Simply Good Foods (SMPL) Bearish Update

Earlier this year, we put out a bearish alert for Simply Good Foods (SMPL), citing YoY weakness in 21Q1 Demand volume. Although underlying Purchase Intent Mentions have gained since January, they remain lower than the previous year: -13% YoY on a 90-day Moving average.

SMPL managed to top market EPS expectations on its most recent earnings report, but reported revenue came in less than 1% above estimates. The stock has gained ~20% since our bearish entry, but SMPL shares have found firm resistance at $35 -- We’re maintaining our short position, barring a convincing move above $35 or a surge in consumer Demand.