BlackRock Inc. Acquires Shares of 2,742,494 The Marzetti Company $MZTI

Key Points

• BlackRock acquired 2,742,494 Marzetti shares worth approximately $313.1 million, establishing a roughly 10% stake. Overall, institutional investors own 66.44% of the company.
• Marzetti reported quarterly adjusted EPS of $1.46 on $465.0 million in revenue; earnings rose 9%, while sales declined 2.2%. The company also announced a $1.00 quarterly dividend, equivalent to a 3.5% annualized yield.
• Analyst sentiment remains cautious, with an average “Reduce” rating and a $135 consensus price target. Expected margin expansion in fiscal 2027 could be offset in the near term by Cyclospora-related costs projected to create a 250-basis-point headwind.

BlackRock Inc. purchased a new position in shares of The Marzetti Company (NASDAQ:MZTI - Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm purchased 2,742,494 shares of the company's stock, valued at approximately $313,083,000. BlackRock Inc. owned about 10.00% of Marzetti as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Deutsche Bank AG acquired a new stake in Marzetti during the 2nd quarter worth approximately $3,443,000. Global Retirement Partners LLC acquired a new position in shares of Marzetti in the second quarter valued at approximately $56,000. GSA Capital Partners LLP purchased a new stake in shares of Marzetti during the second quarter worth approximately $513,000. GAMMA Investing LLC lifted its holdings in shares of Marzetti by 148.5% during the second quarter. GAMMA Investing LLC now owns 1,230 shares of the company's stock worth $140,000 after purchasing an additional 735 shares during the period. Finally, Versant Capital Management Inc increased its stake in Marzetti by 447.8% in the 2nd quarter. Versant Capital Management Inc now owns 378 shares of the company's stock valued at $43,000 after buying an additional 309 shares during the period. 66.44% of the stock is owned by hedge funds and other institutional investors.

Key Marzetti News

Here are the key news stories impacting Marzetti this week:

• Positive Sentiment: Marzetti reported quarterly adjusted earnings of $1.46 per share on revenue of approximately $465.0 million. Adjusted earnings increased 9%, while improved margins and new product launches helped offset the sales decline. Marzetti Stock Confirms Reversal on Earnings Strength, Dividend Growth
• Positive Sentiment: Management expects gross margin to expand by about 100 basis points in fiscal 2027, supporting the outlook for continued profitability. The company’s dividend-growth record and reported institutional buying may also provide support for the stock. Marzetti expects 100 bps gross margin growth in fiscal 2027
• Neutral Sentiment: Stephens reaffirmed its “equal weight” rating and set a $140 price target, while DA Davidson maintained a “neutral” view with a $130 target. Both targets remain above the referenced share price, but the DA Davidson reduction from $168 signals lower expectations for near-term upside.
• Negative Sentiment: Consolidated fourth-quarter sales declined 2.2% to $465.0 million. Although sales increased after excluding the prior year’s temporary $12.2 million Winland Foods supply-agreement revenue, the headline miss versus analyst expectations likely pressured the shares. The Marzetti Company Reports Fourth Quarter and Fiscal Year Results
• Negative Sentiment: Management warned that Cyclospora-related costs could create an approximately 250-basis-point gross-margin headwind in the first quarter of fiscal 2027, temporarily offsetting the expected full-year margin gains.

Analyst Ratings Changes

• Lancaster Colony Corporation NASDAQ: LANC Is About To Raise The Dividend

A number of equities analysts have commented on the stock. DA Davidson cut their price objective on shares of Marzetti from $168.00 to $130.00 and set a "neutral" rating for the company in a research report on Wednesday. Weiss Ratings reiterated a "sell (d+)" rating on shares of Marzetti in a research note on Monday, August 17th. Finally, Stephens reissued an "equal weight" rating and set a $140.00 price target on shares of Marzetti in a report on Wednesday. Two analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Reduce" and a consensus price target of $135.00.

Insider Transactions at Marzetti

In other Marzetti news, insider Luis Viso sold 1,221 shares of the stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $109.31, for a total value of $133,467.51. Following the completion of the transaction, the insider directly owned 1,924 shares of the company's stock, valued at approximately $210,312.44. This trade represents a 38.82% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Company insiders own 29.10% of the company's stock.

Marzetti Price Performance

Shares of NASDAQ MZTI opened at $113.45 on Thursday. The firm has a market capitalization of $3.11 billion, a P/E ratio of 16.28 and a beta of 0.32. The Marzetti Company has a one year low of $104.28 and a one year high of $186.95. The company's fifty day moving average is $111.84 and its two-hundred day moving average is $127.06. The company has a debt-to-equity ratio of 0.18, a quick ratio of 1.70 and a current ratio of 1.56.

Marzetti (NASDAQ:MZTI - Get Free Report) last announced its quarterly earnings results on Tuesday, August 25th. The company reported $1.46 earnings per share (EPS) for the quarter. Marzetti had a net margin of 9.93% and a return on equity of 18.22%. The business had revenue of $465.03 million during the quarter.

Marzetti Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 8th will be given a dividend of $1.00 per share. This represents a $4.00 annualized dividend and a yield of 3.5%. The ex-dividend date is Tuesday, September 8th. Marzetti's dividend payout ratio is presently 62.60%.

Marzetti Company Profile

Lancaster Colony Corporation engages in the manufacturing and marketing of specialty food products for the retail and foodservice channels in the United States. It operates in two segments, Retail and Foodservice. The company offers frozen garlic bread under the New York BRAND Bakery; frozen Parkerhouse style yeast and dinner rolls under the Sister Schubert's brand; salad dressings under the Marzetti, Simply Dressed, Cardini's, and Girard's brands; vegetable and fruit dips under the Marzetti brand; croutons and salad toppings under the New York BRAND Bakery, Chatham Village, and Marzetti brands; and frozen pasta under the Marzetti Frozen Pasta brand.

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