J. M. Smucker (NYSE:SJM) Hits New 52-Week Low - Here's Why

On Wednesday, shares of The J. M. Smucker Company (NYSE:SJM) reached a new 52-week low, trading at $100.72 before closing at $100.77. The trading volume was notable, with 231,617 shares exchanged compared to the previous close of $101.91.

Recent Analyst Ratings

Several analysts have recently updated their ratings on J. M. Smucker shares. Stifel Nicolaus downgraded the stock from a "buy" rating to a "hold" rating, adjusting their price target from $135.00 down to $125.00. In a subsequent note from Barclays, the target price was lowered from $126.00 to $123.00, maintaining an "equal weight" rating. On the other hand, Wells Fargo & Company raised their price target from $130.00 to $135.00, rating the stock as "overweight." TD Cowen reduced their rating from "buy" to "hold" and lowered their price objective to $121.00. StockNews.com upgraded the company from a "sell" rating to a "hold" as of September 30. To summarize, there is one sell rating, seven hold ratings, and three buy ratings from analysts, resulting in a consensus rating of "Hold" with a target price of around $127.33 according to MarketBeat.com.

Stock Performance and Financial Metrics

J. M. Smucker shares have experienced a slight decline of 0.4%. The company boasts a market capitalization of approximately $10.87 billion, with a price-to-earnings (P/E) ratio of 20.68 and a P/E growth (P/E/G) ratio of 3.08. Furthermore, the company has a beta of 0.28, indicating relatively low volatility. Their fifty-day moving average stands at $111.57, while their 200-day moving average is $115.44. In terms of financial health, J. M. Smucker has a debt-to-equity ratio of 0.89, a quick ratio of 0.27, and a current ratio of 0.58.

Quarterly Earnings Report

The company announced its quarterly earnings results on November 26, reporting earnings per share (EPS) of $2.76, surpassing expectations of $2.51 by $0.25. J. M. Smucker had a net margin of 5.96% and a return on equity of 14.35%. Revenue for the quarter reached $2.27 billion, aligning with market estimates, marking a 17.2% increase year-over-year from the previous year’s figure of $2.59 EPS. Analysts predict that J. M. Smucker will post earnings of $9.89 per share for the current fiscal year.

Dividend Declaration

The company also announced a quarterly dividend, which was paid on December 2. Shareholders recorded on November 15 received a dividend of $1.08 per share, amounting to an annualized dividend of $4.32 and a yield of 4.23%. Currently, J. M. Smucker's dividend payout ratio is 87.45%, indicating how much of its earnings are distributed to shareholders.

Insider Sales

In other news regarding J. M. Smucker, CFO Tucker H. Marshall sold 994 shares of the company’s stock on December 17 for an average price of $113.00. This total transaction was approximately $112,322. Following this sale, Marshall holds 18,734 shares valued at roughly $2,116,942, representing a 5.04% decrease in his holdings. Disclosure regarding the sale was filed with the SEC.

Institutional Investments

Recent activity among institutional investors reflects growing interest in J. M. Smucker. Acadian Asset Management LLC increased its holdings by 342.8% in the second quarter, amassing 4,468 shares valued at $485,000 after acquiring 3,459 additional shares. Similarly, Quest Partners LLC enhanced its stake by 2,347.1%, now owning 416 shares valued at $45,000. Other investors like Choreo LLC and Envestnet Asset Management Inc. have also acquired or increased stakes during this period. Overall, institutional investors currently control 81.66% of J. M. Smucker’s stock.

Company Overview

The J. M. Smucker Company specializes in manufacturing and marketing branded food and beverage products globally. It operates mainly in three segments: U.S. Retail Pet Foods, U.S. Retail Coffee, and U.S. Retail Consumer Foods, producing a range of items including coffee, peanut butter, fruit spreads, syrups, frozen foods, and pet food.

Conclusion

The recent performance and analyst ratings of J. M. Smucker suggest it is in a challenging position. As investors assess the stock, they should consider both the company’s financial health and external market factors.

stocks, market, analysis