J. M. Smucker Sees Unusually High Options Volume (NYSE:SJM)

Key Points

• Unusually high bearish options activity: Traders purchased 5,189 put options on J. M. Smucker, about 241% above its typical volume.
• Shares rose and earnings beat estimates: SJM traded up 1.4% to $126.04, while quarterly EPS of $2.77 exceeded the $2.64 consensus and revenue increased 5.8% year over year.
• Dividend increased amid a generally positive analyst view: The quarterly dividend was raised to $1.12, equating to a 3.6% annual yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $125.53, while insiders have recently sold shares.

The J. M. Smucker Company (NYSE:SJM - Get Free Report) was the recipient of unusually large options trading activity on Monday. Traders bought 5,189 put options on the company. This is an increase of approximately 241% compared to the typical volume of 1,523 put options.

J. M. Smucker Trading Up 1.4%

NYSE:SJM traded up $1.72 during mid-day trading on Monday, hitting $126.04. 278,773 shares of the company's stock were exchanged, compared to its average volume of 1,809,646. The company has a 50 day simple moving average of $116.11 and a 200-day simple moving average of $107.40. The company has a current ratio of 0.78, a quick ratio of 0.33 and a debt-to-equity ratio of 1.15. J. M. Smucker has a fifty-two week low of $88.25 and a fifty-two week high of $127.64. The firm has a market capitalization of $13.44 billion, a P/E ratio of -96.79, a PEG ratio of 1.68 and a beta of 0.25.

J. M. Smucker (NYSE:SJM - Get Free Report) last announced its quarterly earnings results on Tuesday, June 9th. The company reported $2.77 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.64 by $0.13. The firm had revenue of $2.27 billion during the quarter, compared to analysts' expectations of $2.26 billion. J. M. Smucker had a negative net margin of 1.53% and a positive return on equity of 17.18%. The company's revenue was up 5.8% on a year-over-year basis. During the same period in the prior year, the company posted $2.31 EPS. J. M. Smucker has set its FY 2027 guidance at 9.750-10.250 EPS. As a group, research analysts expect that J. M. Smucker will post 9.98 earnings per share for the current year.

J. M. Smucker Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 1st. Investors of record on Friday, August 14th will be issued a $1.12 dividend. The ex-dividend date is Friday, August 14th. This is a positive change from J. M. Smucker's previous quarterly dividend of $1.10. This represents a $4.48 dividend on an annualized basis and a yield of 3.6%. J. M. Smucker's dividend payout ratio (DPR) is currently -344.62%.

Analysts Set New Price Targets

A number of analysts have weighed in on SJM shares. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and set a $107.00 target price on shares of J. M. Smucker in a research note on Friday, August 14th. HC Wainwright set a $123.00 price target on J. M. Smucker in a research note on Wednesday, August 19th. Royal Bank Of Canada raised their price objective on J. M. Smucker from $130.00 to $135.00 and gave the company an "outperform" rating in a report on Wednesday, June 10th. Weiss Ratings upgraded J. M. Smucker from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Thursday, July 23rd. Finally, Wall Street Zen upgraded J. M. Smucker from a "hold" rating to a "buy" rating in a research report on Saturday, August 8th. Ten equities research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. According to data from MarketBeat.com, J. M. Smucker presently has an average rating of "Moderate Buy" and a consensus target price of $125.53.

Insider Transactions at J. M. Smucker

In other news, insider Jill R. Penrose sold 5,000 shares of the firm's stock in a transaction that occurred on Monday, June 29th. The shares were sold at an average price of $116.69, for a total value of $583,450.00. Following the sale, the insider directly owned 15,795 shares in the company, valued at approximately $1,843,118.55. This trade represents a 24.04% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Jeannette L. Knudsen sold 5,550 shares of the firm's stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $116.29, for a total transaction of $645,409.50. Following the completion of the sale, the insider owned 16,039 shares in the company, valued at approximately $1,865,175.31. The trade was a 25.71% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 18,533 shares of company stock valued at $2,132,914. 2.80% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. California State Teachers Retirement System boosted its holdings in J. M. Smucker by 10,950.6% in the second quarter. California State Teachers Retirement System now owns 13,894,200 shares of the company's stock valued at $1,563,098,000 after acquiring an additional 13,768,467 shares during the last quarter. UBS Group AG raised its holdings in 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 purchasing an additional 2,765,559 shares during the last quarter. Two Sigma Investments LP raised its holdings in 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. Norges Bank acquired a new position in shares of J. M. Smucker in the 4th quarter worth approximately $92,960,000. Finally, Bank of New York Mellon Corp acquired a new position in shares of J. M. Smucker in the 2nd quarter worth approximately $103,113,000. 81.66% of the stock is owned by institutional investors.

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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