Clifford Swan Investment Counsel LLC Cuts Stake in International Flavors & Fragrances Inc. $IFF

Key Points

• Clifford Swan Investment Counsel reduced its IFF stake by 10% in the second quarter, selling 13,004 shares and retaining 117,105 shares valued at approximately $9.3 million. Institutional investors and hedge funds collectively own 96.02% of the company.
• IFF reported quarterly earnings of $0.82 per share, below the $1.07 consensus estimate, while revenue rose 1.8% year over year to $1.95 billion. The company authorized a $2.5 billion share-repurchase program and announced a quarterly dividend of $0.40 per share.
• Analyst sentiment remains generally positive, with a “Moderate Buy” consensus rating and an average price target of $91.40 versus the reported share price of $86.37. Recent insider activity was negative, with executives selling shares over the past three months.

Clifford Swan Investment Counsel LLC lessened its position in International Flavors & Fragrances Inc. (NYSE:IFF - Free Report) by 10.0% in the 2nd quarter, according to its most recent filing with the SEC. The firm owned 117,105 shares of the specialty chemicals company's stock after selling 13,004 shares during the period. Clifford Swan Investment Counsel LLC's holdings in International Flavors & Fragrances were worth $9,277,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also made changes to their positions in the company. A. D. Beadell Investment Counsel Inc. raised its holdings in International Flavors & Fragrances by 2.2% during the second quarter. A. D. Beadell Investment Counsel Inc. now owns 15,245 shares of the specialty chemicals company's stock worth $1,207,000 after purchasing an additional 325 shares in the last quarter. Ancora Advisors LLC boosted its stake in shares of International Flavors & Fragrances by 245.5% in the second quarter. Ancora Advisors LLC now owns 176,704 shares of the specialty chemicals company's stock valued at $13,998,000 after buying an additional 125,563 shares in the last quarter. Benjamin Edwards Inc. raised its position in International Flavors & Fragrances by 18.2% in the second quarter. Benjamin Edwards Inc. now owns 6,480 shares of the specialty chemicals company's stock worth $513,000 after acquiring an additional 996 shares in the last quarter. Alyeska Investment Group L.P. grew its stake in shares of International Flavors & Fragrances by 7.2% during the 2nd quarter. Alyeska Investment Group L.P. now owns 222,987 shares of the specialty chemicals company's stock worth $17,665,000 after purchasing an additional 15,028 shares during the period. Finally, Greenleaf Trust increased its holdings in International Flavors & Fragrances by 6.4% in the second quarter. Greenleaf Trust now owns 14,084 shares of the specialty chemicals company's stock valued at $1,116,000 after buying an additional 846 shares in the last quarter. 96.02% of the stock is currently owned by institutional investors and hedge funds.

International Flavors & Fragrances Price Performance

IFF stock opened at $86.37 on Tuesday. The firm has a market cap of $22.04 billion, a P/E ratio of 79.24, a price-to-earnings-growth ratio of 3.25 and a beta of 0.93. The company has a debt-to-equity ratio of 0.34, a quick ratio of 1.72 and a current ratio of 2.06. International Flavors & Fragrances Inc. has a 1 year low of $59.14 and a 1 year high of $89.32. The stock has a 50-day simple moving average of $80.75 and a 200-day simple moving average of $76.88.

International Flavors & Fragrances (NYSE:IFF - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The specialty chemicals company reported $0.82 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 analyst estimates 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 was up 1.8% on a year-over-year basis. During the same period last year, the firm posted $1.15 earnings per share. On average, equities analysts predict that International Flavors & Fragrances Inc. will post 3.08 earnings per share for the current fiscal year.

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

International Flavors & Fragrances Announces Dividend

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

Insider Activity

In related news, CAO Marc Birenkrant sold 1,000 shares of the firm's stock in a transaction on Friday, August 7th. The shares were sold at an average price of $85.00, for a total transaction of $85,000.00. Following the completion of the sale, the chief accounting officer directly owned 3,446 shares of the company's stock, valued at approximately $292,910. This trade represents a 22.49% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider De Mendonca Ana Paula Teles sold 5,718 shares of International Flavors & Fragrances stock in a transaction on Monday, August 17th. The stock was sold at an average price of $83.19, for a total transaction of $475,680.42. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 15,543 shares of company stock worth $1,315,659. 1.07% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

Several analysts have weighed in on the company. BNP Paribas Exane upped their target price on International Flavors & Fragrances from $85.00 to $95.00 in a report on Thursday, May 7th. Rothschild & Co Redburn cut their target price on shares of International Flavors & Fragrances from $74.00 to $71.00 in a research report on Friday, May 8th. Vertical Research lowered shares of International Flavors & Fragrances from a "buy" rating to a "hold" rating and set a $93.00 price target on the stock. in a research report on Thursday, August 6th. JPMorgan Chase & Co. upped their target price on International Flavors & Fragrances from $90.00 to $92.00 and gave the company an "overweight" rating in a research note on Thursday, May 7th. Finally, Weiss Ratings downgraded International Flavors & Fragrances from a "hold (c)" rating to a "hold (c-)" rating in a research report on Monday, August 17th. Twelve investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $91.40.

International Flavors & Fragrances Profile

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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