J.M. Smucker Company (The) (SJM) Cut to “Sell” at Zacks Investment Research
Zacks Investment Research downgraded shares of J.M. Smucker Company (The) (NYSE:SJM) from a hold rating to a sell rating in a report published on Tuesday morning.
According to Zacks, “Smucker posted disappointing first-quarter fiscal 2018 results wherein both the top and bottom lines lagged estimates. Earnings declined 19% year over year due to planned increases in commodity costs and marketing expense. Net sales in the quarter declined 4% year over year on account of lower volume/mix, notably in its coffee segment. This marked the fifth straight quarter of sales decline in its coffee business. Moreover the company expects lower pricing in U.S. Retail Coffee to negatively impact profits in the remainder of fiscal 2018. Moreover, the Pet Foods segment also did not depict significant growth during the quarter owing to unfavorable cost to price relationship combined with high marketing expenses. Owing to such factors, Smucker’s shares have underperformed the industry over the past six months. Nevertheless, the company has resorted to cost cuts amid the tough industry conditions to uplift its performance”
A number of other equities research analysts have also weighed in on the stock. BidaskClub lowered shares of J.M. Smucker Company (The) from a sell rating to a strong sell rating in a report on Saturday, August 26th. Citigroup Inc. dropped their price objective on shares of J.M. Smucker Company (The) from $155.00 to $133.00 and set a buy rating on the stock in a report on Friday, August 25th. Morgan Stanley reissued a sell rating and set a $108.00 price objective (down from $114.00) on shares of J.M. Smucker Company (The) in a report on Friday, August 25th. Credit Suisse Group set a $110.00 price target on shares of J.M. Smucker Company (The) and gave the company a hold rating in a report on Friday, August 25th. Finally, J P Morgan Chase & Co lowered shares of J.M. Smucker Company (The) from an overweight rating to a neutral rating and lowered their price target for the company from $135.00 to $116.00 in a report on Thursday, August 24th. Four analysts have rated the stock with a sell rating, six have given a hold rating and three have given a buy rating to the company. The company currently has an average rating of Hold and a consensus price target of $126.73.
J.M. Smucker Company (SJM) traded up 0.37% during trading on Tuesday, hitting $105.15. The stock had a trading volume of 113,520 shares. J.M. Smucker Company has a 12 month low of $104.50 and a 12 month high of $143.68. The stock has a market cap of $11.93 billion, a price-to-earnings ratio of 22.09 and a beta of 0.62. The firm has a 50 day moving average of $118.06 and a 200-day moving average of $126.46.
J.M. Smucker Company (The) (NYSE:SJM) last announced its quarterly earnings data on Thursday, August 24th. The company reported $1.51 earnings per share for the quarter, missing analysts’ consensus estimates of $1.61 by $0.10. The company had revenue of $1.75 billion for the quarter, compared to analysts’ expectations of $1.81 billion. J.M. Smucker Company (The) had a net margin of 7.50% and a return on equity of 12.06%. J.M. Smucker Company (The)’s quarterly revenue was down 3.7% compared to the same quarter last year. During the same period last year, the firm earned $1.86 earnings per share. Equities analysts predict that J.M. Smucker Company will post $7.74 earnings per share for the current year.
The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 1st. Shareholders of record on Friday, August 11th will be given a $0.78 dividend. The ex-dividend date is Wednesday, August 9th. This represents a $3.12 dividend on an annualized basis and a dividend yield of 2.98%. This is an increase from J.M. Smucker Company (The)’s previous quarterly dividend of $0.75. J.M. Smucker Company (The)’s dividend payout ratio is 65.55%.
In other news, Director Sandra Pianalto acquired 250 shares of the firm’s stock in a transaction on Tuesday, June 27th. The stock was acquired at an average price of $120.61 per share, for a total transaction of $30,152.50. Following the completion of the transaction, the director now owns 250 shares in the company, valued at approximately $30,152.50. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Richard K. Smucker acquired 10,000 shares of the firm’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 transaction, the insider now owns 652,168 shares of the company’s stock, valued at approximately $68,738,507.20. The disclosure for this purchase can be found here. In the last quarter, insiders sold 16,030 shares of company stock valued at $1,948,195. Insiders own 3.50% of the company’s stock.
Hedge funds and other institutional investors have recently modified their holdings of the company. Vanguard Group Inc. increased its position in shares of J.M. Smucker Company (The) by 2.2% in the second quarter. Vanguard Group Inc. now owns 12,209,001 shares of the company’s stock worth $1,444,691,000 after buying an additional 265,451 shares during the period. BlackRock Inc. increased its position in shares of J.M. Smucker Company (The) by 7.6% in the second quarter. BlackRock Inc. now owns 8,162,040 shares of the company’s stock worth $965,814,000 after buying an additional 578,984 shares during the period. State Street Corp increased its position in shares of J.M. Smucker Company (The) by 0.9% in the second quarter. State Street Corp now owns 5,496,377 shares of the company’s stock worth $650,374,000 after buying an additional 49,959 shares during the period. Wells Fargo & Company MN increased its position in shares of J.M. Smucker Company (The) by 9.7% in the first quarter. Wells Fargo & Company MN now owns 3,777,859 shares of the company’s stock worth $495,201,000 after buying an additional 334,989 shares during the period. Finally, FMR LLC increased its position in shares of J.M. Smucker Company (The) by 17.1% in the second quarter. FMR LLC now owns 2,352,150 shares of the company’s stock worth $278,330,000 after buying an additional 343,013 shares during the period. Institutional investors and hedge funds own 73.54% of the company’s stock.
About J.M. Smucker Company (The)
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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