International Flavors & Fragrances (NYSE:IFF) Board of Directors Initiates Stock Buyback Program

Key Points

• IFF authorized a $2.5 billion share repurchase program, allowing the company to buy back up to 12.1% of its outstanding shares through open-market purchases.
• The company reported quarterly EPS of $0.82, below the $1.07 consensus estimate, while revenue reached $1.95 billion versus expectations of $2.62 billion. Shares rose 0.5% to $80.95 in mid-day trading.
• IFF declared a quarterly dividend of $0.40 per share, equivalent to a $1.60 annualized payout and a 2.0% yield; analysts maintain a “Moderate Buy” consensus with a $91.16 average price target.

International Flavors & Fragrances (NYSE:IFF - Get Free Report) declared that its board has authorized a share repurchase program on Tuesday, August 4th, RTT News reports. The company plans to buyback $2.50 billion in outstanding shares. This buyback authorization permits the specialty chemicals company to buy up to 12.1% of its stock through open market purchases. Stock buyback programs are often a sign that the company's board believes its shares are undervalued.

International Flavors & Fragrances Stock Up 0.5%

International Flavors & Fragrances stock traded up $0.37 during mid-day trading on Tuesday, hitting $80.95. The company had a trading volume of 1,811,404 shares, compared to its average volume of 1,794,618. International Flavors & Fragrances has a 12 month low of $59.14 and a 12 month high of $84.45. The company has a market capitalization of $20.67 billion, a PE ratio of 24.76, a price-to-earnings-growth ratio of 2.02 and a beta of 0.93. The stock's 50 day moving average price is $77.22 and its two-hundred day moving average price is $75.19. The company has a current ratio of 1.49, a quick ratio of 0.87 and a debt-to-equity ratio of 0.33.

International Flavors & Fragrances (NYSE:IFF - Get Free Report) last posted its quarterly earnings results 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 during the quarter, compared to analysts' expectations of $2.62 billion. International Flavors & Fragrances had a return on equity of 7.65% and a net margin of 7.78%.International Flavors & Fragrances's revenue for the quarter was up 1.8% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.15 EPS. As a group, sell-side analysts anticipate that International Flavors & Fragrances will post 4.55 earnings per share for the current fiscal year.

International Flavors & Fragrances Dividend Announcement

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 paid a $0.40 dividend. This represents a $1.60 annualized dividend and a dividend yield of 2.0%. The ex-dividend date is Friday, September 18th. International Flavors & Fragrances's dividend payout ratio is currently 48.93%.

Analysts Set New Price Targets

IFF has been the subject of a number of research analyst reports. UBS Group raised their target price on International Flavors & Fragrances from $75.00 to $86.00 in a research note on Thursday, May 7th. Weiss Ratings raised International Flavors & Fragrances from a "sell (d)" rating to a "hold (c)" rating in a research note on Wednesday, May 6th. Argus increased their price objective on International Flavors & Fragrances from $80.00 to $85.00 and gave the stock a "buy" rating in a report on Tuesday, June 30th. Barclays raised their price objective on International Flavors & Fragrances from $80.00 to $90.00 and gave the company an "overweight" rating in a research report on Thursday, May 7th. Finally, Deutsche Bank Aktiengesellschaft reduced their target price on shares of International Flavors & Fragrances from $95.00 to $90.00 and set a "buy" rating on the stock in a research report on Monday, June 1st. Thirteen investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $91.16.

Insider Activity at International Flavors & Fragrances

In other news, Director Paul J. Fribourg purchased 260,000 shares of the business's stock in a transaction dated Monday, June 1st. The shares were purchased at an average price of $74.28 per share, for a total transaction of $19,312,800.00. Following the completion of the acquisition, the director directly owned 2,682,730 shares in the company, valued at $199,273,184.40. This represents a 10.73% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 1.07% of the stock is currently owned by insiders.

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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