Marzetti (NASDAQ:MZTI) Sets New 52-Week Low - Should You Sell?

Key Points

• Marzetti (NASDAQ:MZTI) hit a new 52-week low, trading as low as $136.33 (last $136.70) and currently sits below its 50-day and 200-day moving averages of $152.19 and $161.88.
• Analysts have largely moved to Hold ratings after trimming price targets (one Buy, three Hold), with a consensus target of $182.67, implying potential upside from current levels.
• The company missed quarterly EPS ($2.15 vs. $2.23) while revenue rose 1.7% year-over-year, and it pays a $1.00 quarterly dividend (annualized $4.00, yield ~2.9%) with a payout ratio around 61%.

The Marzetti Company (NASDAQ:MZTI - Get Free Report) shares reached a new 52-week low during mid-day trading on Wednesday . The company traded as low as $136.33 and last traded at $136.70, with a volume of 370380 shares trading hands. The stock had previously closed at $142.31.

Wall Street Analysts Forecast Growth

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

Marzetti Price Performance

The company has a market cap of $3.75 billion, a price-to-earnings ratio of 20.92 and a beta of 0.47. The firm has a 50-day moving average price of $152.19 and a 200 day moving average price of $161.88.

Marzetti (NASDAQ:MZTI - Get Free Report) last released its quarterly earnings results on Tuesday, February 3rd. The company reported $2.15 earnings per share for the quarter, missing the consensus estimate of $2.23 by ($0.08). The firm had revenue of $509.77 million for the quarter. Marzetti had a return on equity of 18.55% and a net margin of 9.25%.The firm's revenue was up 1.7% compared to the same quarter last year. On average, equities analysts anticipate that The Marzetti Company will post 6.8 EPS for the current fiscal year.

Marzetti Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Friday, March 6th were issued a dividend of $1.00 per share. The ex-dividend date of this dividend was Friday, March 6th. This represents a $4.00 dividend on an annualized basis and a dividend yield of 2.9%. Marzetti's dividend payout ratio (DPR) is currently 61.26%.

Hedge Funds Weigh In On Marzetti

A number of hedge funds have recently bought and sold shares of MZTI. CIBC Private Wealth Group LLC acquired a new position in Marzetti in the fourth quarter valued at about $32,000. Parkside Financial Bank & Trust bought a new stake in shares of Marzetti during the 4th quarter worth approximately $32,000. Thurston Springer Miller Herd & Titak Inc. bought a new stake in shares of Marzetti during the 4th quarter worth approximately $33,000. Caitong International Asset Management Co. Ltd acquired a new stake in shares of Marzetti during the 4th quarter worth approximately $33,000. Finally, Rockefeller Capital Management L.P. acquired a new stake in shares of Marzetti during the 4th quarter worth approximately $35,000. 66.44% of the stock is owned by institutional investors.

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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