Zacks Investment Research cut shares of J.M. Smucker Co. (NYSE:SJM) from a hold rating to a sell rating in a research report report published on Tuesday morning.
According to Zacks, “Estimates have been declining ahead of Smucker’s second quarter fiscal 2017 results. Though the company remains focused on improving the performance of the mainstream dog and cat brands, heightened competition in the pet food business in the near term remains a concern. Sluggish pet food sales also led to a cut in sales outlook for fiscal 2017. Currency headwinds and the divestiture of the U.S. canned milk business also hurt sales growth. Nevertheless, we are impressed with the company’s strong organic sales growth, product innovation and constant efforts to expand through acquisitions. The company also remains optimistic on the company’s innovation program. Lower coffee costs would also add to the profits.”
A number of other brokerages have also recently weighed in on SJM. Jefferies Group dropped their price objective on shares of J.M. Smucker from $143.00 to $135.00 and set a hold rating for the company in a report on Wednesday, October 12th. Citigroup Inc. reiterated a buy rating on shares of J.M. Smucker in a report on Thursday, August 25th. Credit Suisse Group AG cut shares of J.M. Smucker from an outperform rating to a neutral rating and lowered their price target for the stock from $158.00 to $145.00 in a report on Tuesday, September 27th. Hilliard Lyons upgraded shares of J.M. Smucker from an underperform rating to a neutral rating in a report on Thursday, September 22nd. Finally, JPMorgan Chase & Co. reiterated a focus list rating on shares of J.M. Smucker in a report on Tuesday, October 4th. Two analysts have rated the stock with a sell rating, eight have assigned a hold rating, three have issued a buy rating and one has given a strong buy rating to the company’s stock. The stock currently has a consensus rating of Hold and a consensus target price of $146.00.
Shares of J.M. Smucker (NYSE:SJM) opened at 131.92 on Tuesday. J.M. Smucker has a 12-month low of $111.01 and a 12-month high of $157.31. The stock has a 50 day moving average of $134.06 and a 200-day moving average of $139.38. The company has a market capitalization of $15.36 billion, a P/E ratio of 21.69 and a beta of 0.53.
J.M. Smucker (NYSE:SJM) last announced its quarterly earnings data on Tuesday, August 23rd. The company reported $1.86 earnings per share for the quarter, beating analysts’ consensus estimates of $1.74 by $0.12. The firm earned $1.82 billion during the quarter. J.M. Smucker had a net margin of 9.41% and a return on equity of 11.76%. The company’s revenue for the quarter was down 7.0% on a year-over-year basis. During the same quarter last year, the firm posted $1.32 EPS. Equities research analysts forecast that J.M. Smucker will post $7.68 EPS for the current year.
The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 1st. Investors of record on Friday, November 11th will be given a $0.75 dividend. The ex-dividend date of this dividend is Tuesday, November 8th. This represents a $3.00 annualized dividend and a yield of 2.27%. J.M. Smucker’s dividend payout ratio (DPR) is 49.26%.
A number of institutional investors have recently made changes to their positions in the stock. Ownership Capital B.V. boosted its position in shares of J.M. Smucker by 15.0% in the second quarter. Ownership Capital B.V. now owns 364,387 shares of the company’s stock valued at $55,536,000 after buying an additional 47,638 shares in the last quarter. Legal & General Group Plc boosted its position in shares of J.M. Smucker by 3.5% in the first quarter. Legal & General Group Plc now owns 481,815 shares of the company’s stock valued at $62,559,000 after buying an additional 16,215 shares in the last quarter. Fundsmith LLP boosted its position in shares of J.M. Smucker by 68.3% in the second quarter. Fundsmith LLP now owns 3,450,789 shares of the company’s stock valued at $525,935,000 after buying an additional 1,399,810 shares in the last quarter. Renaissance Technologies LLC boosted its position in shares of J.M. Smucker by 127.6% in the first quarter. Renaissance Technologies LLC now owns 330,303 shares of the company’s stock valued at $42,887,000 after buying an additional 185,200 shares in the last quarter. Finally, Sumitomo Mitsui Trust Holdings Inc. boosted its position in shares of J.M. Smucker by 1.5% in the second quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 335,843 shares of the company’s stock valued at $51,186,000 after buying an additional 4,894 shares in the last quarter. 75.62% of the stock is currently owned by institutional investors.
About J.M. Smucker
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.