McCormick & Company, Incorporated (MKC) Rating Increased to Buy at Zacks Investment Research

McCormick & Company, Incorporated (NYSE:MKC) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Tuesday. The firm currently has a $115.00 price objective on the stock. Zacks Investment Research‘s price objective suggests a potential upside of 12.69% from the stock’s previous close.

According to Zacks, “McCormick has outdone the industry in a year, backed by its focus on buyouts, innovations, cost savings and efficient marketing initiatives. These factors helped the company retain its stellar past record in fourth-quarter fiscal 2017, wherein both top and bottom lines rose year over year and topped estimates. While earnings gained from solid sales and cost savings, sales gained from buyouts, strong growth in the base business and new product additions. Notably, buyouts aided sales growth of 15%, and will likely remain a major driver. However, stiff competition in the food space may hurt profits. Also, the company remains susceptible to high material costs, which are expected to rise in fiscal 2018. Nonetheless, these are likely to be cushioned by the company’s CCI program, which has been boosting margins for quite some time. Further, management expects these factors to continue driving McCormick, as reflected in its fiscal 2018 view.”

Several other equities research analysts also recently weighed in on MKC. Jefferies Group set a $120.00 price objective on McCormick & Company, Incorporated and gave the company a “buy” rating in a report on Monday, October 30th. Credit Suisse Group set a $115.00 price objective on McCormick & Company, Incorporated and gave the company a “buy” rating in a report on Tuesday, December 12th. Deutsche Bank downgraded McCormick & Company, Incorporated from a “hold” rating to a “sell” rating and cut their price objective for the company from $103.00 to $98.00 in a report on Friday, January 19th. Stifel Nicolaus raised their price objective on McCormick & Company, Incorporated from $103.00 to $110.00 and gave the company a “hold” rating in a report on Friday, January 26th. Finally, UBS Group raised their price objective on McCormick & Company, Incorporated from $100.00 to $106.00 and gave the company a “neutral” rating in a report on Friday, January 26th. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating and five have assigned a buy rating to the stock. McCormick & Company, Incorporated currently has a consensus rating of “Hold” and a consensus target price of $107.67.

Shares of McCormick & Company, Incorporated (NYSE:MKC) traded down $0.25 during mid-day trading on Tuesday, hitting $102.05. The company’s stock had a trading volume of 217,751 shares, compared to its average volume of 1,175,168. The firm has a market cap of $13,351.73, a P/E ratio of 27.53, a PEG ratio of 2.23 and a beta of 0.61. McCormick & Company, Incorporated has a 52-week low of $90.25 and a 52-week high of $109.67. The company has a debt-to-equity ratio of 1.73, a quick ratio of 0.42 and a current ratio of 0.83.

McCormick & Company, Incorporated (NYSE:MKC) last issued its earnings results on Thursday, January 25th. The company reported $1.54 earnings per share for the quarter, beating the Zacks’ consensus estimate of $1.52 by $0.02. The firm had revenue of $1.49 billion for the quarter, compared to the consensus estimate of $1.48 billion. McCormick & Company, Incorporated had a return on equity of 25.30% and a net margin of 9.88%. The company’s revenue was up 21.5% compared to the same quarter last year. During the same quarter last year, the business posted $1.27 EPS. analysts expect that McCormick & Company, Incorporated will post 4.88 EPS for the current fiscal year.

In other McCormick & Company, Incorporated news, VP Michael R. Smith sold 2,575 shares of McCormick & Company, Incorporated stock in a transaction dated Tuesday, January 30th. The stock was sold at an average price of $107.96, for a total transaction of $277,997.00. Following the transaction, the vice president now directly owns 17,312 shares of the company’s stock, valued at approximately $1,869,003.52. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Patricia A. Little sold 6,250 shares of McCormick & Company, Incorporated stock in a transaction dated Monday, January 29th. The stock was sold at an average price of $108.63, for a total value of $678,937.50. Following the transaction, the director now directly owns 15,497 shares in the company, valued at $1,683,439.11. The disclosure for this sale can be found here. 15.30% of the stock is currently owned by insiders.

Hedge funds have recently bought and sold shares of the company. Toronto Dominion Bank raised its position in shares of McCormick & Company, Incorporated by 24.3% in the 2nd quarter. Toronto Dominion Bank now owns 39,362 shares of the company’s stock worth $3,838,000 after acquiring an additional 7,684 shares in the last quarter. Amundi Pioneer Asset Management Inc. increased its position in McCormick & Company, Incorporated by 81.9% in the 3rd quarter. Amundi Pioneer Asset Management Inc. now owns 1,629,070 shares of the company’s stock valued at $167,208,000 after buying an additional 733,375 shares in the last quarter. Twin Capital Management Inc. bought a new stake in McCormick & Company, Incorporated in the 3rd quarter valued at about $930,000. Oppenheimer & Co. Inc. increased its position in McCormick & Company, Incorporated by 4.3% in the 3rd quarter. Oppenheimer & Co. Inc. now owns 41,323 shares of the company’s stock valued at $4,241,000 after buying an additional 1,698 shares in the last quarter. Finally, Bath Savings Trust Co increased its position in McCormick & Company, Incorporated by 4.2% in the 4th quarter. Bath Savings Trust Co now owns 92,744 shares of the company’s stock valued at $9,452,000 after buying an additional 3,740 shares in the last quarter. 76.16% of the stock is owned by hedge funds and other institutional investors.

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About McCormick & Company, Incorporated

McCormick & Company, Incorporated is engaged in manufacturing, marketing and distributing spices, seasoning mixes, condiments and other flavorful products to the food industry, including retailers, food manufacturers and foodservice businesses. The Company’s segments include consumer and industrial. The Company is involved in the manufacturing and sales of flavorful products.

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