Zacks Investment Research upgraded shares of J M Smucker (NYSE:SJM) from a sell rating to a hold rating in a research note published on Wednesday morning.
According to Zacks, “Shares of Smucker have underperformed the industry in the past six months, which can be blamed on its fourth-quarter fiscal 2018 results wherein both top and bottom line missed the Zacks Consensus Estimate. Results were hit by higher freight costs, which may dent margins in near future as Smucker expects freight woes to linger into 2019. Also, its coffee, and International and Away from Home segments sales were hurt by lower net price realization. Although the above-mentioned hurdles persist, the company’s Uncrustable brand and K-Cup business are performing well with significant sales growth. Smucker’s recent acquisition of Ainsworth is likely to strengthen its pet’s snacks portfolio. It is also taking restructuring actionsto improve its e-commerce channel. Additionally, Smucker remains on track with its cost-saving initiative with $80 million savings expected in 2019. However, estimates have dropped lately ahead of earnings.”
A number of other brokerages have also issued reports on SJM. ValuEngine raised J M Smucker from a strong sell rating to a sell rating in a report on Wednesday, June 27th. Barclays reissued a hold rating on shares of J M Smucker in a report on Monday, June 11th. Credit Suisse Group decreased their price objective on J M Smucker from $115.00 to $98.00 and set an underperform rating for the company in a report on Tuesday, June 5th. Deutsche Bank set a $97.00 price objective on J M Smucker and gave the stock a hold rating in a report on Friday, June 8th. Finally, Citigroup decreased their price objective on J M Smucker from $155.00 to $127.00 and set a buy rating for the company in a report on Friday, June 8th. Six research analysts have rated the stock with a sell rating, six have issued a hold rating and five have assigned a buy rating to the company’s stock. The company currently has an average rating of Hold and an average target price of $121.83.
J M Smucker (NYSE:SJM) last issued its quarterly earnings data on Thursday, June 7th. The company reported $1.93 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.18 by ($0.25). J M Smucker had a return on equity of 12.20% and a net margin of 18.19%. The business had revenue of $1.78 billion during the quarter, compared to the consensus estimate of $1.80 billion. During the same period last year, the company earned $1.80 earnings per share. The business’s quarterly revenue was down .1% compared to the same quarter last year. equities analysts anticipate that J M Smucker will post 8.41 EPS for the current fiscal year.
The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 4th. Shareholders of record on Friday, August 17th will be paid a dividend of $0.85 per share. This is a positive change from J M Smucker’s previous quarterly dividend of $0.78. This represents a $3.40 dividend on an annualized basis and a yield of 3.07%. The ex-dividend date of this dividend is Thursday, August 16th. J M Smucker’s dividend payout ratio (DPR) is presently 39.20%.
In other news, insider Mark T. Smucker sold 2,500 shares of the firm’s stock in a transaction on Monday, July 16th. The stock was sold at an average price of $111.02, for a total transaction of $277,550.00. Following the completion of the sale, the insider now directly owns 121,179 shares of the company’s stock, valued at approximately $13,453,292.58. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, insider Barry C. Dunaway sold 10,354 shares of the firm’s stock in a transaction on Monday, June 11th. The stock was sold at an average price of $106.14, for a total value of $1,098,973.56. Following the sale, the insider now directly owns 22,851 shares of the company’s stock, valued at $2,425,405.14. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 20,342 shares of company stock valued at $2,187,461. 3.92% of the stock is currently owned by corporate insiders.
Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Hall Laurie J Trustee boosted its stake in shares of J M Smucker by 153.1% during the 1st quarter. Hall Laurie J Trustee now owns 810 shares of the company’s stock worth $101,000 after acquiring an additional 490 shares in the last quarter. Signaturefd LLC bought a new stake in shares of J M Smucker during the 1st quarter worth $106,000. Bedel Financial Consulting Inc. bought a new stake in shares of J M Smucker during the 1st quarter worth $108,000. Clarus Wealth Advisors bought a new stake in shares of J M Smucker during the 2nd quarter worth $109,000. Finally, WealthTrust Fairport LLC bought a new stake in shares of J M Smucker during the 1st quarter worth $143,000. 79.64% of the stock is owned by institutional investors and hedge funds.
J M Smucker Company Profile
The J. M. Smucker Company manufactures and markets branded food and beverage products worldwide. It operates in four segments: U.S. Retail Coffee, U.S. Retail Consumer Foods, U.S. Retail Pet Foods, and International and Away From Home. The company primarily offers coffee, pet food and pet snacks, peanut butter, fruit spreads, shortening and oils, baking mixes and ready-to-spread frostings, frozen sandwiches, flour and baking ingredients, juices and beverages, and portion control products.
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