International Flavors & Fragrances Inc. (NYSE:IFF) Receives Consensus Rating of "Moderate Buy" from Brokerages

Key Points

• Analysts maintain a “Moderate Buy” consensus on IFF, with 12 buy, six hold and one sell rating among 19 firms. The average 12-month price target is $91.40, above the reported opening price of $86.50.
• IFF’s latest quarterly results fell short of expectations, with adjusted earnings of $0.82 per share versus the $1.07 consensus and revenue of $1.95 billion versus estimates of $2.62 billion.
• The company authorized a $2.5 billion share buyback, covering up to 12.1% of outstanding shares, and declared a quarterly dividend of $0.40 per share, equivalent to a 1.8% annualized yield.

Shares of International Flavors & Fragrances Inc. (NYSE:IFF - Get Free Report) have earned an average recommendation of "Moderate Buy" from the nineteen research firms that are currently covering the stock, Marketbeat reports. One analyst has rated the stock with a sell recommendation, six have given a hold recommendation and twelve have issued a buy recommendation on the company. The average 12 month price target among analysts that have covered the stock in the last year is $91.40.

Several research analysts have weighed in on IFF shares. Deutsche Bank Aktiengesellschaft lowered their price objective on shares of International Flavors & Fragrances from $95.00 to $90.00 and set a "buy" rating on the stock in a report on Monday, June 1st. Zacks Research downgraded shares of International Flavors & Fragrances from a "hold" rating to a "strong sell" rating in a research report on Thursday, August 6th. Barclays upped their target price on shares of International Flavors & Fragrances from $90.00 to $96.00 and gave the stock an "overweight" rating in a report on Friday, August 7th. Citigroup dropped their price target on shares of International Flavors & Fragrances from $96.00 to $88.00 and set a "buy" rating on the stock in a research report on Wednesday, June 24th. Finally, Wall Street Zen downgraded International Flavors & Fragrances from a "hold" rating to a "sell" rating in a research note on Saturday, August 8th.

International Flavors & Fragrances Trading Up 0.0%

Shares of International Flavors & Fragrances stock opened at $86.50 on Friday. The stock has a market capitalization of $22.07 billion, a PE ratio of 79.36, a price-to-earnings-growth ratio of 3.37 and a beta of 0.94. International Flavors & Fragrances has a 52 week low of $59.14 and a 52 week high of $89.32. The stock has a 50 day moving average price of $81.64 and a two-hundred day moving average price of $77.07. The company has a debt-to-equity ratio of 0.34, a quick ratio of 1.72 and a current ratio of 2.06.

International Flavors & Fragrances (NYSE:IFF - Get Free Report) last issued its earnings results on Tuesday, August 4th. The specialty chemicals company reported $0.82 earnings per share for the quarter, missing analysts' consensus estimates of $1.07 by ($0.25). International Flavors & Fragrances had a return on equity of 7.11% and a net margin of 2.78%.The firm had revenue of $1.95 billion for the quarter, compared to analyst estimates of $2.62 billion. During the same period in the previous year, the company earned $1.15 earnings per share. International Flavors & Fragrances's revenue for the quarter was up 1.8% compared to the same quarter last year. As a group, equities analysts anticipate that International Flavors & Fragrances will post 3.08 earnings per share for the current fiscal year.

International Flavors & Fragrances declared that its Board of Directors has initiated a stock buyback plan on Tuesday, August 4th that authorizes the company to buyback $2.50 billion in outstanding shares. This buyback authorization authorizes the specialty chemicals company to reacquire up to 12.1% of its shares through open market purchases. Shares buyback plans are typically an indication that the company's leadership believes its shares are undervalued.

International Flavors & Fragrances Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, October 9th. Investors of record on Friday, September 18th will be given a dividend of $0.40 per share. The ex-dividend date of this dividend is Friday, September 18th. This represents a $1.60 annualized dividend and a dividend yield of 1.8%. International Flavors & Fragrances's payout ratio is presently 146.79%.

Insider Buying and Selling

In related news, EVP Michael Deveau sold 8,825 shares of the stock in a transaction on Thursday, August 6th. The stock was sold at an average price of $85.55, for a total value of $754,978.75. Following the completion of the sale, the executive vice president directly owned 5,199 shares of the company's stock, valued at approximately $444,774.45. This represents a 62.93% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider De Mendonca Ana Paula Teles sold 5,718 shares of the firm's stock in a transaction on Monday, August 17th. The shares were sold at an average price of $83.19, for a total value of $475,680.42. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 15,543 shares of company stock worth $1,315,659. 1.07% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On International Flavors & Fragrances

A number of institutional investors have recently added to or reduced their stakes in IFF. Swiss Life Asset Management Ltd lifted its holdings in International Flavors & Fragrances by 117.0% during the fourth quarter. Swiss Life Asset Management Ltd now owns 148,377 shares of the specialty chemicals company's stock worth $9,999,000 after acquiring an additional 80,014 shares during the period. First Eagle Investment Management LLC grew its stake in International Flavors & Fragrances by 27.5% in the 4th quarter. First Eagle Investment Management LLC now owns 8,831,668 shares of the specialty chemicals company's stock valued at $595,166,000 after purchasing an additional 1,904,598 shares during the period. Vaughan Nelson Investment Management L.P. increased its position in shares of International Flavors & Fragrances by 38.6% during the 1st quarter. Vaughan Nelson Investment Management L.P. now owns 784,570 shares of the specialty chemicals company's stock valued at $56,921,000 after purchasing an additional 218,420 shares during the last quarter. Staley Capital Advisers Inc. increased its position in shares of International Flavors & Fragrances by 13.8% during the 4th quarter. Staley Capital Advisers Inc. now owns 976,453 shares of the specialty chemicals company's stock valued at $65,803,000 after purchasing an additional 118,475 shares during the last quarter. Finally, Ilmarinen Mutual Pension Insurance Co bought a new stake in shares of International Flavors & Fragrances during the 4th quarter worth $3,370,000. 96.02% of the stock is owned by institutional investors.

About International Flavors & Fragrances

International Flavors & Fragrances Inc NYSE: IFF is a global leader in the creation and production of flavors, fragrances, cosmetic actives and nutritional lipids. The company develops taste and scent solutions for a wide array of end markets including food and beverage, personal care, household goods and pharmaceutical products. Its portfolio spans natural and nature-identical flavors, fine fragrances, functional ingredients for skin and hair care, and specialty oils that enhance nutritional value and sensory appeal.

IFF's research and development network comprises innovation centers in North America, Europe, Asia-Pacific and Latin America, where multidisciplinary teams collaborate on aroma chemistry, sensory science and biotechnology.

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