J M Smucker (NYSE:SJM) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Wednesday.
According to Zacks, “Smucker’s shares have underperformed the industry in the past three months, thanks to a dismal earnings surprise history. We note that the company’s performance in second-quarter fiscal 2019 was weighed down by negative impacts stemming from the divestiture of the U.S. baking business. This along with rising freight expenses and timing shifts in acquisition synergies compelled management to curtail outlook for fiscal 2019. In fact, high freight costs marred profitability in the U.S. Retail Pet Foods unit in the second quarter, while lower net price realization weighed on performance of Coffee and International units. Further, interest and SG&A expenses have been high in the past few quarters, which is a concern. Nevertheless, the Ainsworth buyout is strengthening the pet foods unit and driving the top line. Additionally, management is on track with innovation and brand building to boost portfolio.”
A number of other equities research analysts have also recently weighed in on the company. Credit Suisse Group set a $95.00 price objective on J M Smucker and gave the company a “sell” rating in a research note on Friday, September 21st. Wolfe Research cut J M Smucker from a “peer perform” rating to an “underperform” rating in a research note on Wednesday, September 26th. Barclays reissued a “hold” rating and set a $103.00 target price on shares of J M Smucker in a research note on Sunday, December 2nd. Bank of America reissued a “neutral” rating and set a $106.00 target price on shares of J M Smucker in a research note on Wednesday, October 3rd. Finally, ValuEngine raised J M Smucker from a “sell” rating to a “hold” rating in a research note on Monday, October 22nd. Five equities research analysts have rated the stock with a sell rating, six have issued a hold rating and four have assigned a buy rating to the stock. The stock presently has an average rating of “Hold” and a consensus price target of $117.33.
J M Smucker (NYSE:SJM) last issued its quarterly earnings data on Wednesday, November 28th. The company reported $2.17 earnings per share for the quarter, missing the Zacks’ consensus estimate of $2.29 by ($0.12). J M Smucker had a net margin of 17.59% and a return on equity of 12.03%. The firm had revenue of $2.02 billion during the quarter, compared to analyst estimates of $2.05 billion. During the same period in the previous year, the firm posted $2.02 earnings per share. The company’s quarterly revenue was up 5.1% compared to the same quarter last year. As a group, research analysts anticipate that J M Smucker will post 7.99 EPS for the current year.
In related news, SVP Jeannette L. Knudsen sold 1,500 shares of the business’s stock in a transaction on Monday, September 10th. The stock was sold at an average price of $110.74, for a total transaction of $166,110.00. Following the completion of the transaction, the senior vice president now directly owns 26,224 shares of the company’s stock, valued at approximately $2,904,045.76. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 3.92% of the company’s stock.
Large investors have recently added to or reduced their stakes in the company. Tandem Investment Advisors Inc. boosted its position in shares of J M Smucker by 6.6% during the 3rd quarter. Tandem Investment Advisors Inc. now owns 122,790 shares of the company’s stock worth $12,599,000 after acquiring an additional 7,633 shares in the last quarter. Ariel Investments LLC lifted its holdings in shares of J M Smucker by 6.6% in the 2nd quarter. Ariel Investments LLC now owns 1,767,460 shares of the company’s stock valued at $189,967,000 after purchasing an additional 108,828 shares during the last quarter. Raymond James & Associates lifted its holdings in shares of J M Smucker by 3.4% in the 2nd quarter. Raymond James & Associates now owns 162,046 shares of the company’s stock valued at $17,418,000 after purchasing an additional 5,289 shares during the last quarter. Sequoia Financial Advisors LLC lifted its holdings in shares of J M Smucker by 41.4% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 21,900 shares of the company’s stock valued at $2,354,000 after purchasing an additional 6,414 shares during the last quarter. Finally, Connor Clark & Lunn Investment Management Ltd. purchased a new stake in shares of J M Smucker in the 2nd quarter valued at about $430,000. 79.44% of the stock is owned by institutional investors and hedge funds.
About J M Smucker
The J. M. Smucker Company manufactures and markets branded food and beverage products worldwide. It operates in four segments: U.S. Retail Coffee, U.S. Retail Consumer Foods, U.S. Retail Pet Foods, and International and Away From Home. The company primarily offers coffee, pet food and pet snacks, peanut butter, fruit spreads, shortening and oils, baking mixes and ready-to-spread frostings, frozen sandwiches, flour and baking ingredients, juices and beverages, and portion control products.
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