SunOpta (NASDAQ:STKL) Inc., the global company focused on plant-based foods and beverages, saw a significant rise in its shares on Friday, following its strategic decision to exit the frozen fruit segment. The company's shares rose by 26% to $3.59 in the US and 28% to C$4.98 on the Toronto Stock Exchange.
The frozen fruit segment was sold to Quebec-based Nature's Touch for $141 million. The deal included facilities in Edwardsville, Kansas, and Jacona, Mexico, along with a substantial inventory of frozen fruit. This move is part of SunOpta's strategy to concentrate more on healthier snacks and reduce its debt. According to InvestingPro Tips, the company operates with a significant debt burden, but the sale of the frozen fruit segment should help alleviate this issue.
In addition to this strategic shift, SunOpta also announced changes within its leadership team. Greg Gaba has been appointed as the new Chief Financial Officer (CFO), succeeding Scott Huckins.
On the financial front, the company projected a third-quarter revenue of approximately $152 million from its continuing operations. The revenue forecast indicates a potential positive impact of their recent strategic decisions on their financial performance. However, it's worth noting that the company's recent financial data from InvestingPro shows a revenue of 882.65M USD for the last twelve months ending Q2 2023, with a quarterly revenue growth of -14.67%.
Despite the recent strategic decisions, SunOpta's stock is in oversold territory, as suggested by its Relative Strength Index (RSI), another insight from InvestingPro Tips. The company's stock price has fallen significantly over the past year, with a total return of -71.07% as per InvestingPro Data.
SunOpta's market cap stands at 426.65M USD, with a negative P/E ratio of -12.62, indicating that the company has not been profitable over the last twelve months. However, analysts predict the company will be profitable this year, according to InvestingPro Tips.
For those interested in more insights like these, there are 15 tips available for SunOpta on InvestingPro. This includes tips on dividend payments, net income growth, stock volatility, and more. These tips can provide valuable insights for both current shareholders and potential investors.
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