The J. M. Smucker Company (NYSE:SJM) Stock Has Average Target Price of $136.25

Key Points

• Analysts rate J. M. Smucker “Moderate Buy,” with 10 buy ratings and seven holds; the average 12-month price target is $136.25, including a recent Bernstein increase to $157.
• 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.
• Smucker raised its quarterly dividend to $1.12, equivalent to an annualized $4.48 payout and a 3.7% yield, although its payout ratio is elevated at 209.35%.

Shares of The J. M. Smucker Company (NYSE:SJM - Get Free Report) have been given an average rating of "Moderate Buy" by the seventeen ratings firms that are currently covering the stock, MarketBeat.com reports. Seven research analysts have rated the stock with a hold recommendation and ten have assigned a buy recommendation to the company. The average 12 month price objective among brokerages that have issued ratings on the stock in the last year is $136.25.

SJM has been the subject of several recent analyst reports. Sanford C. Bernstein lifted their price objective on shares of J. M. Smucker from $137.00 to $157.00 and gave the stock an "outperform" rating in a research note on Thursday, August 27th. Deutsche Bank Aktiengesellschaft set a $125.00 target price on shares of J. M. Smucker in a research note on Thursday, August 27th. BTIG Research reissued a "buy" rating on shares of J. M. Smucker in a research note on Wednesday, August 26th. TD Cowen raised their target price on shares of J. M. Smucker from $123.00 to $136.00 and gave the stock a "hold" rating in a report on Thursday, August 27th. Finally, HC Wainwright set a $123.00 price target on shares of J. M. Smucker in a research note on Wednesday, August 19th.

J. M. Smucker Price Performance

NYSE:SJM opened at $121.37 on Wednesday. The firm has a market capitalization of $12.96 billion, a price-to-earnings ratio of 56.71, a PEG ratio of 1.62 and a beta of 0.28. J. M. Smucker has a 1 year low of $88.25 and a 1 year high of $135.89. The business has a 50 day simple moving average of $122.28 and a 200-day simple moving average of $111.38. The company has a debt-to-equity ratio of 1.11, a current ratio of 0.87 and a quick ratio of 0.35.

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

J. M. Smucker Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 1st. Investors of record on Friday, August 14th were given a $1.12 dividend. This is an increase from J. M. Smucker's previous quarterly dividend of $1.10. The ex-dividend date of this dividend was Friday, August 14th. This represents a $4.48 dividend on an annualized basis and a yield of 3.7%. J. M. Smucker's dividend payout ratio is currently 209.35%.

Insider Activity

In other J. M. Smucker news, insider Robert D. Ferguson sold 2,522 shares of the business's stock in a transaction that occurred on Monday, August 31st. The stock was sold at an average price of $132.41, for a total transaction of $333,938.02. Following the completion of the transaction, the insider owned 36,295 shares in the company, valued at $4,805,820.95. The trade was a 6.50% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CFO Tucker H. Marshall sold 18,482 shares of the company's stock in a transaction that occurred on Friday, August 28th. The shares were sold at an average price of $132.05, for a total value of $2,440,548.10. Following the transaction, the chief financial officer directly owned 38,699 shares in the company, valued at approximately $5,110,202.95. This represents a 32.32% decrease in their position. The SEC filing for this sale provides additional information. 2.80% of the stock is owned by company insiders.

Institutional Investors Weigh In On J. M. Smucker

A number of institutional investors and hedge funds have recently modified their holdings of the business. CX Institutional grew its position in J. M. Smucker by 10.5% in the 3rd quarter. CX Institutional now owns 2,790 shares of the company's stock valued at $332,000 after acquiring an additional 264 shares during the last quarter. Versant Capital Management Inc increased its stake in J. M. Smucker by 457.6% in the third quarter. Versant Capital Management Inc now owns 2,169 shares of the company's stock worth $258,000 after purchasing an additional 1,780 shares during the period. Studio Investment Management LLC lifted its position in shares of J. M. Smucker by 10.3% during the second quarter. Studio Investment Management LLC now owns 9,924 shares of the company's stock worth $1,116,000 after purchasing an additional 926 shares during the last quarter. Mufg Securities Americas Inc. lifted its position in shares of J. M. Smucker by 8.8% during the second quarter. Mufg Securities Americas Inc. now owns 3,212 shares of the company's stock worth $361,000 after purchasing an additional 260 shares during the last quarter. Finally, Archer Investment Corp bought a new stake in shares of J. M. Smucker during the second quarter worth $25,000. 81.66% of the stock is owned by institutional investors.

J. M. Smucker Company Profile

The J. M. Smucker Company NYSE: SJM is a food and beverage company headquartered in Orrville, Ohio. Founded in 1897 by Jerome Monroe Smucker, the company began as a producer of apple butter and has expanded into a diversified portfolio of branded consumer products.

Smucker's products include coffee, pet food and treats, fruit spreads, peanut butter, baking ingredients, and sweet baked snacks. Its well-known brands include Folgers, Café Bustelo, Dunkin' packaged coffee, Jif, Smucker's, Milk-Bone, Meow Mix, Kibbles 'n Bits, 9Lives, Natural Balance, Hostess and Little Debbie snack products in select categories.

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