BlackRock Inc. Purchases New Position in International Flavors & Fragrances Inc. $IFF

Key Points

• BlackRock acquired 23.2 million IFF shares worth approximately $1.84 billion, giving it a 9.08% stake; institutional investors collectively own 96.02% of the company.
• IFF missed quarterly expectations, reporting $0.82 EPS versus a $1.07 consensus and revenue of $1.95 billion versus $2.62 billion expected. Despite the shortfall, the board authorized a $2.5 billion share-repurchase program covering up to 12.1% of outstanding shares.
• The company declared a quarterly dividend of $0.40, implying a 1.9% yield, while analysts maintained a “Moderate Buy” consensus with an average price target of $92.16.

BlackRock Inc. acquired a new position in International Flavors & Fragrances Inc. (NYSE:IFF - Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 23,175,401 shares of the specialty chemicals company's stock, valued at approximately $1,835,955,000. BlackRock Inc. owned about 9.08% of International Flavors & Fragrances as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors have also recently added to or reduced their stakes in the company. Lloyd Advisory Services LLC. bought a new position in shares of International Flavors & Fragrances during the 4th quarter valued at $27,000. Root Financial Partners LLC increased its position in International Flavors & Fragrances by 97.9% during the first quarter. Root Financial Partners LLC now owns 554 shares of the specialty chemicals company's stock worth $40,000 after buying an additional 274 shares during the last quarter. Geneos Wealth Management Inc. raised its holdings in International Flavors & Fragrances by 55.7% during the first quarter. Geneos Wealth Management Inc. now owns 587 shares of the specialty chemicals company's stock valued at $46,000 after buying an additional 210 shares in the last quarter. Transamerica Financial Advisors LLC lifted its position in shares of International Flavors & Fragrances by 884.1% in the second quarter. Transamerica Financial Advisors LLC now owns 679 shares of the specialty chemicals company's stock worth $50,000 after buying an additional 610 shares during the last quarter. Finally, EFG International AG bought a new stake in shares of International Flavors & Fragrances during the 4th quarter worth about $73,000. 96.02% of the stock is currently owned by institutional investors and hedge funds.

International Flavors & Fragrances Price Performance

NYSE:IFF opened at $83.23 on Thursday. The company has a debt-to-equity ratio of 0.34, a current ratio of 2.06 and a quick ratio of 1.72. The stock has a market cap of $21.24 billion, a P/E ratio of 76.36, a PEG ratio of 3.01 and a beta of 0.93. The company has a fifty day moving average price of $79.32 and a 200 day moving average price of $76.14. International Flavors & Fragrances Inc. has a one year low of $59.14 and a one year high of $89.32.

International Flavors & Fragrances (NYSE:IFF - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The specialty chemicals company reported $0.82 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.07 by ($0.25). The company had revenue of $1.95 billion for the quarter, compared to the consensus estimate of $2.62 billion. International Flavors & Fragrances had a return on equity of 7.11% and a net margin of 2.78%.The business's revenue for the quarter was up 1.8% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.15 EPS. Analysts anticipate that International Flavors & Fragrances Inc. will post 3.06 earnings per share for the current year.

International Flavors & Fragrances announced that its Board of Directors has authorized a stock repurchase plan on Tuesday, August 4th that allows the company to buyback $2.50 billion in outstanding shares. This buyback authorization allows the specialty chemicals company to repurchase up to 12.1% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's board believes its shares are undervalued.

International Flavors & Fragrances Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, October 9th. Shareholders of record on Friday, September 18th will be issued a $0.40 dividend. The ex-dividend date of this dividend is Friday, September 18th. This represents a $1.60 annualized dividend and a yield of 1.9%. International Flavors & Fragrances's dividend payout ratio is 146.79%.

Insider Transactions at International Flavors & Fragrances

In other news, Director Paul J. Fribourg bought 260,000 shares of the business's stock in a transaction that occurred on Monday, June 1st. The stock was acquired at an average cost of $74.28 per share, for a total transaction of $19,312,800.00. Following the completion of the purchase, the director owned 2,682,730 shares of the company's stock, valued at $199,273,184.40. This trade represents a 10.73% increase in their position. The purchase was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Michael Deveau sold 8,825 shares of the firm's 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 transaction, the executive vice president directly owned 5,199 shares of the company's stock, valued at approximately $444,774.45. This trade represents a 62.93% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 15,543 shares of company stock worth $1,315,659 over the last 90 days. Insiders own 1.07% of the company's stock.

Analysts Set New Price Targets

A number of brokerages have recently commented on IFF. Rothschild & Co Redburn lowered their price objective on International Flavors & Fragrances from $74.00 to $71.00 in a report on Friday, May 8th. Weiss Ratings cut shares of International Flavors & Fragrances from a "hold (c)" rating to a "hold (c-)" rating in a research note on Monday. Jefferies Financial Group upped their price objective on shares of International Flavors & Fragrances from $97.00 to $105.00 in a report on Thursday, May 7th. Oppenheimer raised their target price on shares of International Flavors & Fragrances from $88.00 to $90.00 and gave the company an "outperform" rating in a research note on Thursday, May 7th. Finally, JPMorgan Chase & Co. lifted their target price on shares of International Flavors & Fragrances from $90.00 to $92.00 and gave the stock an "overweight" rating in a report on Thursday, May 7th. Thirteen research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $92.16.

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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