Marzetti (NASDAQ:MZTI) Hits New 1-Year Low - Time to Sell?

Key Points

• 52‑week low: Marzetti shares hit a new 52‑week low, trading as low as $133.06 (last $133.25), well below its 50‑day ($150.71) and 200‑day ($160.88) moving averages.
• Analyst sentiment: Brokers have trimmed ratings and price targets recently, leaving a MarketBeat consensus of "Hold" with a $182.67 target (one Buy, three Holds).
• Fundamentals: Marzetti missed quarterly EPS ($2.15 vs. $2.23 est.) while revenue rose 1.7% YoY, and it pays a $1.00 quarterly dividend (annualized $4.00, 3.0% yield) with a ~61.3% payout ratio.

The Marzetti Company (NASDAQ:MZTI - Get Free Report) shares hit a new 52-week low during trading on Tuesday . The stock traded as low as $133.06 and last traded at $133.25, with a volume of 349375 shares changing hands. The stock had previously closed at $138.86.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on MZTI. Wall Street Zen downgraded Marzetti from a "buy" rating to a "hold" rating in a research note on Saturday, January 31st. Stephens decreased their price target on Marzetti from $190.00 to $180.00 and set an "equal weight" rating for the company in a research note on Wednesday, February 4th. DA Davidson lowered their price target on Marzetti from $184.00 to $168.00 and set a "neutral" rating for the company in a report on Monday, March 16th. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Marzetti in a research note on Friday, January 9th. One research analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, Marzetti currently has a consensus rating of "Hold" and a consensus target price of $182.67.

Marzetti Price Performance

The firm's fifty day simple moving average is $150.71 and its 200 day simple moving average is $160.88. The company has a market capitalization of $3.65 billion, a PE ratio of 20.41 and a beta of 0.47.

Marzetti (NASDAQ:MZTI - Get Free Report) last issued its quarterly earnings data on Tuesday, February 3rd. The company reported $2.15 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.23 by ($0.08). Marzetti had a net margin of 9.25% and a return on equity of 18.55%. The company had revenue of $509.77 million during the quarter. The firm's revenue was up 1.7% on a year-over-year basis.

Marzetti Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Friday, March 6th were issued a $1.00 dividend. The ex-dividend date of this dividend was Friday, March 6th. This represents a $4.00 dividend on an annualized basis and a yield of 3.0%. Marzetti's payout ratio is presently 61.26%.

Institutional Investors Weigh In On Marzetti

A number of hedge funds and other institutional investors have recently made changes to their positions in MZTI. Retirement Systems of Alabama purchased a new stake in Marzetti during the fourth quarter worth $4,014,000. SG Americas Securities LLC purchased a new position in Marzetti in the fourth quarter valued at $2,226,000. Independence Bank of Kentucky acquired a new position in shares of Marzetti in the fourth quarter worth about $598,000. Pullen Investment Management LLC acquired a new position in shares of Marzetti in the fourth quarter worth about $1,029,000. Finally, Exchange Traded Concepts LLC purchased a new stake in shares of Marzetti during the 4th quarter worth about $898,000. Institutional investors and hedge funds own 66.44% of the company's stock.

Marzetti Company Profile

Lancaster Colony Corporation engages in the manufacturing and marketing of specialty food products for the retail and foodservice channels in the United States. It operates in two segments, Retail and Foodservice. The company offers frozen garlic bread under the New York BRAND Bakery; frozen Parkerhouse style yeast and dinner rolls under the Sister Schubert's brand; salad dressings under the Marzetti, Simply Dressed, Cardini's, and Girard's brands; vegetable and fruit dips under the Marzetti brand; croutons and salad toppings under the New York BRAND Bakery, Chatham Village, and Marzetti brands; and frozen pasta under the Marzetti Frozen Pasta brand.

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