Zacks Investment Research lowered shares of J M Smucker (NYSE:SJM) from a hold rating to a strong sell rating in a report issued on Friday.
According to Zacks, “Shares of Smucker have underperformed the industry in the past three months, which can be blamed on its fourth-quarter fiscal 2018 results wherein both top and bottom line missed the Zacks Consensus Estimate. The results were impacted by higher freight costs, which may weigh on its margins in near future as the company expects freight headwinds 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 to be realized in 2019.”
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Other analysts have also recently issued reports about the company. Barclays reissued a hold rating on shares of J M Smucker in a report on Monday, June 11th. Susquehanna Bancshares set a $159.00 price objective on J M Smucker and gave the stock a buy rating in a report on Monday, May 21st. Wells Fargo & Co set a $100.00 price objective on J M Smucker and gave the stock a hold rating 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, Stephens boosted their price objective on J M Smucker from $125.00 to $130.00 and gave the stock an equal weight rating in a report on Friday, April 6th. Seven investment analysts have rated the stock with a sell rating, five have issued a hold rating and six have given a buy rating to the company. The company currently has a consensus rating of Hold and a consensus price target of $123.23.
J M Smucker stock opened at $111.74 on Friday. The company has a debt-to-equity ratio of 0.59, a current ratio of 1.50 and a quick ratio of 0.68. J M Smucker has a 12-month low of $96.13 and a 12-month high of $133.38. The stock has a market capitalization of $12.56 billion, a P/E ratio of 13.90, a price-to-earnings-growth ratio of 1.74 and a beta of 0.63.
J M Smucker (NYSE:SJM) last released its quarterly earnings results on Thursday, June 7th. The company reported $1.93 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $2.18 by ($0.25). The business had revenue of $1.78 billion during the quarter, compared to the consensus estimate of $1.80 billion. J M Smucker had a net margin of 18.19% and a return on equity of 12.20%. The business’s quarterly revenue was down .1% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.80 earnings per share. sell-side analysts predict that J M Smucker will post 8.48 EPS for the current fiscal year.
In related news, insider Barry C. Dunaway sold 10,354 shares of the business’s stock in a transaction that occurred 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 completion of the transaction, the insider now directly owns 22,851 shares in the company, valued at approximately $2,425,405.14. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Mark R. Belgya sold 5,000 shares of the business’s stock in a transaction that occurred on Tuesday, June 26th. The shares were sold at an average price of $109.15, for a total value of $545,750.00. Following the completion of the transaction, the insider now owns 50,810 shares of the company’s stock, valued at $5,545,911.50. The disclosure for this sale can be found here. Insiders have sold a total of 17,842 shares of company stock valued at $1,909,911 over the last 90 days. Corporate insiders own 3.50% of the company’s stock.
Several institutional investors and hedge funds have recently modified their holdings of the stock. Curbstone Financial Management Corp acquired a new position in shares of J M Smucker in the 2nd quarter valued at approximately $1,507,000. DnB Asset Management AS acquired a new position in shares of J M Smucker in the 2nd quarter valued at approximately $1,879,000. Tandem Investment Advisors Inc. grew its position in shares of J M Smucker by 35.8% in the 2nd quarter. Tandem Investment Advisors Inc. now owns 115,157 shares of the company’s stock valued at $12,377,000 after purchasing an additional 30,369 shares during the period. Cardinal Capital Management Inc. grew its position in shares of J M Smucker by 8.2% in the 2nd quarter. Cardinal Capital Management Inc. now owns 125,845 shares of the company’s stock valued at $13,526,000 after purchasing an additional 9,585 shares during the period. Finally, Clarus Wealth Advisors acquired a new position in shares of J M Smucker in the 2nd quarter valued at approximately $109,000. Institutional investors and hedge funds own 79.21% of the company’s stock.
J M Smucker Company Profile
The J. M. Smucker Company manufactures and markets branded food and beverage products worldwide. It operates through U.S. Retail Coffee, U.S. Retail Consumer Foods, U.S. Retail Pet Foods, and International and Foodservice segments. The company primarily offers coffee, pet food products, 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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