Fresh Del Monte Produce Inc. (NYSE:FDP) Sees Significant Growth in Short Interest

Fresh Del Monte Produce Inc. (NYSE:FDP) was the target of a large increase in short interest in February. As of February 28th, there was short interest totalling 1,180,000 shares, an increase of 31.0% from the February 13th total of 900,900 shares. Currently, 3.0% of the company’s stock are sold short. Based on an average daily volume of 349,400 shares, the days-to-cover ratio is currently 3.4 days.

Analysts Set New Price Targets

Separately, StockNews.com raised shares of Fresh Del Monte Produce from a “hold” rating to a “buy” rating in a report on Monday.

Fresh Del Monte Produce Stock Performance

NYSE:FDP traded down $0.39 during midday trading on Tuesday, reaching $29.89. 182,481 shares of the company traded hands, compared to its average volume of 270,441. The company has a debt-to-equity ratio of 0.14, a current ratio of 2.09 and a quick ratio of 1.04. The firm has a market capitalization of $1.43 billion, a price-to-earnings ratio of 90.49 and a beta of 0.33. 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 price of $30.76 and a 200 day moving average price of $31.21.

Fresh Del Monte Produce (NYSE:FDP) last released 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 net margin of 0.36% and a return on equity of 5.91%. The business had revenue of $1.01 billion for the quarter, compared to the consensus estimate of $1.14 billion. During the same period last year, the firm posted $0.25 EPS. The business’s quarterly revenue was up .5% on a year-over-year basis.

Fresh Del Monte Produce Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, March 28th. Investors of record on Monday, March 10th will be given a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a yield of 4.01%. The ex-dividend date of this dividend is Monday, March 10th. This is a positive change from Fresh Del Monte Produce’s previous quarterly dividend of $0.25. Fresh Del Monte Produce’s dividend payout ratio is currently 40.40%.

Fresh Del Monte Produce announced that its board has approved a share repurchase program on Monday, February 24th that authorizes the company to buyback $150.00 million in outstanding shares. This buyback authorization authorizes the company to repurchase up to 10.4% of its stock through open market purchases. Stock buyback programs are often a sign that the company’s management believes its shares are undervalued.

Insider Activity

In other Fresh Del Monte Produce news, COO Mohammed Abbas sold 5,064 shares of the 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 $154,046.88. Following the transaction, the chief operating officer now owns 45,560 shares of the company’s stock, valued at $1,385,935.20. This trade represents a 10.00 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, SVP Ziad Nabulsi sold 1,725 shares of the business’s stock in a transaction that occurred on Monday, March 3rd. The shares were sold at an average price of $30.42, for a total value of $52,474.50. Following the completion of the sale, the senior vice president now owns 11,498 shares of the company’s stock, valued at $349,769.16. This trade represents a 13.05 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 9,321 shares of company stock worth $283,545. 30.10% of the stock is currently owned by corporate insiders.

Institutional Trading of Fresh Del Monte Produce

A number of institutional investors have recently made changes to their positions in FDP. Entropy Technologies LP acquired a new stake in Fresh Del Monte Produce in the third quarter worth approximately $314,000. Victory Capital Management Inc. acquired a new stake in shares of Fresh Del Monte Produce in the third quarter valued at $342,000. Royce & Associates LP bought a new position in Fresh Del Monte Produce during the third quarter valued at about $201,000. Empowered Funds LLC grew its holdings in Fresh Del Monte Produce by 5.3% during the third quarter. Empowered Funds LLC now owns 249,340 shares of the company’s stock worth $7,366,000 after acquiring an additional 12,596 shares during the period. Finally, Chesapeake Capital Corp IL acquired a new position in Fresh Del Monte Produce during the third quarter worth about $592,000. 64.83% of the stock is owned by institutional investors and hedge funds.

Fresh Del Monte Produce Company Profile

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.