The J. M. Smucker Company (NYSE:SJM) Receives Consensus Rating of "Moderate Buy" from Analysts

Key Points

• Analysts have a “Moderate Buy” consensus on J. M. Smucker, with 10 buy ratings and seven holds. The average 12-month price target is $136.25, above the reported share price of $123.09.
• The company exceeded quarterly expectations, reporting $3.24 in EPS versus the $2.22 consensus and $2.22 billion in revenue, up 5% year over year. Analysts expect approximately $10.71 in EPS for the current year.
• Smucker raised its quarterly dividend to $1.12 per share, equivalent to a 3.6% annualized yield, while recent insider transactions showed executives selling shares totaling about $4.26 million.

Shares of The J. M. Smucker Company (NYSE:SJM - Get Free Report) have earned a consensus recommendation of "Moderate Buy" from the seventeen ratings firms that are covering the stock, MarketBeat reports. Seven analysts have rated the stock with a hold rating and ten have assigned a buy rating to the company. The average 12 month target price among analysts that have updated their coverage on the stock in the last year is $136.25.

A number of research analysts have weighed in on the stock. Morgan Stanley boosted their target price on shares of J. M. Smucker from $106.00 to $110.00 and gave the stock an "equal weight" rating in a research report on Wednesday, June 10th. Stifel Nicolaus set a $132.00 price target on J. M. Smucker in a research report on Thursday, August 27th. Royal Bank Of Canada lifted their price objective on J. M. Smucker from $135.00 to $150.00 and gave the stock an "outperform" rating in a research note on Tuesday, August 25th. Deutsche Bank Aktiengesellschaft set a $125.00 price objective on J. M. Smucker in a research report on Thursday, August 27th. Finally, Bank of America increased their target price on J. M. Smucker from $130.00 to $132.00 and gave the company a "buy" rating in a research note on Wednesday, June 10th.

J. M. Smucker Stock Down 0.5%

Shares of J. M. Smucker stock opened at $123.09 on Friday. The stock has a market capitalization of $13.15 billion, a P/E ratio of 57.52, a PEG ratio of 1.59 and a beta of 0.27. The company has a quick ratio of 0.35, a current ratio of 0.87 and a debt-to-equity ratio of 1.11. The stock has a 50 day moving average price of $121.40 and a two-hundred day moving average price of $109.72. J. M. Smucker has a 12-month low of $88.25 and a 12-month high of $135.89.

J. M. Smucker (NYSE:SJM - Get Free Report) last released its quarterly earnings results on Wednesday, August 26th. The company reported $3.24 EPS for the quarter, beating analysts' consensus estimates of $2.22 by $1.02. J. M. Smucker had a net margin of 2.51% and a return on equity of 19.85%. The company had revenue of $2.22 billion for the quarter, compared to analyst estimates of $2.13 billion. During the same quarter last year, the firm posted $1.90 earnings per share. The company's quarterly revenue was up 5.0% compared to the same quarter last year. J. M. Smucker has set its FY 2027 guidance at 10.500-11.000 EPS. Equities analysts expect that J. M. Smucker will post 10.71 earnings per share for the current year.

J. M. Smucker Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, September 1st. Stockholders of record on Friday, August 14th were given a $1.12 dividend. This is a positive change from J. M. Smucker's previous quarterly dividend of $1.10. This represents a $4.48 annualized dividend and a dividend yield of 3.6%. The ex-dividend date of this dividend was Friday, August 14th. J. M. Smucker's dividend payout ratio (DPR) is currently 209.35%.

Insider Activity at J. M. Smucker

In related news, insider Jill Penrose sold 5,000 shares of the business's stock in a transaction on Monday, June 29th. The shares were sold at an average price of $116.69, for a total transaction of $583,450.00. Following the transaction, the insider owned 15,795 shares of the company's stock, valued at approximately $1,843,118.55. The trade was a 24.04% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CFO Tucker Marshall sold 18,482 shares of the company's stock in a transaction on Friday, August 28th. The shares were sold at an average price of $132.05, for a total transaction of $2,440,548.10. Following the transaction, the chief financial officer owned 38,699 shares of the company's stock, valued at approximately $5,110,202.95. The trade was a 32.32% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 33,987 shares of company stock worth $4,261,991. Insiders own 2.80% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the stock. Dimensional Fund Advisors LP increased its stake in J. M. Smucker by 15.6% during the first quarter. Dimensional Fund Advisors LP now owns 3,920,718 shares of the company's stock valued at $378,102,000 after acquiring an additional 528,418 shares during the period. Capitolis Liquid Global Markets LLC lifted its position in shares of J. M. Smucker by 26.1% in the 4th quarter. Capitolis Liquid Global Markets LLC now owns 1,311,000 shares of the company's stock worth $128,229,000 after acquiring an additional 271,000 shares during the period. Norges Bank acquired a new stake in shares of J. M. Smucker during the 4th quarter worth approximately $92,960,000. Bank of New York Mellon Corp acquired a new stake in shares of J. M. Smucker during the 2nd quarter worth approximately $103,113,000. Finally, Bank of America Corp DE increased its position in shares of J. M. Smucker by 5.9% during the first quarter. Bank of America Corp DE now owns 767,336 shares of the company's stock valued at $74,002,000 after purchasing an additional 43,043 shares during the period. Institutional investors and hedge funds own 81.66% of the company's stock.

About J. M. Smucker

The J. M. Smucker Company is a food and beverage manufacturer headquartered in Orrville, Ohio. Founded in 1897 by Jerome Monroe Smucker, the company began with apple butter and has expanded into a diversified portfolio of branded consumer products sold primarily through retail and foodservice channels.

Its offerings include coffee products under brands such as Folgers, Café Bustelo and Dunkin' packaged coffee; fruit spreads and related products under the Smucker's brand; peanut butter and other foods under Jif; and frozen handheld snacks under the Uncrustables brand.

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