International Flavors & Fragrances (NYSE:IFF) Reaches New 12-Month High – Time to Buy?

International Flavors & Fragrances Inc. (NYSE:IFF)’s share price hit a new 52-week high during trading on Wednesday. The stock traded as high as $89.46 and last traded at $89.5890, with a volume of 1,037,786 shares. The stock had previously closed at $88.20.

Analyst Ratings Changes

A number of research analysts have recently weighed in on IFF shares. Zacks Research upgraded International Flavors & Fragrances from a “strong sell” rating to a “hold” rating in a report on Monday, September 21st. KeyCorp assumed coverage on International Flavors & Fragrances in a report on Thursday, September 10th. They set a “sector weight” rating for the company. Benchmark increased their price target on International Flavors & Fragrances from $100.00 to $105.00 and gave the company a “buy” rating in a research report on Thursday, August 6th. Citigroup lowered their price target on International Flavors & Fragrances from $101.00 to $100.00 and set a “buy” rating for the company in a research report on Wednesday, October 7th. Finally, Vertical Research cut International Flavors & Fragrances from a “buy” rating to a “hold” rating and set a $93.00 price objective on the stock. in a research note on Thursday, August 6th. Twelve investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat, International Flavors & Fragrances has a consensus rating of “Moderate Buy” and a consensus price target of $92.69.

International Flavors & Fragrances Stock Performance

The company’s 50-day simple moving average is $84.92 and its 200 day simple moving average is $78.84. The stock has a market cap of $22.78 billion, a P/E ratio of 82.10, a PEG ratio of 3.29 and a beta of 0.91. The company has a current ratio of 2.06, a quick ratio of 1.72 and a debt-to-equity ratio of 0.34.

International Flavors & Fragrances (NYSE:IFF) last released its earnings results on Tuesday, August 4th. The specialty chemicals company reported $0.82 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.07 by ($0.25). The business had revenue of $1.95 billion during the quarter, compared to the consensus estimate of $2.62 billion. International Flavors & Fragrances had a net margin of 2.78% and a return on equity of 7.11%. The business’s revenue was up 1.8% on a year-over-year basis. During the same period in the prior year, the company earned $1.15 earnings per share. As a group, sell-side analysts expect that International Flavors & Fragrances Inc. will post 3.09 EPS for the current fiscal year.

International Flavors & Fragrances Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, October 9th. Shareholders of record on Friday, September 18th were paid a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a yield of 1.8%. The ex-dividend date was Friday, September 18th. International Flavors & Fragrances’s dividend payout ratio is 146.79%.

International Flavors & Fragrances declared that its Board of Directors has initiated a share repurchase plan on Tuesday, August 4th that allows the company to repurchase $2.50 billion in outstanding shares. This repurchase authorization allows the specialty chemicals company to repurchase up to 12.1% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s board believes its shares are undervalued.

Insider Activity

In related news, EVP Michael Deveau sold 8,825 shares of the business’s stock in a transaction dated Thursday, August 6th. The shares were sold at an average price of $85.55, for a total value of $754,978.75. Following the transaction, the executive vice president directly owned 5,199 shares of the company’s stock, valued at approximately $444,774.45. The trade was a 62.93% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider De Mendonca Ana Paula Teles sold 5,718 shares of the stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $83.19, for a total transaction of $475,680.42. The SEC filing for this sale provides additional information. Insiders sold a total of 15,543 shares of company stock valued at $1,315,659 in the last ninety days. 1.07% of the stock is currently owned by insiders.

Institutional Trading of International Flavors & Fragrances

Several hedge funds have recently added to or reduced their stakes in the stock. Korea Investment CORP purchased a new stake in International Flavors & Fragrances in the 2nd quarter worth approximately $3,170,000. Vaughan Nelson Investment Management L.P. grew its position in shares of International Flavors & Fragrances by 38.6% during the 1st quarter. Vaughan Nelson Investment Management L.P. now owns 784,570 shares of the specialty chemicals company’s stock valued at $56,921,000 after purchasing an additional 218,420 shares in the last quarter. Empowered Funds LLC purchased a new position in shares of International Flavors & Fragrances during the 2nd quarter valued at $3,203,000. Louisiana State Employees Retirement System bought a new position in shares of International Flavors & Fragrances in the first quarter worth $950,000. Finally, Murphy Pohlad Asset Management LLC bought a new position in shares of International Flavors & Fragrances in the second quarter worth $1,481,000. Institutional investors own 96.02% of the company’s stock.

About International Flavors & Fragrances

International Flavors & Fragrances Inc (NYSE:IFF) develops and manufactures ingredients and solutions used in food, beverages, personal care products, fragrances, household products, pharmaceuticals and other consumer goods. The company works with manufacturers to create flavors, fragrances, functional ingredients and sensory experiences for products sold under consumer brands.

IFF’s portfolio includes natural and synthetic flavor compounds, fragrance ingredients, specialty ingredients, food texturants, enzymes, cultures, probiotics and pharmaceutical excipients.