The Fresh Market (TFM) Stock Plummeting Today Following CEO Departure
NEW YORK (TheStreet) -- Shares of The Fresh Market (TFM) are plummeting, sharply down 10.52% to $36.50 on very heavy volume in midday trading Tuesday, after announcing late yesterday that president and CEO Craig Carlock has left the company.
The specialty grocery retailer named COO Sean Crane as interim CEO, effective immediately.
Analysts at Piper Jaffray downgraded its rating on shares this morning to "neutral" from "overweight," citing increased risk after the company's CEO departure.
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About 1.82 million shares of The Fresh Market traded hands as of 12:14 p.m. ET today, compared to its average trading volume of about 465,679 shares a day.
The Greensboro, NC-based specialty retailer focuses on perishable product categories, which includes meat, seafood, produce, deli, bakery, floral, sushi and prepared foods.
Separately, TheStreet Ratings team rates FRESH MARKET INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate FRESH MARKET INC (TFM) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 1.2%. Since the same quarter one year prior, revenues rose by 15.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Food & Staples Retailing industry. The net income increased by 34.5% when compared to the same quarter one year prior, rising from $11.06 million to $14.88 million.
- TFM's debt-to-equity ratio is very low at 0.10 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.28 is very weak and demonstrates a lack of ability to pay short-term obligations.
- FRESH MARKET INC has improved earnings per share by 34.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, FRESH MARKET INC reported lower earnings of $1.05 versus $1.34 in the prior year. This year, the market expects an improvement in earnings ($1.57 versus $1.05).
- In its most recent trading session, TFM has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- You can view the full analysis from the report here: TFM Ratings Report
