Simply Good Foods director Brian Ratzan sells $2.41 million in stock By Investing.com

Brian K. Ratzan, Director of Simply Good Foods Co (NASDAQ:SMPL), sold 66,483 shares of the company’s common stock. The shares were sold at a weighted average price of $36.28, for a total transaction of approximately $2.41 million. Following the sale, Razan will own 2,099,387 shares of Simply Good Foods. The transaction was executed on November 11, 2024, and the shares were sold at prices ranging from $36.25 to $36.37.

In other recent news, The Simply Good Foods Company (NASDAQ:) reported a 17.2% increase in net sales for the quarter, primarily due to the acquisition of OWYN. The company’s North American Quest net sales increased 5%, while Atkins’ net sales decreased 5%. Adjusted EBITDA for the quarter increased 15% to $77.5 million. For fiscal 2025, the company expects net sales to increase between 4% and 6%, with adjusted EBITDA growth slightly outpacing sales growth.

Jefferies maintained its rating on Simply Goods Group with a stable price target of $36. The company’s analysis reveals new details about the OWYN acquisition, potential synergies, e-commerce growth and the results of the Atkins brand impairment test. Stevens reaffirmed his Overweight rating on Simply Good Foods and maintained a $42.00 price target, suggesting future growth potential despite the Atkins brand’s challenges.

The company’s recent developments include repositioning Atkins to align with consumer preferences for sustainability and relevance. The Quest brand continues to be a key growth driver for the company, and OWYN delivered impressive results with approximately 80% growth in POS. Despite some challenges, Simply Good Foods remains optimistic that it can capitalize on consumer trends favoring convenience, high protein, low calorie and low sugar products.

Investment Pro Insights

Check out some key financial metrics and insights from InvestingPro for Simply Good Foods Company (NASDAQ:SMPL) to provide more context on Brian K. Ratzan’s recent stock sale. Let’s.

At the latest data, Simply Good Foods Inc. has a market capitalization of $3.68 billion, which ranks it as a mid-cap company in the Consumer Goods sector. As highlighted in one of InvestingPro’s tips, the company’s P/E ratio is 26.39, which is relatively high compared to its short-term earnings growth. This valuation metric suggests that investors are pricing in expectations for future growth.

Speaking of growth, Simply Good Foods has shown solid revenue performance, with revenue increasing 7.13% to $1.33 billion over the past 12 months. More impressively, the company’s quarterly revenue growth rate was 17.25%, indicating that its revenue momentum is accelerating. This growth trajectory is consistent with InvestingPro’s tip that analysts expect the company to be profitable this year.

Another positive aspect of Simply Good Foods’ financial health is its liquidity position. InvestingPro Tip notes that the company’s current assets exceed short-term debt, which is a sign of financial stability. This strong balance sheet means Simply Good Foods operates with moderate debt, which may give the company flexibility to make future investments and weather economic uncertainty. This is further supported by hints that this is the case.

It’s worth noting that while the company has been profitable in the past 12 months and has delivered strong returns over the past 10 years, it hasn’t paid any dividends to shareholders. This suggests that Simply Good Foods may be reinvesting 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 those covered here. In fact, there are 5 more InvestingPro Tips available for Simply Good Foods that could provide valuable information for investors considering the stock in light of recent insider sales.

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