Covea Finance Acquires $31.74 Million Stake in McCormick & Company

Covea Finance has taken a new position in McCormick & Company, Incorporated (NYSE:MKC) during the third quarter of the year, as revealed in its latest 13F filing with the Securities & Exchange Commission. The firm acquired 385,660 shares of the company, which amounts to a total investment of approximately $31,740,000. This investment represents about 1.4% of Covea Finance's overall portfolio, making McCormick its 24th largest holding. At the conclusion of the most recent quarter, Covea Finance held 0.14% of McCormick & Company’s shares.

Investment Activity from Other Firms

Other large investors have also made adjustments to their holdings in McCormick & Company. For instance, Capital Advisors Ltd. LLC increased its stake in the company by 87.5% during the second quarter, now owning 375 shares valued at approximately $27,000 after acquiring an additional 175 shares. OFI Invest Asset Management also entered McCormick & Company during the second quarter with a stake valued at approximately $29,000. Furthermore, 1620 Investment Advisors Inc. and Strategic Investment Solutions Inc. both acquired new positions valued at around $35,000 and $39,000, respectively. Farmers & Merchants Investments Inc. raised its position by 40.3%, increasing its holdings by 228 shares, bringing its total to 794 shares worth $56,000. Overall, institutional investors now own approximately 79.74% of McCormick & Company's stock.

Insider Trading Activity

In related news, Director Lawrence Erik Kurzius sold 25,000 shares of McCormick & Company on July 17th for an average price of $75.00 each, totaling $1,875,000. As a result of this sale, Kurzius now owns 199,258 shares, valued at about $14,944,350, marking a negligible change in his overall position in the company. This transaction has been disclosed in a filing with the Securities & Exchange Commission, with insiders currently holding 22.90% of the stock.

Stock Performance Overview

As of midday trading on Friday, shares of McCormick & Company were priced at $80.18, having risen by $0.40. The trading volume was 1,550,375 shares, less than the average of 1,941,787 shares. The company's stock has a one-year low of $59.13 and a high of $85.49. Financially, McCormick holds a market cap of $21.54 billion, a debt-to-equity ratio of 0.61, and a current ratio of 0.71. McCormick's price-to-earnings (P/E) ratio stands at 29.26, and its beta is 0.77.

Recently, McCormick & Company reported its quarterly earnings on October 1st. The company announced earnings of $0.83 per share, exceeding analysts' expectations of $0.68 by $0.15. Revenue for the quarter reached $1.68 billion, slightly ahead of the forecast of $1.67 billion, although this represents a 0.3% decline compared to the same quarter last year. Analysts predict an average earnings per share of 2.92 for the current year.

Recent Dividend Announcement

The company also announced a quarterly dividend of $0.42 per share, payable on October 21st to shareholders of record as of October 7th. This dividend marks an annualized yield of 2.10%, with a payout ratio of 61.31%.

Changes in Analyst Ratings

Several research analysts have updated their ratings for McCormick & Company. Stifel Nicolaus raised its price target from $75.00 to $85.00 while maintaining a “hold” rating. Bank of America also increased its target from $95.00 to $96.00 and offered a “buy” rating. TD Cowen raised its price objective from $84.00 to $86.00 while retaining a “hold” rating, and BNP Paribas upgraded the stock to a “strong-buy” status. Currently, one analyst rates the stock as a sell, five as holds, two as buys, and one as a strong buy, leading to an average rating of “hold” with a consensus target price of $79.57.

Company Overview

McCormick & Company, Incorporated is a global leader in the manufacture and distribution of spices, seasoning mixes, condiments, and other flavor products tailored for the food industry. Its operations are divided into two main segments: Consumer and Flavor Solutions. The Consumer segment includes a variety of spices, herbs, and seasonings, alongside condiments, sauces, and dessert products.

Conclusion

The recent investments and company performance highlight McCormick & Company's significance in the market. With consistent growth and renewed interest from institutional investors, the company appears to be on a stable path as it continues to respond to dynamic market demands.

Covea, Investment, McCormick