Marzetti (NASDAQ:MZTI) Shares Gap Down After Earnings Miss

The Marzetti Company (NASDAQ:MZTI)’s stock price gapped down prior to trading on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $173.91, but opened at $165.00. Marzetti shares last traded at $161.58, with a volume of 9,806 shares.

The company reported $2.15 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.23 by ($0.08). Marzetti had a return on equity of 18.55% and a net margin of 9.25%.The company had revenue of $509.77 million for the quarter. Marzetti’s revenue for the quarter was up 1.7% compared to the same quarter last year.

Marzetti Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, December 31st. Investors of record on Friday, December 5th were paid a $1.00 dividend. This represents a $4.00 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date of this dividend was Friday, December 5th. Marzetti’s payout ratio is currently 64.94%.

Trending Headlines about Marzetti

Here are the key news stories impacting Marzetti this week:

• Positive Sentiment: Marzetti announced a definitive agreement to acquire Bachan’s (premium sauces) in a ~$400M deal — management says this will expand the company’s premium sauces footprint and product portfolio, which investors may view as a growth and margin-enhancing move. Marzetti to Acquire Bachan’s in $400 Million Deal
• Positive Sentiment: Company reported record Q2 gross profit and highlighted strategic product expansion and higher-margin initiatives tied to the Bachan’s deal — a constructive sign for medium-term margin recovery. Q2 Highlights: Record Gross Profit and Strategic Plans
• Neutral Sentiment: Earnings call presentation and full Q2 earnings transcripts are available for detail on volume pressures, pricing, and cost trends — useful for investors wanting granular guidance and management commentary. Q2 Results – Earnings Call Presentation
• Neutral Sentiment: DA Davidson reaffirmed a “neutral” rating with a $184 price target (implies upside from current levels), signaling analysts see potential but expect modest near-term returns. DA Davidson Reaffirms Neutral
• Negative Sentiment: Q2 EPS of $2.15 missed consensus ($2.23) and revenue showed only modest year-over-year growth; that earnings miss is a near-term negative catalyst. Q2 Earnings Summary & Key Takeaways
• Negative Sentiment: Stephens lowered its price target from $190 to $180 while keeping an “equal weight” rating, reducing upside expectations and adding pressure to the stock. Stephens Lowers Price Target
• Negative Sentiment: Market commentary highlights the sharp intraday decline and investor concern about volume and near-term demand softness — sentiment pieces detail the “bitter plunge” reaction. The Marzetti Company’s Bitter Plunge

Analyst Upgrades and Downgrades

Several research analysts have issued reports on the stock. Wall Street Zen lowered shares of Marzetti from a “buy” rating to a “hold” rating in a report on Saturday, January 31st. Weiss Ratings reissued a “hold (c)” rating on shares of Marzetti in a research note on Friday, January 9th. DA Davidson restated a “neutral” rating and issued a $184.00 target price on shares of Marzetti in a report on Wednesday. Finally, Stephens decreased their price target on Marzetti from $190.00 to $180.00 and set an “equal weight” rating for the company in a report on Wednesday. One analyst has rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $188.00.

Hedge Funds Weigh In On Marzetti

Several institutional investors have recently made changes to their positions in the stock. Oregon Public Employees Retirement Fund bought a new position in shares of Marzetti during the 4th quarter worth about $668,000. Independent Advisor Alliance acquired a new position in Marzetti during the 4th quarter worth approximately $235,000. Atlantic Union Bankshares Corp bought a new position in Marzetti in the fourth quarter worth approximately $137,000. HighPoint Advisor Group LLC acquired a new stake in Marzetti in the fourth quarter valued at approximately $207,000. Finally, First National Advisers LLC acquired a new stake in Marzetti in the fourth quarter valued at approximately $393,000. Institutional investors and hedge funds own 66.44% of the company’s stock.

Marzetti Price Performance

The company has a fifty day moving average price of $166.36 and a 200 day moving average price of $171.07. The stock has a market cap of $4.28 billion, a P/E ratio of 23.81 and a beta of 0.39.

Marzetti Company Profile

Lancaster Colony Corporation engages in the manufacturing and marketing of specialty food products for the retail and foodservice channels in the United States. It operates in two segments, Retail and Foodservice. The company offers frozen garlic bread under the New York BRAND Bakery; frozen Parkerhouse style yeast and dinner rolls under the Sister Schubert's brand; salad dressings under the Marzetti, Simply Dressed, Cardini's, and Girard's brands; vegetable and fruit dips under the Marzetti brand; croutons and salad toppings under the New York BRAND Bakery, Chatham Village, and Marzetti brands; and frozen pasta under the Marzetti Frozen Pasta brand.