Simply Good Foods (NASDAQ:SMPL) Shares Gap Up After Earnings Beat

by · The Cerbat Gem

The Simply Good Foods Company (NASDAQ:SMPL – Get Free Report)’s stock price gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $12.84, but opened at $15.03. Simply Good Foods shares last traded at $12.9690, with a volume of 1,258,498 shares changing hands.

The financial services provider reported $0.42 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.35 by $0.07. Simply Good Foods had a negative net margin of 7.46% and a positive return on equity of 9.72%. The business had revenue of $356.98 million for the quarter, compared to analysts’ expectations of $332.99 million. During the same period last year, the firm posted $0.51 earnings per share. The firm’s quarterly revenue was down 6.3% compared to the same quarter last year.

Simply Good Foods News Summary

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

  • Positive Sentiment: SMPL posted adjusted EPS of $0.42, ahead of the $0.35 consensus, and revenue of $357.0 million versus $333.0 million expected, which supports the shares. Article title
  • Positive Sentiment: The company raised fiscal 2026 revenue guidance to about $1.345 billion-$1.355 billion, slightly above the market’s prior expectations, signaling management sees some improvement ahead. Article title
  • Neutral Sentiment: Simply Good Foods said it is making initial progress on turnaround priorities, with cost controls and buybacks helping near-term sentiment, though the long-term strategy still needs proof. Article title
  • Negative Sentiment: Despite the beat, net sales fell 6.3% year over year and adjusted EBITDA dropped sharply, underscoring ongoing operating pressure. Article title
  • Negative Sentiment: Management’s outlook calls for full-year sales to decline roughly 7% to 6% and gross margin to contract, while analysts are also flagging brand relevance and distribution issues for Atkins, OWYN and Quest. Article title
  • Negative Sentiment: Coverage has also highlighted category headwinds, including the impact of GLP-1 adoption on demand, which could keep investors cautious despite the earnings beat. Article title

Analyst Upgrades and Downgrades

Several analysts recently weighed in on the company. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Simply Good Foods in a research note on Thursday, June 18th. Stifel Nicolaus lowered their target price on Simply Good Foods from $32.00 to $20.00 and set a “buy” rating for the company in a research note on Friday, April 10th. Sanford C. Bernstein cut shares of Simply Good Foods from an “outperform” rating to a “market perform” rating and dropped their target price for the stock from $17.00 to $12.00 in a report on Wednesday, June 3rd. Morgan Stanley reduced their price target on shares of Simply Good Foods from $24.00 to $14.00 and set an “equal weight” rating on the stock in a research note on Friday, April 10th. Finally, DA Davidson upgraded shares of Simply Good Foods to a “hold” rating in a research report on Monday. Three investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $17.30.

Get Our Latest Research Report on Simply Good Foods

Insider Transactions at Simply Good Foods

In related news, Director James M. Kilts acquired 80,000 shares of the business’s stock in a transaction that occurred on Thursday, April 23rd. The shares were bought at an average cost of $12.39 per share, with a total value of $991,200.00. Following the completion of the purchase, the director directly owned 172,854 shares in the company, valued at $2,141,661.06. The trade was a 86.16% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available at this link. Also, Director Clayton C. Daley, Jr. bought 10,000 shares of Simply Good Foods stock in a transaction that occurred on Thursday, May 14th. The stock was bought at an average price of $11.78 per share, for a total transaction of $117,800.00. Following the completion of the acquisition, the director directly owned 111,743 shares of the company’s stock, valued at $1,316,332.54. The trade was a 9.83% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders own 8.76% of the company’s stock.

Institutional Investors Weigh In On Simply Good Foods

A number of institutional investors have recently modified their holdings of SMPL. River Road Asset Management LLC acquired a new stake in shares of Simply Good Foods during the fourth quarter worth $31,857,000. Marshall Wace LLP acquired a new stake in Simply Good Foods during the 3rd quarter worth about $31,825,000. Oaktree Capital Management LP acquired a new stake in Simply Good Foods during the 1st quarter worth about $16,200,000. Millennium Management LLC raised its position in shares of Simply Good Foods by 482.7% in the 3rd quarter. Millennium Management LLC now owns 1,246,236 shares of the financial services provider’s stock worth $30,932,000 after acquiring an additional 1,032,358 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership lifted its stake in shares of Simply Good Foods by 179.7% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 1,472,753 shares of the financial services provider’s stock valued at $21,134,000 after purchasing an additional 946,216 shares during the period. 88.45% of the stock is owned by institutional investors.

Simply Good Foods Trading Up 1.0%

The firm has a 50-day moving average of $12.31 and a 200 day moving average of $15.11. The company has a market cap of $1.17 billion, a P/E ratio of -10.95 and a beta of 0.13. The company has a current ratio of 5.06, a quick ratio of 2.87 and a debt-to-equity ratio of 0.27.

About Simply Good Foods

(Get Free Report)

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.

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