00 and set a "hold" rating on the stock in a research note on Friday, April 10th. BTIG Research started coverage on shares of Simply Good Foods in a research note on Monday. They issued a "neutral" rating on the stock. UBS Group reduced their target price on shares of Simply Good Foods from $16.00 to $13.00 and set a "neutral" rating on the stock in a research note on Friday. Finally, Morgan Stanley reduced their price target on Simply Good Foods from $24.00 to $14.00 and set an "equal weight" rating on the stock in a research report on Friday, April 10th. Five analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $22.64.

Simply Good Foods Stock Up 2.5%

Shares of NASDAQ:SMPL opened at $11.39 on Monday. Simply Good Foods has a 12 month low of $10.21 and a 12 month high of $38.03. The company's 50-day moving average price is $15.19 and its two-hundred day moving average price is $18.73. The company has a quick ratio of 2.87, a current ratio of 5.06 and a debt-to-equity ratio of 0.27. The firm has a market cap of $1.03 billion, a P/E ratio of -9.57 and a beta of 0.33.

Simply Good Foods (NASDAQ:SMPL - Get Free Report) last issued its quarterly earnings data on Thursday, April 9th. The financial services provider reported $0.45 EPS for the quarter, topping analysts' consensus estimates of $0.40 by $0.05. The firm had revenue of $326.01 million for the quarter, compared to analyst estimates of $345.08 million. Simply Good Foods had a negative net margin of 7.46% and a positive return on equity of 9.72%. The company's revenue was down 9.4% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.46 EPS. As a group, research analysts forecast that Simply Good Foods will post 1.78 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the stock. California State Teachers Retirement System lifted its stake in Simply Good Foods by 0.4% in the second quarter. California State Teachers Retirement System now owns 88,477 shares of the financial services provider's stock valued at $2,795,000 after buying an additional 383 shares in the last quarter. NorthCrest Asset Manangement LLC lifted its holdings in shares of Simply Good Foods by 6.1% in the third quarter. NorthCrest Asset Manangement LLC now owns 8,843 shares of the financial services provider's stock valued at $215,000 after purchasing an additional 510 shares in the last quarter. EverSource Wealth Advisors LLC lifted its position 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 worth $31,000 after purchasing an additional 538 shares in the last quarter. AQR Capital Management LLC lifted its position in shares of Simply Good Foods by 3.4% in the first quarter. AQR Capital Management LLC now owns 19,018 shares of the financial services provider's stock worth $656,000 after purchasing an additional 617 shares in the last quarter. Finally, Cerity Partners LLC lifted its position in shares of Simply Good Foods by 4.1% in the fourth quarter. Cerity Partners LLC now owns 18,000 shares of the financial services provider's stock worth $361,000 after purchasing an additional 701 shares in the last quarter. Institutional investors own 88.45% of the company's stock.

Key Stories Impacting Simply Good Foods

Here are the key news stories impacting Simply Good Foods this week:

• Neutral Sentiment: DA Davidson reiterated a "Neutral" rating on SMPL, signaling no change in conviction from that broker. Simply Good Foods' (SMPL) "Neutral" Rating Reiterated at DA Davidson
• Neutral Sentiment: Stephens reiterated an Equal Weight rating, keeping the stock at market‑perform posture rather than upgrading or downgrading. Simply Good Foods' (SMPL) Equal Weight Rating Reiterated at Stephens
• Negative Sentiment: Multiple securities‑law firms have opened investigations into SMPL over disclosures tied to its OWYN expansion and related guidance; firms contacting shareholders include Levi & Korsinsky and several others, raising litigation risk and investor uncertainty. Lost Money on The Simply Good Foods Company (SMPL)? Contact Levi & Korsinsky to Protect Your Rights
• Negative Sentiment: Coverage and press notices highlight an announced ~18% share drop tied to expansion execution issues for OWYN products; BFA Law and other firms point to that decline as the basis for investigations, which could lead to shareholder suits or disclosures that further pressure the stock. SMPL Stock Drop: Simply Good Foods Expansion Issues Lead to 18% Stock Drop - Securities Fraud Investigation to Recover Losses Pending
• Negative Sentiment: Several analysts cut price targets this week (Morgan Stanley to $14, TD Cowen to $13, Stifel to $20), narrowing upside expectations and signaling lowered conviction on near‑term recovery. Morgan Stanley Cuts Simply Good Foods NASDAQ: SMPL Price Target to $14.00 TD Cowen Cuts Simply Good Foods NASDAQ: SMPL Price Target to $13.00 Stifel Nicolaus Cuts Simply Good Foods NASDAQ: SMPL Price Target to $20.00

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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