International Flavors & Fragrances (NYSE:IFF) Downgraded by Zacks Research to "Strong Sell"

Key Points

• Zacks Research downgraded IFF to “strong sell” from “hold,” while Wall Street Zen also cut its rating to “sell.” However, the broader analyst consensus remains “moderate buy,” with an average price target of $92.16.
• IFF’s latest results missed expectations, with earnings per share of $0.82 versus the $1.07 consensus and revenue of $1.95 billion versus estimates of $2.62 billion. The company’s revenue still grew 1.8% year over year, but the weak quarter and lowered sales outlook weigh on the investment case.
• The company authorized a $2.5 billion share-repurchase program, allowing it to buy back up to 12.1% of outstanding shares. IFF shares opened at $85.80 and remained near their 52-week high of $89.32.

International Flavors & Fragrances (NYSE:IFF - Get Free Report) was downgraded by Zacks Research from a "hold" rating to a "strong sell" rating in a report released on Thursday,Zacks.com reports.

Several other brokerages have also recently issued reports on IFF. Wall Street Zen cut shares of International Flavors & Fragrances from a "hold" rating to a "sell" rating in a research note on Saturday. BNP Paribas Exane raised their target price on shares of International Flavors & Fragrances from $85.00 to $95.00 in a research note on Thursday, May 7th. Morgan Stanley lifted their target price on shares of International Flavors & Fragrances from $93.00 to $95.00 and gave the company an "overweight" rating in a report on Wednesday, July 1st. UBS Group boosted their price target on shares of International Flavors & Fragrances from $84.00 to $91.00 and gave the stock a "neutral" rating in a research note on Thursday. Finally, JPMorgan Chase & Co. raised their price objective on shares of International Flavors & Fragrances from $90.00 to $92.00 and gave the company an "overweight" rating in a research report on Thursday, May 7th. Thirteen 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's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $92.16.

International Flavors & Fragrances Stock Up 1.5%

IFF opened at $85.80 on Thursday. International Flavors & Fragrances has a 52 week low of $59.14 and a 52 week high of $89.32. The business has a 50 day moving average price of $77.77 and a two-hundred day moving average price of $75.47. The company has a quick ratio of 0.87, a current ratio of 2.06 and a debt-to-equity ratio of 0.34. The company has a market cap of $21.89 billion, a PE ratio of 78.72, a P/E/G ratio of 2.50 and a beta of 0.93.

International Flavors & Fragrances (NYSE:IFF - Get Free Report) last announced its earnings results on Tuesday, August 4th. The specialty chemicals company reported $0.82 earnings per share 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 net margin of 2.78% and a return on equity of 7.11%. The company's revenue for the quarter was up 1.8% compared to the same quarter last year. During the same quarter last year, the business posted $1.15 earnings per share. As a group, research analysts anticipate that International Flavors & Fragrances will post 3.85 EPS for the current year.

International Flavors & Fragrances declared that its Board of Directors has authorized a stock repurchase program on Tuesday, August 4th that authorizes the company to buyback $2.50 billion in outstanding shares. This buyback authorization authorizes the specialty chemicals company to repurchase up to 12.1% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's management believes its stock is undervalued.

Insider Transactions at International Flavors & Fragrances

In related news, EVP Michael Deveau sold 8,825 shares of the company's stock in a transaction that occurred 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 sale, the executive vice president owned 5,199 shares in the company, valued at $444,774.45. This represents a 62.93% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Paul J. Fribourg acquired 260,000 shares of the company's stock in a transaction that occurred on Monday, June 1st. The stock was purchased at an average cost of $74.28 per share, with a total value of $19,312,800.00. Following the completion of the purchase, 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 ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Company insiders own 1.07% of the company's stock.

Institutional Trading of International Flavors & Fragrances

Large investors have recently bought and sold shares of the company. BlackRock Inc. purchased a new stake in shares of International Flavors & Fragrances in the 2nd quarter worth about $1,835,955,000. State Street Corp increased its holdings in International Flavors & Fragrances by 1.1% during the 4th quarter. State Street Corp now owns 11,092,368 shares of the specialty chemicals company's stock valued at $751,875,000 after acquiring an additional 121,260 shares in the last quarter. First Eagle Investment Management LLC raised its position in International Flavors & Fragrances by 27.5% during the fourth quarter. First Eagle Investment Management LLC now owns 8,831,668 shares of the specialty chemicals company's stock worth $595,166,000 after acquiring an additional 1,904,598 shares during the last quarter. Invesco Ltd. raised its position in International Flavors & Fragrances by 4.9% during the fourth quarter. Invesco Ltd. now owns 7,519,812 shares of the specialty chemicals company's stock worth $506,760,000 after acquiring an additional 352,636 shares during the last quarter. Finally, Geode Capital Management LLC lifted its holdings in shares of International Flavors & Fragrances by 2.6% in the fourth quarter. Geode Capital Management LLC now owns 6,771,894 shares of the specialty chemicals company's stock valued at $454,607,000 after purchasing an additional 172,781 shares in the last quarter. Institutional investors and hedge funds own 96.02% of the company's stock.

Key Stories Impacting International Flavors & Fragrances

Here are the key news stories impacting International Flavors & Fragrances this week:

• Positive Sentiment: Barclays raised its price target from $90 to $96 and upgraded its stance to “overweight,” implying approximately 12% upside from the reference price. The move signals improving confidence in IFF’s earnings outlook and restructuring efforts. Benzinga analyst update
• Positive Sentiment: Benchmark increased its target from $100 to $105 and maintained a “buy” rating, representing roughly 22% potential upside. This is the most bullish valuation among the recent analyst actions. Benzinga analyst update
• Positive Sentiment: IFF plans to repurchase up to $2.5 billion of its shares, which could support per-share earnings and signal that management views the stock as attractively valued. IFF share buyback report
• Neutral Sentiment: UBS raised its price target from $84 to $91 but retained a “neutral” rating. The higher valuation provides modest upside, while the unchanged rating suggests the firm sees balanced potential and risks. Benzinga analyst update
• Negative Sentiment: Vertical Research downgraded IFF from “buy” to “hold,” despite assigning a $93 price target. The downgrade may limit enthusiasm because it reflects less conviction in near-term upside. Finviz analyst update
• Negative Sentiment: Second-quarter results were mixed to weak: adjusted earnings per share came in at $0.82 versus the $1.07 consensus, while revenue of $1.95 billion missed estimates of $2.62 billion. IFF also lowered its full-year sales outlook, overshadowing modest year-over-year revenue growth. International Flavors Q2 earnings snapshot

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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