J. M. Smucker (NYSE:SJM) Sets New 1-Year Low on Analyst Downgrade

Key Points

• J. M. Smucker hit a new 52-week low after Wells Fargo lowered its price target from $135 to $125, with the stock trading as low as $91.64 and last around $92.19.
• Analyst sentiment is mixed—nine Buy ratings, nine Hold ratings and one Sell result in a MarketBeat consensus of "Hold" and a consensus price target of $118.93.
• Smucker beat quarterly EPS expectations ($2.38 vs. $2.27) with revenue up 7% year-over-year, pays a $4.40 annual dividend (a 4.8% yield), and institutions own about 81.66% of the stock with several large firms increasing positions.

The J. M. Smucker Company (NYSE:SJM - Get Free Report) reached a new 52-week low on Thursday after Wells Fargo & Company lowered their price target on the stock from $135.00 to $125.00. Wells Fargo & Company currently has an overweight rating on the stock. J. M. Smucker traded as low as $91.64 and last traded at $92.1870, with a volume of 98145 shares changing hands. The stock had previously closed at $93.79.

A number of other research firms also recently weighed in on SJM. Canaccord Genuity Group raised shares of J. M. Smucker to a "buy" rating in a research report on Friday, January 16th. Barclays increased their target price on shares of J. M. Smucker from $105.00 to $125.00 and gave the company an "equal weight" rating in a research report on Monday, March 2nd. TD Cowen decreased their target price on shares of J. M. Smucker from $124.00 to $113.00 and set a "hold" rating for the company in a research report on Thursday, March 19th. Bank of America raised shares of J. M. Smucker from a "neutral" rating to a "buy" rating and set a $130.00 target price for the company in a research report on Monday, February 23rd. Finally, Sanford C. Bernstein raised shares of J. M. Smucker from a "market perform" rating to an "outperform" rating and increased their target price for the company from $121.00 to $145.00 in a research report on Wednesday, March 11th. Nine investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $118.93.

Institutional Trading of J. M. Smucker

Several large investors have recently modified their holdings of the stock. UBS Group AG grew its position in shares of J. M. Smucker by 238.7% during the 4th quarter. UBS Group AG now owns 3,924,282 shares of the company's stock worth $383,834,000 after buying an additional 2,765,559 shares during the period. Dimensional Fund Advisors LP grew its position in shares of J. M. Smucker by 33.5% during the 4th quarter. Dimensional Fund Advisors LP now owns 3,392,300 shares of the company's stock worth $331,807,000 after buying an additional 850,943 shares during the period. Invesco Ltd. grew its position in J. M. Smucker by 5.8% in the 4th quarter. Invesco Ltd. now owns 2,783,272 shares of the company's stock valued at $272,232,000 after purchasing an additional 151,872 shares during the period. Morgan Stanley grew its position in J. M. Smucker by 16.8% in the 4th quarter. Morgan Stanley now owns 2,486,596 shares of the company's stock valued at $243,214,000 after purchasing an additional 357,253 shares during the period. Finally, Balyasny Asset Management L.P. grew its position in J. M. Smucker by 45.4% in the 2nd quarter. Balyasny Asset Management L.P. now owns 2,251,934 shares of the company's stock valued at $221,140,000 after purchasing an additional 703,382 shares during the period. Institutional investors and hedge funds own 81.66% of the company's stock.

J. M. Smucker Trading Down 1.6%

The firm's 50-day moving average is $105.03 and its 200-day moving average is $103.81. The company has a current ratio of 0.84, a quick ratio of 0.35 and a debt-to-equity ratio of 1.31. The firm has a market cap of $9.84 billion, a price-to-earnings ratio of -7.82, a P/E/G ratio of 4.15 and a beta of 0.27.

J. M. Smucker (NYSE:SJM - Get Free Report) last posted its quarterly earnings results on Thursday, February 26th. The company reported $2.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.27 by $0.11. J. M. Smucker had a negative net margin of 14.07% and a positive return on equity of 15.94%. The business had revenue of $2.34 billion during the quarter, compared to the consensus estimate of $2.32 billion. During the same quarter last year, the firm posted $2.61 EPS. J. M. Smucker's revenue was up 7.0% compared to the same quarter last year. As a group, sell-side analysts anticipate that The J. M. Smucker Company will post 9.88 EPS for the current fiscal year.

J. M. Smucker Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Monday, March 2nd. Investors of record on Friday, February 13th were given a $1.10 dividend. The ex-dividend date of this dividend was Friday, February 13th. This represents a $4.40 annualized dividend and a yield of 4.8%. J. M. Smucker's dividend payout ratio (DPR) is presently -37.32%.

About J. M. Smucker

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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