Paradice Investment Management Liquidates Its $20 Million Nomad Foods (NYSE: NOMD) Position: Is the Stock in Trouble?
Key Points
Paradice sold 1,204,570 shares, with an estimated transaction value of $20.47 million based on average pricing during the quarter ended 2025-09-30.
The trade represented 4.59% of reported 13F assets under management.
Paradice's post-trade stake is zero shares, eliminating the position from the portfolio.
The position was previously 4.16% of the fund's AUM.
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Paradice Investment Management LLC exited its stake in Nomad Foods Limited (NYSE:NOMD) in the third quarter, selling 1,204,570 shares for an estimated $20.47 million during the quarter ended 2025-09-30, per October 20, 2025, SEC data.
What happened
According to a filing with the United States Securities and Exchange Commission dated October 20, 2025, Paradice Investment Management LLC sold all 1,204,570 shares of Nomad Foods Limited (NOMD), valued at an estimated $20.47 million based on the average price during Q3 2025.
The fund reported no remaining shares of Nomad Foods as of September 30, 2025.
What else to know
The fund fully exited its stake in Nomad Foods, which now represents 0% of 13F assets under management.
Paradice's top holdings after the filing:
- Globus Medical: $37.97 million (8.5% of AUM) as of September 30, 2025
- Envista: $36.81 million (8.25% of AUM) as of September 30, 2025
- Lear: $32.28 million (7.2% of AUM) as of September 30, 2025
- Mohawk Industries: $30.58 million (6.9% of AUM) as of September 30, 2025
- Generac: $30.35 million (6.8% of AUM) as of September 30, 2025
As of October 20, 2025, shares were priced at $12.03, down 32% over the 12 months ending October 20, 2025, underperforming the S&P 500 by 46 percentage points during the past year.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $3.61 billion |
| Net Income (TTM) | $249.1 million |
| Dividend Yield | 5.5% |
Company Snapshot
Nomad Foods offers a portfolio of frozen foods, including fish, vegetables, poultry, ready-made meals, ice cream, and bakery products under brands such as Birds Eye, Iglo, Findus, and others.
It generates revenue primarily through manufacturing, marketing, and direct distribution of packaged frozen food products to supermarkets and food retail chains across Europe.
The company's main customers are large supermarket chains and food retailers in the United Kingdom, Italy, Germany, France, Sweden, Austria, Norway, Spain, and other European markets.
Nomad Foods is a leading European frozen foods company with a market capitalization of $1.81 billion and trailing twelve-month revenue of $3.07 billion for the period ending June 30, 2025.
The company leverages a diverse brand portfolio and an extensive distribution network in the consumer defensive sector. It focuses on established retail partnerships and well-known brands.
Foolish take
Paradice Investment Management fully liquidated its stake in Nomad Foods in the last quarter after gradually selling out of the position since 2023.
At its peak, Nomad Foods was a 5.5% portfolio allocation for Paradice, so the liquidation is a noteworthy event for investors.
After reaching an all-time high of around $30 per share in 2021, Nomad's stock has steadily sold off over time and is now down over 60% from this peak.
It looks like Paradice may simply be giving up on the stock after years of disappointment.
However, I think the company looks really interesting from a longer-term Foolish perspective. Nomad Foods is a leader in the frozen foods niche in Europe and consistently produces net income and free cash flow (FCF), regardless of what has happened to its stock recently.
Now the company trades with an enterprise value-to-FCF ratio of just 13, which is its lowest level in a decade. Similarly, its 5.5% dividend yield is the highest it has ever been and only uses 37% of Nomad's FCF.
With its stock selling off and trading at a once-in-a-decade valuation, Nomad has been buying its own shares back hand over fist, reducing its share count by 6% annually over the last three years.
It may not be the most exciting investment -- and it may be contrary to Paradice's liquidation -- but I think Nomad Foods looks like an interesting value stock to buy for the long term, thanks to its very stable operations.
Glossary
Exited its stake: When an investor sells all shares of a particular holding, fully removing it from their portfolio.
13F assets under management (AUM): The total value of securities reported by institutional investment managers in quarterly SEC Form 13F filings.
Portfolio: A collection of investments held by an individual or institution.
Trailing twelve-month (TTM): The 12-month period ending with the most recent quarterly report.
Dividend yield: A financial ratio showing how much a company pays in dividends relative to its share price.
Consumer defensive sector: Industry segment including companies that produce essential goods, such as food and household products, less sensitive to economic cycles.
Distribution network: The system a company uses to deliver products from manufacturing to end customers or retailers.
Market capitalization: The total market value of a company's outstanding shares.
Fund: An investment vehicle pooling money from multiple investors to purchase securities.
Position: The amount of a particular security or asset owned by an investor or fund.
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Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Globus Medical. The Motley Fool has a disclosure policy.
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