Marzetti (NASDAQ:MZTI) Reaches New 52-Week Low - What's Next?

Key Points

• Shares hit a new 52-week low, trading as low as $122.63 (last $124.36) and sitting well below the 50-day ($145.69) and 200-day ($158.84) moving averages.
• Analysts have trimmed expectations: several firms cut price targets (e.g., Stephens to $160, DA Davidson to $168) and the consensus rating is "Hold" with an average target of $176.
• Operational snapshot: the company missed quarterly EPS ($2.15 vs. $2.23 expected) while revenue rose 1.7% to $509.8M, and it pays a $1.00 quarterly dividend (3.2% yield, 61% payout ratio).

The Marzetti Company (NASDAQ:MZTI - Get Free Report)'s share price reached a new 52-week low during trading on Friday . The stock traded as low as $122.63 and last traded at $124.3610, with a volume of 472989 shares. The stock had previously closed at $130.28.

Analysts Set New Price Targets

Several research firms have issued reports on MZTI. Stephens dropped their price objective on Marzetti from $180.00 to $160.00 and set an "equal weight" rating on the stock in a report on Monday. Weiss Ratings restated a "hold (c)" rating on shares of Marzetti in a report on Friday, January 9th. Wall Street Zen downgraded Marzetti from a "buy" rating to a "hold" rating in a report on Saturday, January 31st. Finally, 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. One investment analyst has rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $176.00.

Marzetti Stock Performance

The firm has a market capitalization of $3.41 billion, a P/E ratio of 19.05 and a beta of 0.47. The stock has a fifty day moving average price of $145.69 and a two-hundred day moving average price of $158.84.

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

Marzetti Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, March 31st. Investors of record on Friday, March 6th were given a dividend of $1.00 per share. The ex-dividend date was Friday, March 6th. This represents a $4.00 dividend on an annualized basis and a yield of 3.2%. Marzetti's payout ratio is currently 61.26%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. CIBC Private Wealth Group LLC acquired a new position in Marzetti during the 4th quarter valued at approximately $32,000. Parkside Financial Bank & Trust acquired a new position in Marzetti during the 4th quarter valued at approximately $32,000. Thurston Springer Miller Herd & Titak Inc. acquired a new position in Marzetti during the 4th quarter worth $33,000. Caitong International Asset Management Co. Ltd acquired a new position in Marzetti during the 4th quarter worth $33,000. Finally, Rockefeller Capital Management L.P. acquired a new position in Marzetti during the 4th quarter worth $35,000. Institutional investors and hedge funds own 66.44% of the company's stock.

About Marzetti

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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