Simply Good Foods (NASDAQ:SMPL) Cut to Strong Sell at Zacks Research

Zacks Research cut shares of Simply Good Foods (NASDAQ:SMPL) from a hold rating to a strong sell rating in a research note published on Monday,Zacks.com reports.

A number of other research firms have also weighed in on SMPL. Morgan Stanley reduced their target price on shares of Simply Good Foods from $24.00 to $14.00 and set an “equal weight” rating on the stock in a report on Friday, April 10th. UBS Group reduced their target price on shares of Simply Good Foods from $16.00 to $13.00 and set a “neutral” rating on the stock in a report on Friday, April 10th. Sanford C. Bernstein reissued an “outperform” rating on shares of Simply Good Foods in a report on Friday, January 9th. BTIG Research initiated coverage on shares of Simply Good Foods in a report on Monday. They set a “neutral” rating on the stock. Finally, Jefferies Financial Group raised shares of Simply Good Foods from a “hold” rating to a “buy” rating and reduced their target price for the stock from $23.00 to $22.00 in a report on Monday, March 16th. Five investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, Simply Good Foods currently has a consensus rating of “Hold” and a consensus target price of $22.64.

Simply Good Foods Price Performance

SMPL stock opened at $11.72 on Monday. The company has a 50 day simple moving average of $15.07 and a 200 day simple moving average of $18.69. The stock has a market cap of $1.06 billion, a price-to-earnings ratio of -9.85 and a beta of 0.33. Simply Good Foods has a 1 year low of $10.21 and a 1 year high of $38.03. The company has a debt-to-equity ratio of 0.27, a current ratio of 5.06 and a quick ratio of 2.87.

Simply Good Foods (NASDAQ:SMPL) last released its quarterly earnings data on Thursday, April 9th. The financial services provider reported $0.45 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.40 by $0.05. The business had revenue of $326.01 million during the quarter, compared to analysts’ expectations of $345.08 million. Simply Good Foods had a negative net margin of 7.46% and a positive return on equity of 9.72%. The firm’s quarterly revenue was down 9.4% compared to the same quarter last year. During the same period in the prior year, the company earned $0.46 EPS. Research analysts anticipate that Simply Good Foods will post 1.78 EPS for the current fiscal year.

Institutional Investors Weigh In On Simply Good Foods

A number of institutional investors have recently modified their holdings of the company. Hsbc Holdings PLC bought a new stake in shares of Simply Good Foods in the 4th quarter valued at $599,000. Corient Private Wealth LLC bought a new stake in shares of Simply Good Foods in the 4th quarter valued at $302,000. Villanova Investment Management Co LLC bought a new stake in shares of Simply Good Foods in the 4th quarter valued at $1,794,000. River Road Asset Management LLC bought a new stake in shares of Simply Good Foods in the 4th quarter valued at $31,857,000. Finally, Pacer Advisors Inc. bought a new stake in shares of Simply Good Foods in the 4th quarter valued at $6,499,000. 88.45% of the stock is owned by institutional investors.

Simply Good Foods News Summary

Here are the key news stories impacting Simply Good Foods this week:

• Neutral Sentiment: BTIG initiated coverage with a neutral recommendation, which is unlikely to reverse the current negative momentum but signals some institutional interest. BTIG Initiates Coverage
• Negative Sentiment: Multiple law firms have announced investigations and investor alerts alleging potential securities fraud related to Simply Good Foods’ disclosures and expansion issues; this increases litigation risk, potential legal costs and investor uncertainty. Representative filings: Kirby McInerney LLP. Kirby McInerney Alert
• Negative Sentiment: Additional firms (Levi & Korsinsky, Bleichmar Fonti & Auld, Glancy Prongay Wolke, others) have launched or promoted class‑action inquiries after the stock plunged following Q2 results — amplifying reputational and financial downside. Example: Levi & Korsinsky alert. Levi & Korsinsky Alert
• Negative Sentiment: Zacks downgraded SMPL from “hold” to “strong sell,” reinforcing downward analyst pressure and likely contributing to selling interest until clearer operational improvement appears. Zacks Downgrade
• Negative Sentiment: Independent commentary (Seeking Alpha) highlights tightening competition, shrinking distribution and the company’s inability to pass input-cost inflation to prices — a bearish view on medium‑term revenue and margin recovery. Seeking Alpha Analysis

About Simply Good Foods

Simply Good Foods Co (NASDAQ: SMPL) is a North American consumer packaged foods company specializing in better-for-you nutrition products. The company’s portfolio centers on two well-established brands, Atkins and Quest, which offer a range of low-carbohydrate, high-protein bars, powders, shakes, and snacks. Simply Good Foods aims to support consumers’ health and wellness goals by delivering convenient, nutrient-dense options without added sugars or artificial sweeteners.

Under the Atkins brand, the company produces meal replacements, snack bars, and ready-to-drink shakes designed for low-carb dieters.