Zacks Investment Research Upgrades J.M. Smucker Company (The) (SJM) to “Hold”
J.M. Smucker Company (The) (NYSE:SJM) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a note issued to investors on Thursday.
According to Zacks, “Smucker’s shares have underperformed the industry on a year-to-date basis, due to unfavorable coffee volumes. Smucker also posted disappointing first-quarter fiscal 2018 results and slashed its earnings guidance for fiscal 2018. Both earnings and sales declined on a year over year basis due to lower coffee volumes, planned increases in commodity costs and higher marketing expense. In fact, the quarter marked the fifth straight quarter of sales decline in its coffee business. Heightened competition in the pet food business also remains a cause of concern. Nevertheless, the company has resorted to cost cuts amid the tough industry conditions to uplift its performance. Strong organic sales growth, product innovation and improving its position in the mainstream dog food category is driving volumes and is expected to drive profits.”
A number of other brokerages have also issued reports on SJM. Stephens lowered J.M. Smucker Company (The) from an “overweight” rating to an “equal weight” rating and decreased their price target for the stock from $165.00 to $125.00 in a research note on Wednesday, July 19th. Morgan Stanley reissued an “underweight” rating and issued a $114.00 price target (down from $126.00) on shares of J.M. Smucker Company (The) in a research note on Tuesday, July 18th. Hilliard Lyons raised J.M. Smucker Company (The) from a “neutral” rating to a “long-term buy” rating and set a $140.00 price target on the stock in a research note on Tuesday, July 11th. They noted that the move was a valuation call. BidaskClub raised J.M. Smucker Company (The) from a “strong sell” rating to a “sell” rating in a research note on Saturday, August 12th. Finally, Credit Suisse Group reaffirmed a “neutral” rating and issued a $126.00 price objective (down from $138.00) on shares of J.M. Smucker Company (The) in a research note on Friday, May 19th. Three analysts have rated the stock with a sell rating, seven have given a hold rating and three have issued a buy rating to the company. J.M. Smucker Company (The) currently has a consensus rating of “Hold” and a consensus price target of $126.73.
Shares of J.M. Smucker Company (SJM) opened at 107.24 on Thursday. The firm’s 50-day moving average is $115.83 and its 200-day moving average is $124.61. J.M. Smucker Company has a 52 week low of $103.50 and a 52 week high of $143.68. The stock has a market capitalization of $12.18 billion, a price-to-earnings ratio of 22.52 and a beta of 0.62.
J.M. Smucker Company (The) (NYSE:SJM) last issued its quarterly earnings results on Thursday, August 24th. The company reported $1.51 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.61 by ($0.10). J.M. Smucker Company (The) had a return on equity of 12.06% and a net margin of 7.50%. The business had revenue of $1.75 billion during the quarter, compared to analyst estimates of $1.81 billion. During the same period in the previous year, the business posted $1.86 earnings per share. The firm’s quarterly revenue was down 3.7% on a year-over-year basis. On average, equities research analysts anticipate that J.M. Smucker Company will post $7.74 EPS for the current fiscal year.
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In other news, insider Richard K. Smucker purchased 10,000 shares of the business’s stock in a transaction on Tuesday, August 29th. The stock was purchased at an average price of $105.40 per share, with a total value of $1,054,000.00. Following the acquisition, the insider now directly owns 652,168 shares in the company, valued at approximately $68,738,507.20. The purchase was disclosed in a document filed with the SEC, which is accessible through this link. Also, Director Gary A. Oatey purchased 1,000 shares of the business’s stock in a transaction on Monday, September 11th. The stock was purchased at an average cost of $107.30 per share, with a total value of $107,300.00. The disclosure for this purchase can be found here. In the last ninety days, insiders acquired 11,250 shares of company stock valued at $1,191,453 and sold 16,030 shares valued at $1,948,195. Corporate insiders own 3.50% of the company’s stock.
Institutional investors have recently bought and sold shares of the business. BlackRock Inc. raised its holdings in shares of J.M. Smucker Company (The) by 2,899.4% in the 1st quarter. BlackRock Inc. now owns 7,583,056 shares of the company’s stock worth $993,987,000 after buying an additional 7,330,233 shares in the last quarter. Fundsmith LLP raised its holdings in shares of J.M. Smucker Company (The) by 68.3% in the 2nd quarter. Fundsmith LLP now owns 3,450,789 shares of the company’s stock worth $525,935,000 after buying an additional 1,399,810 shares in the last quarter. Schroder Investment Management Group raised its holdings in shares of J.M. Smucker Company (The) by 7,253.2% in the 2nd quarter. Schroder Investment Management Group now owns 1,166,740 shares of the company’s stock worth $137,699,000 after buying an additional 1,150,873 shares in the last quarter. Norges Bank acquired a new position in shares of J.M. Smucker Company (The) in the 4th quarter worth approximately $138,979,000. Finally, Vanguard Group Inc. raised its holdings in shares of J.M. Smucker Company (The) by 10.5% in the 4th quarter. Vanguard Group Inc. now owns 10,692,386 shares of the company’s stock worth $1,318,800,000 after buying an additional 1,017,933 shares in the last quarter. 73.46% of the stock is owned by hedge funds and other institutional investors.
J.M. Smucker Company (The) Company Profile
The J. M. Smucker Company is a manufacturer and marketer of branded food and beverage products and pet food and pet snacks in North America. The Company’s segments include U.S. Retail Coffee, U.S. Retail Consumer Foods, U.S. Retail Pet Foods, and International and Foodservice. The Company’s U.S. retail market segments consist of the sale of branded food products to consumers through retail outlets in North America.
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