Fresh Del Monte Produce (NYSE:FDP) Cut to “Hold” at StockNews.com

StockNews.com downgraded shares of Fresh Del Monte Produce (NYSE:FDP) from a buy rating to a hold rating in a report issued on Friday morning.

Fresh Del Monte Produce Trading Up 2.4 %

FDP opened at $31.23 on Friday. Fresh Del Monte Produce has a twelve month low of $21.23 and a twelve month high of $35.27. The company has a fifty day moving average of $31.07 and a 200-day moving average of $31.15. The stock has a market cap of $1.50 billion, a PE ratio of 94.64 and a beta of 0.33. The company has a quick ratio of 1.04, a current ratio of 2.09 and a debt-to-equity ratio of 0.14.

Fresh Del Monte Produce (NYSE:FDP) last issued its quarterly earnings results on Monday, February 24th. The company reported $0.26 earnings per share for the quarter, missing analysts’ consensus estimates of $0.42 by ($0.16). Fresh Del Monte Produce had a return on equity of 5.91% and a net margin of 0.36%. The business had revenue of $1.01 billion for the quarter, compared to analyst estimates of $1.14 billion. During the same quarter in the previous year, the business posted $0.25 earnings per share. The business’s revenue was up .5% on a year-over-year basis.

Fresh Del Monte Produce Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, March 28th. Shareholders of record on Monday, March 10th will be issued a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a dividend yield of 3.84%. This is a boost from Fresh Del Monte Produce’s previous quarterly dividend of $0.25. The ex-dividend date of this dividend is Monday, March 10th. Fresh Del Monte Produce’s dividend payout ratio is presently 40.40%.

Fresh Del Monte Produce declared that its board has initiated a share buyback plan on Monday, February 24th that authorizes the company to buyback $150.00 million in outstanding shares. This buyback authorization authorizes the company to buy up to 10.4% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s leadership believes its shares are undervalued.

Insider Buying and Selling

In other news, SVP Ziad Nabulsi sold 1,725 shares of the company’s stock in a transaction that occurred on Monday, March 3rd. The stock was sold at an average price of $30.42, for a total transaction of $52,474.50. Following the transaction, the senior vice president now directly owns 11,498 shares of the company’s stock, valued at $349,769.16. This represents a 13.05 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, COO Mohammed Abbas sold 5,064 shares of the stock in a transaction on Monday, March 3rd. The stock was sold at an average price of $30.42, for a total value of $154,046.88. Following the completion of the transaction, the chief operating officer now owns 45,560 shares in the company, valued at approximately $1,385,935.20. This represents a 10.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 9,321 shares of company stock valued at $283,545 over the last ninety days. 30.10% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Fresh Del Monte Produce

Hedge funds and other institutional investors have recently made changes to their positions in the business. Parvin Asset Management LLC acquired a new position in Fresh Del Monte Produce during the 4th quarter valued at about $30,000. Sterling Capital Management LLC lifted its holdings in shares of Fresh Del Monte Produce by 795.0% in the fourth quarter. Sterling Capital Management LLC now owns 1,083 shares of the company’s stock valued at $36,000 after purchasing an additional 962 shares in the last quarter. McIlrath & Eck LLC purchased a new position in shares of Fresh Del Monte Produce during the fourth quarter valued at approximately $48,000. Sherman Asset Management Inc. bought a new stake in Fresh Del Monte Produce during the fourth quarter worth $54,000. Finally, State of Wyoming purchased a new stake in Fresh Del Monte Produce in the 4th quarter valued at $54,000. 64.83% of the stock is owned by institutional investors.

About Fresh Del Monte Produce

Fresh Del Monte Produce Inc, through its subsidiaries, produces, markets, and distributes fresh and fresh-cut fruits and vegetables in North America, Central America, South America, Europe, the Middle East, Africa, Asia, and internationally. It operates through three segments: Fresh and Value-Added Products, Banana, and Other Products and Services.