Investors Buy Large Volume of J. M. Smucker Call Options (NYSE:SJM)

Key Points

• Unusual options activity hit J. M. Smucker, with investors buying 2,148 call options on Tuesday — about 40% above the stock’s average call volume.
• The stock jumped 11.7% to $113.71 after the company beat quarterly EPS expectations and slightly topped revenue estimates, signaling a stronger-than-expected quarter.
• Despite the earnings beat, management’s fiscal 2027 revenue guidance of $8.7 billion to $8.8 billion came in below analyst expectations, even as EPS guidance was above consensus.

The J. M. Smucker Company (NYSE:SJM - Get Free Report) was the target of some unusual options trading activity on Tuesday. Investors acquired 2,148 call options on the stock. This represents an increase of 40% compared to the average volume of 1,539 call options.

Wall Street Analysts Forecast Growth

SJM has been the subject of a number of analyst reports. JPMorgan Chase & Co. decreased their price objective on J. M. Smucker from $130.00 to $120.00 and set an "overweight" rating for the company in a research note on Tuesday, May 19th. Stifel Nicolaus decreased their price target on shares of J. M. Smucker from $120.00 to $100.00 and set a "hold" rating for the company in a report on Tuesday, April 21st. Wells Fargo & Company lowered their price objective on shares of J. M. Smucker from $135.00 to $125.00 and set an "overweight" rating for the company in a research report on Wednesday, April 8th. Weiss Ratings reiterated a "sell (d)" rating on shares of J. M. Smucker in a report on Monday, April 20th. Finally, Deutsche Bank Aktiengesellschaft reissued a "hold" rating and issued a $95.00 target price on shares of J. M. Smucker in a research note on Wednesday, May 20th. Eleven investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $116.71.

J. M. Smucker Stock Up 11.7%

NYSE:SJM traded up $11.94 during trading hours on Tuesday, reaching $113.71. 1,267,296 shares of the stock were exchanged, compared to its average volume of 1,970,779. The stock has a market cap of $12.13 billion, a PE ratio of -9.61, a PEG ratio of 6.99 and a beta of 0.27. J. M. Smucker has a twelve month low of $88.25 and a twelve month high of $119.39. The firm has a 50 day moving average of $98.03 and a 200 day moving average of $101.68. The company has a debt-to-equity ratio of 1.31, a current ratio of 0.84 and a quick ratio of 0.35.

J. M. Smucker (NYSE:SJM - Get Free Report) last posted its quarterly earnings data on Tuesday, June 9th. The company reported $2.77 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.65 by $0.12. J. M. Smucker had a negative net margin of 14.07% and a positive return on equity of 15.94%. The company had revenue of $2.27 billion for the quarter, compared to the consensus estimate of $2.26 billion. During the same period last year, the company earned $2.31 earnings per share. The firm's revenue was up 5.8% compared to the same quarter last year. J. M. Smucker has set its FY 2027 guidance at 9.750-10.250 EPS. On average, equities analysts expect that J. M. Smucker will post 9.03 earnings per share for the current year.

J. M. Smucker Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, June 1st. Shareholders of record on Friday, May 15th were given a dividend of $1.10 per share. The ex-dividend date of this dividend was Friday, May 15th. This represents a $4.40 annualized dividend and a yield of 3.9%. J. M. Smucker's payout ratio is -37.32%.

Key Stories Impacting J. M. Smucker

Here are the key news stories impacting J. M. Smucker this week:

• Positive Sentiment: Smucker beat quarterly earnings expectations and slightly topped revenue estimates, signaling stronger-than-expected recent performance. Smucker (SJM) Q4 Earnings Top Estimates
• Positive Sentiment: Fiscal 2027 EPS guidance of $9.75 to $10.25 came in above consensus, suggesting management expects solid profitability even as growth moderates. The J.M. Smucker Co. Announces Fiscal Year 2026 Fourth Quarter Results and Provides Full-Year Fiscal 2027 Outlook
• Neutral Sentiment: Analysts and media coverage noted the earnings report was positive, but the market is also weighing mixed guidance that points to lower sales ahead. J.M. Smucker Stock Rises. Earnings and Guidance Go in Opposite Directions.
• Negative Sentiment: Management guided for fiscal 2027 revenue of $8.7 billion to $8.8 billion, below analyst expectations, which raises concerns about slowing top-line growth. J.M. Smucker Expects Sales to Fall This Year

Hedge Funds Weigh In On J. M. Smucker

Hedge funds have recently modified their holdings of the stock. UBS Group AG raised its holdings in J. M. Smucker by 238.7% during the fourth quarter. UBS Group AG now owns 3,924,282 shares of the company's stock worth $383,834,000 after acquiring an additional 2,765,559 shares in the last quarter. Two Sigma Investments LP increased its position in shares of J. M. Smucker by 6,854.4% during the 3rd quarter. Two Sigma Investments LP now owns 1,527,962 shares of the company's stock worth $165,937,000 after purchasing an additional 1,505,991 shares during the last quarter. National Bank of Canada FI increased its position in shares of J. M. Smucker by 797.4% during the 3rd quarter. National Bank of Canada FI now owns 1,401,173 shares of the company's stock worth $152,167,000 after purchasing an additional 1,245,035 shares during the last quarter. Capitolis Liquid Global Markets LLC bought a new stake in shares of J. M. Smucker during the 3rd quarter worth approximately $112,944,000. Finally, Norges Bank acquired a new stake in shares of J. M. Smucker in the 4th quarter valued at approximately $92,960,000. Institutional investors own 81.66% of the company's stock.

J. M. Smucker Company Profile

The J. M. Smucker Company is a diversified food and beverage manufacturer and marketer known for a portfolio of well-established consumer brands. The company's main business activities include the production and distribution of fruit spreads, peanut butter, coffee and coffee filters, as well as pet food and pet snacks. Smucker's core product lines serve both retail and foodservice customers through grocery chains, mass merchandisers, club stores, convenience outlets and e-commerce channels.

Among its leading brands are Smucker's® fruit spreads, Jif® peanut butter, Folgers® and Dunkin'® coffees, and Café Bustelo® coffee.

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