Daily Stock Analysis: SpartanNash Co

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SpartanNash Co has the ticker symbol SPTN and is a small-cap member of the consumer defensive sector as a food distributor. This is my second report on SpartanNash for this Vista folio, I previously featured It on December 2, 2020, and it was selected for my previous Volio portfolio.

SpartanNash Co is a multi-regional grocery distributor and retailer. 

The company operates in the United States and is segmented into Military, Food Distribution, and Retail.

Its Military segment consists of the distribution of products to The United States military commissaries, which provide food to active-duty, guard, reserve, or retired members of the military at discounted prices. 

The Food distribution segment proves to be the principal division, deriving the revenue streams for the company. 

Its retail division consists of supplying both independent grocery retailers and company-owned retail stores.

SpartanNash Company also markets and distributes private brand items primarily under the Our Family brand name. 

The company was formerly known as Spartan Stores, Inc. and changed its name to SpartanNash Company in November 2013. 

SpartanNash Company was founded in 1917 and is headquartered in Grand Rapids, Michigan.

Three key data points gauge dividend equities or funds like SpartanNash Co:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money. 

SPTN Price

SpartanNash's price per share closed at $20.31 Friday. One year ago its price was $18.22. Thus, price per share has grown about 11% as it recovered from last year's Covid market slump. 

Should SpartanNash's stock trade in the range of $16 to $24.00 this next year, its recent $20.31 price might rise by $1.69 to reach $22.00 by May 25, 2022. My estimate is  $0.20 higher of the median of six price estimates from analysts tracking SPTN.

SPTN Dividends

SpartanNash Co's most recent quarterly dividend of $0.20 was paid on March 30th and equates to $0.80 annually which will yield 3.94% based on Friday's $20.31 closing price. SpartanNash Co has paid quarterly dividends increasing annually since 2010 (11 years.)

SPTN Returns

Adding the $0.80 annual SpartanNash forward-looking dividend to my $1.69 price upside estimate shows a $2.49 potential gross gain, per share, to be reduced by any costs to trade the shares.  Say we invest $1000 in SPTN at $20.31 per share, we'd buy 49 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at a sale and might cost us about $0.20 per share.

Subtract that maybe $0.20 brokerage cost from my estimated $2.49 gross gain per share results in a net gain of $2.29 X 49 shares = $112.21 for an 11.2% net gain on a $995.19 investment.

So it is that SpartanNash Co shows a possible 11.2% net gain including a 3.94% forward estimated dividend yield. 

Over the next year at this time, a $1000 investment in SPTN could generate $39.40 in cash dividends. And a single share bought at yesterday's closing price was just $20.31! So, if SPTN is your kind of food distribution investment, SpartanNash Co's share price is just over half the expected annual dividend income from $1,000 invested. This suggests now is a good time to add SpartanNash Co to your stock holdings.  

All of the estimates above are speculation based on the past history of SpartanNash Co. Only time and money invested in this stock will determine its worth.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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