S&P 500
0.00
+0.00%
Dow Jones
51,018.80
+0.58%
Nasdaq 100
30,344.40
+0.25%
Russell 2000
2,916.31
-0.54%
FTSE 100
10,378.60
-0.32%
Nikkei 225
66,231.90
+0.67%

Companies and Brands

Is This the Start of the Inventure Foods Turnaround?

Photo of Chris Lange
By Chris Lange Updated Published
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Is This the Start of the Inventure Foods Turnaround?

© Thinkstock

Shares of Inventure Foods Inc. (NASDAQ: SNAK) saw one of their better gains in the market on Wednesday, after the firm said that it plans to sell its frozen food business. According to the deal, the firm will sell the business, including the Rader Farms and Willamette Valley Fruit Company brands, as well as certain assets, rights and properties related to its frozen fruits, vegetable blends, beverages, and frozen desserts, to Oregon Potato Company for total cash consideration of $50.0 million.

Although $50 million might not seem like a lot of money in the grand scheme, keep in mind that prior to Wednesday this company had a market cap of roughly $65 million.

Also, prior to this announcement, the stock was down 66% year to date, and it seems like now could be the start of a turnaround for this snack maker.

This transaction is expected to be completed in September 2017, and management believes that this represents an important step in the company’s ongoing strategic and financial review process to maximize shareholder value.

[nativounit]

The proceeds from the transaction will be used to repay in full the indebtedness under the company’s revolving credit facility with Wells Fargo Bank, National Association and the other lenders.

Terry McDaniel, CEO of Inventure Foods, commented:

We are pleased to enter into an agreement for the sale of our frozen business. This is a significant second step under our strategic and financial business review. We intend to use the proceeds from the transaction to further reduce our debt and improve our overall financial flexibility in order to allow us to focus on continuing to grow our leading snack business as we finalize our strategic review.

Shares of Inventure were last seen up about 24% at $4.15, with a consensus analyst price target of $10.00 and a 52-week range of $2.96 to $10.15.

[recirclink id=412739]

[wallst_email_signup]

DISCLOSURE:
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA(www.finra.org)/SIPC(www.sipc.org). Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov. Probability of Member receiving $1,000 is a probability of 0.026%; If you don’t make a selection in 30 days, you’ll no longer qualify for the promo. Customer must fund their account with a minimum of $50.00 to qualify. Other fees, such as exchange fees, may apply. Please view our fee disclosure to view a full listing of fees. Investing in alternative investments and/or strategies may not be suitable for all investors and involves unique risks, including the risk of loss. An investor should consider their individual circumstances and any investment information, such as a prospectus, prior to investing. Interval Funds are illiquid instruments, the ability to trade on your timeline may be restricted. Brokerage and Active investing products offered through SoFi Securities LLC, Member FINRA(www.finra.org) /SIPC(www.sipc.org). There are limitations with fractional shares to consider before investing. During market hours fractional share orders are transmitted immediately in the order received. There may be system delays from receipt of your order until execution and market conditions may adversely impact execution prices. Outside of market hours orders are received on a not held basis and will be aggregated for each security then executed in the morning trade window of the next business day at market open. Share will be delivered at an average price received for executing the securities through a single batched order. Fractional shares may not be transferred to another firm. Fractional shares will be sold when a transfer or closure request is initiated. Please consider that selling securities is a taxable event. Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire investment Before trading options please review the Characteristics and Risks of Standardized Options  Investing in an Initial Public Offering (IPO) involves substantial risk, including the risk of loss. Further, there are a variety of risk factors to consider when investing in an IPO, including but not limited to, unproven management, significant debt, and lack of operating history. For a comprehensive discussion of these risks please refer to SoFi Securities’ IPO Risk Disclosure Statement This should not be considered a recommendation to participate in IPOs and investors should carefully read the offering prospectus to determine whether an offering is consistent with their investment objectives, risk tolerance, and financial situation. New offerings generally have high demand and there are a limited number of shares available for distribution to participants. Many customers may not be allocated shares and share allocations may be significantly smaller than the shares requested in the customer’s initial offer (Indication of Interest). For more information on the allocation process please visit IPO Allocation.
Follow 24/7 Wall St. on Google
Photo of Chris Lange
About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.

Continue Reading

Are Pinnacle Foods Shareholders Getting Enough in the Buyout?
Chris Lange |

Are Pinnacle Foods Shareholders Getting Enough in the Buyout?

Pinnacle Foods shares dropped early on Wednesday after it was announced that the company would be acquired by Conagra Brands.

4 Buy-Rated Blue Chip Stocks With Dividend Hikes Due This Week
Lee Jackson |

4 Buy-Rated Blue Chip Stocks With Dividend Hikes Due This Week

Four top companies are expected to raise their dividends this week, including American Express and Starbucks. This shows that these…

This Sector Continues Higher, and 7 Top ‘Strong Buy’ Stocks Also Pay Big Dividends
Lee Jackson |

This Sector Continues Higher, and 7 Top ‘Strong Buy’ Stocks Also Pay Big Dividends

With interest rates rising and the bears in charge, consumer staples is the sector that has seen the biggest moves…

4 ‘Strong Buy’ Stocks With Dividend Hikes Expected This Week
Lee Jackson |

4 ‘Strong Buy’ Stocks With Dividend Hikes Expected This Week

These four top companies are expected to lift the dividends they pay to shareholders this week. Increasing dividends and returning…

Blue Chip Defense Leader Among 4 Top Stocks With Dividend Hikes Expected This Week
Lee Jackson |

Blue Chip Defense Leader Among 4 Top Stocks With Dividend Hikes Expected This Week

Four top companies are expected to raise their dividends this week, including General Mills and Lockheed Martin. This shows that…

AdvancePierre Foods Announces Potential Pricing for IPO
Chris Lange |

AdvancePierre Foods Announces Potential Pricing for IPO

AdvancePierre Foods expects to price more than 18 million shares in the range of $20 to $23 per share for…

Jack in the Box Unloads Qdoba to Private Equity Firm
Chris Lange |

Jack in the Box Unloads Qdoba to Private Equity Firm

Jack in the Box shares made a handy gain early on Tuesday after the fast-food chain announced that it would…

7 ‘Strong Buy’ Defensive Dividend Stocks to Grab Now as Markets May Return to June Lows
Lee Jackson |

7 ‘Strong Buy’ Defensive Dividend Stocks to Grab Now as Markets May Return to June Lows

Here are seven defensive dividend leader stocks that look like outstanding ideas for worried investors now. With even moderate appreciation…

Pepsi’s Next Big Acquisition in China
Chris Lange |

Pepsi’s Next Big Acquisition in China

PepsiCo made a big move in China over the weekend that was unrelated to the coronavirus. The food and beverage…

Top Gaining Stocks

Dell Technologies
DELL • Vol: 42,366,555
NetApp
NTAP • Vol: 15,911,807
ServiceNow
NOW • Vol: 68,243,561
IBM
IBM • Vol: 28,527,546
Hewlett Packard Enterprise
HPE • Vol: 86,996,387

Top Losing Stocks

Coterra Energy
CTRA • Vol: 73,319,495
Clorox
CLX • Vol: 4,744,001
ResMed
RMD • Vol: 3,526,686
Intel
INTC • Vol: 191,680,425
Skyworks Solutions
SWKS • Vol: 5,407,806