Ingredion (NYSE:INGR) Reaches New 1-Year Low - What's Next?

Key Points

• Ingredion hit a new 52-week low on Tuesday, briefly falling to $97.12 before last trading around $100.14, highlighting recent weakness in the stock.
• The biggest catalyst is Ingredion’s planned $3.6 billion all-cash acquisition of Tate & Lyle, which management says will expand its specialty ingredients platform and global reach in higher-value food solutions.
• Analyst sentiment is mixed: Benchmark reiterated a buy, but other firms cut ratings, and the stock currently carries an average Hold rating with a $122.43 price target, above the recent trading level.

Ingredion Incorporated (NYSE:INGR - Get Free Report)'s stock price hit a new 52-week low during mid-day trading on Tuesday . The stock traded as low as $97.12 and last traded at $100.14, with a volume of 42152 shares. The stock had previously closed at $99.66.

Ingredion News Roundup

Here are the key news stories impacting Ingredion this week:

• Positive Sentiment: Ingredion announced a recommended all-cash acquisition of Tate & Lyle for about $3.6 billion, a deal management says will expand its specialty ingredients platform, improve its capabilities in sugar reduction and fortification, and broaden its global supply network. Article Title
• Positive Sentiment: The Tate & Lyle deal positions Ingredion as a larger global specialty-ingredients supplier, which could support longer-term growth and improve its competitive positioning in higher-value food solutions. Article Title
• Neutral Sentiment: Several headlines and market commentary focused on the terms and structure of the Tate & Lyle transaction, including takeover speculation, M&A call coverage, and arbitrage discussions, keeping attention on the deal rather than on Ingredion’s core operating performance. Article Title
• Negative Sentiment: Sentiment may be tempered by a downgrade-related headline from Wall Street, and analysts’ views remain mixed, suggesting some investors are questioning near-term upside after the acquisition announcement. Article Title

Analyst Upgrades and Downgrades

INGR has been the topic of several recent research reports. Benchmark reiterated a "buy" rating on shares of Ingredion in a report on Tuesday. Zacks Research lowered Ingredion from a "hold" rating to a "strong sell" rating in a report on Tuesday, May 19th. Weiss Ratings reiterated a "hold (c)" rating on shares of Ingredion in a report on Friday, March 27th. Barclays cut their price target on Ingredion from $128.00 to $120.00 and set an "equal weight" rating on the stock in a report on Wednesday, May 6th. Finally, Oppenheimer lowered Ingredion from an "outperform" rating to a "market perform" rating in a report on Monday. One equities research analyst has rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $122.43.

Ingredion Stock Performance

The company has a market cap of $6.37 billion, a PE ratio of 9.74, a PEG ratio of 0.84 and a beta of 0.60. The company has a quick ratio of 1.83, a current ratio of 2.76 and a debt-to-equity ratio of 0.40. The company has a 50-day moving average of $108.11 and a 200-day moving average of $111.30.

Ingredion (NYSE:INGR - Get Free Report) last announced its earnings results on Tuesday, May 5th. The company reported $2.34 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.44 by ($0.10). The company had revenue of $1.79 billion for the quarter, compared to analysts' expectations of $1.79 billion. Ingredion had a net margin of 9.36% and a return on equity of 15.86%. The firm's quarterly revenue was down 1.2% on a year-over-year basis. During the same period in the previous year, the firm earned $2.97 EPS. Ingredion has set its FY 2026 guidance at 10.450-11.150 EPS. As a group, analysts anticipate that Ingredion Incorporated will post 10.88 earnings per share for the current year.

Ingredion Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, July 21st. Investors of record on Wednesday, July 1st will be issued a dividend of $0.82 per share. This represents a $3.28 dividend on an annualized basis and a yield of 3.2%. The ex-dividend date is Wednesday, July 1st. Ingredion's dividend payout ratio (DPR) is 31.60%.

Insider Buying and Selling

In related news, VP Davida Marie Gable sold 375 shares of Ingredion stock in a transaction on Wednesday, March 18th. The stock was sold at an average price of $112.44, for a total transaction of $42,165.00. Following the sale, the vice president directly owned 7,110 shares in the company, valued at approximately $799,448.40. This trade represents a 5.01% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Company insiders own 1.60% of the company's stock.

Institutional Trading of Ingredion

A number of hedge funds have recently bought and sold shares of INGR. International Assets Investment Management LLC bought a new stake in Ingredion during the fourth quarter worth $30,000. GHP Investment Advisors Inc. bought a new stake in Ingredion during the first quarter worth $33,000. Los Angeles Capital Management LLC bought a new stake in Ingredion during the fourth quarter worth $36,000. Capital Advisors Ltd. LLC lifted its holdings in Ingredion by 40.5% during the fourth quarter. Capital Advisors Ltd. LLC now owns 354 shares of the company's stock worth $39,000 after acquiring an additional 102 shares during the period. Finally, Root Financial Partners LLC lifted its holdings in Ingredion by 83.7% during the first quarter. Root Financial Partners LLC now owns 371 shares of the company's stock worth $42,000 after acquiring an additional 169 shares during the period. 85.27% of the stock is currently owned by institutional investors.

Ingredion Company Profile

Ingredion Incorporated is a global ingredient solutions company specializing in the production and sale of starches, sweeteners, nutrition ingredients and biomaterials derived primarily from corn and other plant-based raw materials. The company serves a diverse set of industries, including food and beverage, brewing, pharmaceuticals and personal care, providing functional ingredients that enhance texture, stability, flavor and nutritional value in a wide array of end products.

The company's product portfolio comprises native and modified starches, high-fructose corn syrup, dextrose, maltodextrins, specialty sweeteners and various texturizers.

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