The J. M. Smucker Company (NYSE:SJM) Given Consensus Rating of "Moderate Buy" by Brokerages

Key Points

• Analysts rate J. M. Smucker “Moderate Buy,” with 10 buy ratings and 9 holds; the average 12-month price target is approximately $125.53, while several firms recently raised their targets to as high as $140.
• The company exceeded quarterly expectations, reporting $2.77 EPS versus the $2.64 consensus and $2.27 billion in revenue, up 5.8% year over year.
• Smucker increased its quarterly dividend from $1.10 to $1.12 per share, equivalent to a $4.48 annual payout and a 3.6% yield; meanwhile, insiders sold more than $2.1 million of shares over the past 90 days.

The J. M. Smucker Company (NYSE:SJM - Get Free Report) has received an average recommendation of "Moderate Buy" from the nineteen analysts that are covering the firm, Marketbeat.com reports. Nine research analysts have rated the stock with a hold recommendation and ten have given a buy recommendation to the company. The average 12 month price target among brokerages that have issued ratings on the stock in the last year is $125.5294.

A number of research firms have recently commented on SJM. HC Wainwright set a $123.00 target price on shares of J. M. Smucker in a report on Wednesday, August 19th. JPMorgan Chase & Co. lifted their price target on shares of J. M. Smucker from $125.00 to $139.00 and gave the company an "overweight" rating in a report on Friday, August 14th. Sanford C. Bernstein reiterated an "outperform" rating and set a $137.00 price objective on shares of J. M. Smucker in a research report on Wednesday, June 10th. Jefferies Financial Group increased their price objective on shares of J. M. Smucker from $129.00 to $140.00 and gave the company a "buy" rating in a research note on Wednesday, August 19th. Finally, Evercore restated an "outperform" rating and issued a $125.00 target price on shares of J. M. Smucker in a research report on Thursday, July 23rd.

J. M. Smucker Stock Up 1.2%

NYSE SJM opened at $125.87 on Tuesday. The business has a fifty day moving average price of $116.32 and a two-hundred day moving average price of $107.54. The stock has a market capitalization of $13.43 billion, a PE ratio of -96.82, a PEG ratio of 1.68 and a beta of 0.25. J. M. Smucker has a fifty-two week low of $88.25 and a fifty-two week high of $127.64. The company has a debt-to-equity ratio of 1.15, a current ratio of 0.78 and a quick ratio of 0.33.

J. M. Smucker (NYSE:SJM - Get Free Report) last issued its quarterly earnings results on Tuesday, June 9th. The company reported $2.77 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.64 by $0.13. J. M. Smucker had a positive return on equity of 17.18% and a negative net margin of 1.53%.The company had revenue of $2.27 billion for the quarter, compared to analyst estimates of $2.26 billion. During the same quarter last year, the company posted $2.31 EPS. The company's revenue for the quarter was up 5.8% compared to the same quarter last year. J. M. Smucker has set its FY 2027 guidance at 9.750-10.250 EPS. Equities analysts expect that J. M. Smucker will post 9.98 earnings per share for the current fiscal year.

J. M. Smucker Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 1st. Investors of record on Friday, August 14th will be issued a dividend of $1.12 per share. This is a positive change from J. M. Smucker's previous quarterly dividend of $1.10. The ex-dividend date of this dividend is Friday, August 14th. This represents a $4.48 annualized dividend and a dividend yield of 3.6%. J. M. Smucker's dividend payout ratio (DPR) is -344.62%.

Insider Buying and Selling

In other J. M. Smucker news, insider Jill R. Penrose sold 5,000 shares of the company's stock in a transaction dated Monday, June 29th. The stock was sold at an average price of $116.69, for a total value of $583,450.00. Following the completion of the transaction, the insider owned 15,795 shares of the company's stock, valued at $1,843,118.55. This represents a 24.04% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Jeannette L. Knudsen sold 4,353 shares of the stock in a transaction dated Friday, June 26th. The shares were sold at an average price of $115.08, for a total value of $500,943.24. Following the completion of the transaction, the insider owned 16,835 shares of the company's stock, valued at $1,937,371.80. This represents a 20.54% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 18,533 shares of company stock worth $2,132,914 in the last 90 days. Insiders own 2.80% of the company's stock.

Institutional Investors Weigh In On J. M. Smucker

Several hedge funds have recently added to or reduced their stakes in the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in J. M. Smucker by 10.0% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 19,440 shares of the company's stock worth $2,286,000 after acquiring an additional 1,763 shares during the last quarter. United Services Automobile Association bought a new position in shares of J. M. Smucker during the first quarter valued at $253,000. Empowered Funds LLC raised its stake in shares of J. M. Smucker by 28.6% during the first quarter. Empowered Funds LLC now owns 12,992 shares of the company's stock valued at $1,538,000 after acquiring an additional 2,889 shares during the last quarter. Woodline Partners LP lifted its holdings in shares of J. M. Smucker by 40.7% during the first quarter. Woodline Partners LP now owns 8,990 shares of the company's stock worth $1,065,000 after purchasing an additional 2,600 shares during the period. Finally, American Century Companies Inc. lifted its holdings in shares of J. M. Smucker by 6.7% during the second quarter. American Century Companies Inc. now owns 2,209 shares of the company's stock worth $217,000 after purchasing an additional 138 shares during the period. 81.66% of the stock is currently owned by institutional investors and hedge funds.

J. M. Smucker Company Profile

The J. M. Smucker Company is a diversified food and beverage manufacturer and marketer known for a portfolio of well-established consumer brands. The company's main business activities include the production and distribution of fruit spreads, peanut butter, coffee and coffee filters, as well as pet food and pet snacks. Smucker's core product lines serve both retail and foodservice customers through grocery chains, mass merchandisers, club stores, convenience outlets and e-commerce channels.

Among its leading brands are Smucker's® fruit spreads, Jif® peanut butter, Folgers® and Dunkin'® coffees, and Café Bustelo® coffee.

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