Brian K. Ratzan, a director at Simply Good Foods Co (NASDAQ:SMPL), has sold 66,483 shares of the company’s common stock. The shares were sold at a weighted average price of $36.28, amounting to a total transaction value of approximately $2.41 million. Following this sale, Ratzan holds 2,099,387 shares of Simply Good Foods. The transactions were executed on November 11, 2024, with shares being sold at prices ranging between $36.25 and $36.37.
In other recent news, The Simply Good Foods Company (NASDAQ:) reported a 17.2% rise in net sales for the fourth quarter, largely due to the acquisition of OWYN. The company’s North America Quest net sales increased by 5%, while Atkins saw a 5% decline. Adjusted EBITDA for the quarter grew by 15% to $77.5 million. For the fiscal year 2025, the company projects a net sales growth of 4% to 6%, with adjusted EBITDA growth slightly exceeding sales growth.
Jefferies has maintained its hold rating on The Simply Goods Group, with a steady target price of $36. The firm’s analysis revealed new details regarding the OWYN acquisition, potential synergies, e-commerce growth, and outcomes from the Atkins brand impairment tests. Stephens reaffirmed its Overweight rating on Simply Good Foods, maintaining a price target of $42.00, suggesting future growth potential despite challenges with the Atkins brand.
The company’s recent developments also include the repositioning of Atkins to align with consumer preferences for sustainability and relevancy. The Quest brand continues to be a key growth driver for the company, and OWYN showed impressive results with point-of-sale growth of around 80%. Despite some challenges, Simply Good Foods remains optimistic about its ability to leverage consumer trends favoring convenience, protein-rich, low-calorie, and low-sugar products.
InvestingPro Insights
To provide additional context to Brian K. Ratzan’s recent stock sale, let’s examine some key financial metrics and insights from InvestingPro for Simply Good Foods Co (NASDAQ:SMPL).
As of the most recent data, Simply Good Foods has a market capitalization of $3.68 billion, positioning it as a mid-cap company in the consumer goods sector. The company’s P/E ratio stands at 26.39, which is relatively high compared to its near-term earnings growth, as highlighted by one of the InvestingPro Tips. This valuation metric suggests that investors are pricing in expectations for future growth.
Speaking of growth, Simply Good Foods has demonstrated solid revenue performance, with a 7.13% increase in revenue over the last twelve months, reaching $1.33 billion. More impressively, the company’s quarterly revenue growth was 17.25%, indicating accelerating sales momentum. This growth trajectory aligns with the InvestingPro Tip that analysts predict the company will be profitable this year.
Another positive aspect of Simply Good Foods’ financial health is its liquidity position. An InvestingPro Tip notes that the company’s liquid assets exceed its short-term obligations, which is a sign of financial stability. This strong balance sheet is further supported by the tip indicating that Simply Good Foods operates with a moderate level of debt, potentially giving the company flexibility for future investments or to weather economic uncertainties.
It’s worth noting that while the company has been profitable over the last twelve months and has delivered a high return over the last decade, it does not pay a dividend to shareholders. This suggests that Simply Good Foods may be reinvesting its profits to fuel further growth rather than distributing them to investors.
For those interested in a more comprehensive analysis, InvestingPro offers additional tips and insights beyond what we’ve covered here. In fact, there are 5 more InvestingPro Tips available for Simply Good Foods, which could provide valuable information for investors considering the stock in light of the recent insider sale.
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