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Simply Good Foods chief legal officer sells $774,183 in stock

Published 11/13/2024, 09:30 AM
Updated 11/13/2024, 09:32 AM
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Timothy Richard Kraft, Chief Legal Officer and Secretary of Simply Good Foods Co (NASDAQ:SMPL), reported a significant stock sale according to a recent SEC filing. On November 11, Kraft sold 21,209 shares of common stock, amounting to approximately $774,183, with a weighted average price of $36.5026 per share.

In addition to the sale, Kraft also reported acquiring 10,916 shares of common stock on November 8, through time-based and performance-based restricted stock units, with no cash exchanged for these acquisitions. Furthermore, 1,167 shares were withheld by the company to cover tax obligations upon the vesting of restricted stock units, valued at approximately $42,280.

Following these transactions, Kraft holds 40,068 shares directly.

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 maintained its Hold rating on Simply Good Foods, acknowledging the company's ambitious plans for the fiscal year 2025 but noting the risks involved. Similarly, TD Cowen maintained a Hold rating, while Stephens reaffirmed its Overweight rating on the company. Despite challenges with the Atkins brand, 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 Timothy Richard Kraft's recent stock transactions, let's examine some key financial metrics and insights for Simply Good Foods Co (NASDAQ:SMPL).

According to InvestingPro 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 noted in one of the InvestingPro Tips.

Despite the high valuation, Simply Good Foods has demonstrated solid financial performance. The company's revenue for the last twelve months as of Q4 2024 was $1.33 billion, with a notable revenue growth of 7.13% over the same period. More impressively, the quarterly revenue growth for Q4 2024 was 17.25%, indicating accelerating sales momentum.

Profitability metrics are also strong, with a gross profit margin of 38.67% and an operating income margin of 16.94% for the last twelve months. This aligns with an InvestingPro Tip stating that the company has been profitable over the last twelve months and is expected to remain profitable this year, according to analyst predictions.

Another InvestingPro Tip highlights that Simply Good Foods operates with a moderate level of debt, which is a positive factor for financial stability. This is particularly relevant given that the company's liquid assets exceed its short-term obligations, providing a cushion for operational flexibility and potential growth initiatives.

It's worth noting that while the company has shown strong performance, it does not pay a dividend to shareholders, as pointed out by one of the InvestingPro Tips. This suggests that Simply Good Foods may be reinvesting its profits into the business for future growth rather than distributing them to shareholders.

For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights beyond those mentioned here. In fact, there are 5 more InvestingPro Tips available for Simply Good Foods, which could provide valuable information for those considering an investment in the company.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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