Brian K. Ratzan, a director at Simply Good Foods Co (NASDAQ:SMPL), has sold 50,000 shares of the company's common stock. The shares were sold at a weighted average price of $37.38, resulting in a total transaction value of approximately $1.87 million. The sales were executed in multiple transactions at prices ranging from $37.25 to $37.74. Following this sale, Ratzan holds 2,049,387 shares in the company.
In other recent news, The Simply Good Foods Company (NASDAQ:SMPL) 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 reiterated its Hold rating on The Simply Goods Group, maintaining a $36.00 price target. 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 also 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.
In other company news, Simply Good Foods is repositioning 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
As Brian K. Ratzan reduces his stake in Simply Good Foods Co (NASDAQ:SMPL), investors might be curious about the company's current financial standing and future prospects. According to InvestingPro data, SMPL has a market capitalization of $3.73 billion and is trading at a P/E ratio of 26.91, which is relatively high compared to its near-term earnings growth. This valuation metric aligns with an InvestingPro Tip indicating that the company is trading at a high P/E ratio relative to its expected short-term earnings expansion.
Despite the director's recent sale, there are positive indicators for SMPL. The company's revenue for the last twelve months stands at $1.33 billion, with a notable quarterly revenue growth of 17.25% in the most recent quarter. Additionally, SMPL boasts a healthy gross profit margin of 38.67%, suggesting efficient cost management.
InvestingPro Tips also reveal that SMPL operates with a moderate level of debt and has liquid assets exceeding short-term obligations, which could provide financial flexibility. Furthermore, analysts predict the company will remain profitable this year, continuing its trend of profitability over the last twelve months.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for Simply Good Foods Co, providing a deeper understanding of the company's financial health and market position. These insights could be particularly valuable in light of the recent insider selling activity.
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