Timothy Allen Matthews, Vice President, Controller, and Chief Accounting Officer of Simply Good Foods Co (NASDAQ:SMPL), recently sold 5,325 shares of the company's common stock. The shares were sold at a weighted average price of $37.3126, amounting to a total transaction value of $198,689. Following this sale, Matthews retains ownership of 17,063 shares in the company. The sale occurred on November 14, 2024, and was disclosed in a filing with the Securities and Exchange Commission.
In other recent news, The Simply Good Foods Group reported a 17.2% rise in net sales in 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 maintained its hold rating on the company, citing uncertainties in the revitalization efforts for the Atkins brand. Stephens reaffirmed its overweight rating, indicating future growth potential despite challenges with the Atkins brand. TD Cowen also maintained a hold rating, acknowledging the company's ambitious plans but noting potential risks. These are recent developments in the company's performance and market analysis.
InvestingPro Insights
In light of Timothy Allen Matthews' recent stock sale, it's worth examining some key financial metrics and insights about Simply Good Foods Co (NASDAQ:SMPL) from InvestingPro.
The company currently boasts a market capitalization of $3.73 billion, reflecting its significant presence in the consumer goods sector. Simply Good Foods has demonstrated solid financial performance, with a revenue of $1.33 billion over the last twelve months as of Q4 2024, representing a growth of 7.13%. This growth trend is even more pronounced in the most recent quarter, with revenue increasing by 17.25%.
InvestingPro Tips highlight that Simply Good Foods operates with a moderate level of debt and maintains liquid assets that exceed short-term obligations. These factors suggest a relatively stable financial position, which may be reassuring to investors in light of the insider sale.
The company's profitability is also noteworthy. With a gross profit margin of 38.67% and an operating income margin of 16.94% over the last twelve months, Simply Good Foods appears to be efficiently converting its revenue into profit. An InvestingPro Tip indicates that the company has been profitable over the last twelve months, and analysts predict continued profitability for the current year.
However, investors should note that Simply Good Foods is trading at a high P/E ratio relative to its near-term earnings growth, with a P/E ratio of 26.91. This valuation metric might suggest that the stock is priced optimistically compared to its immediate growth prospects.
For those interested in a more comprehensive analysis, InvestingPro offers additional insights, with 7 more tips available for Simply Good Foods. These tips could provide valuable context for understanding the company's financial health and market position beyond the scope of this insider transaction.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.