On Tuesday, December 29, The Simply Good Foods Company (SMPL) became part of the S&P SmallCap 600 index for protein snacks and health food makers. It was expected that this will draw more interest from investors to the stock of the firm.
Simply Good Foods has specialized in the marketing of diet food for a long time. Such goods also account for an essential part of the manufacturer’s revenue. SMPL, though, upgraded its product line a couple of years ago and now focuses on offering so-called balanced snack items.
The decision comes at a good time when the market is in strong demand for a healthier lifestyle, and the market is growing for people who are attentive to their diet. If those who wish to lose weight were previously the biggest consumers of Simply Good Foods, the customer base is now spread to those who do not have weight issues but want to stay in shape.
Nutrition bars with cereals, berries, and other additives, a range of easy breakfasts, frozen food, and many more are included in the Simply Good Foods product line. The company invested $1 billion in 2019 to acquire Quest Nutrition, a nutritious snack manufacturer, to improve its product portfolio.
Simply Good Foods become part of the S&P SmallCap 600 stock index next week, which puts together 600 small-cap businesses. Inclusion in the index normally results in a transient spike in the number of shares, as the shares fall into the index funds.
But that is not the case so far with The Simply Good Foods Company (SMPL) which was down -1.28% to $30.06 on Wednesday. Over the week company is up just 1% but the gain increases to nearly 30% over the past month. The firm has added 35.53% during the past six months while in the past one year the value added to the stock price is 8.32%.
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