McCormick & Company, Incorporated (NYSE:MKC) Reaches New 1-Year Low - Time to Sell?

Key Points

• McCormick & Company shares fell to a new 52-week low of about $47.26, extending a sharp decline below its 50-day and 200-day moving averages.
• Several analysts cut price targets on the stock, and the consensus rating is now Hold with an average price target of $64.27.
• Despite the weak share price, McCormick recently beat earnings and revenue estimates for the quarter and continues to offer a 4.1% dividend yield.

McCormick & Company, Incorporated (NYSE:MKC - Get Free Report) shares hit a new 52-week low during mid-day trading on Monday . The stock traded as low as $47.26 and last traded at $47.2460, with a volume of 703312 shares changing hands. The stock had previously closed at $48.32.

Analysts Set New Price Targets

MKC has been the topic of a number of analyst reports. Sanford C. Bernstein decreased their target price on shares of McCormick & Company, Incorporated from $85.00 to $77.00 and set an "outperform" rating on the stock in a research report on Tuesday, March 24th. Barclays reduced their price target on McCormick & Company, Incorporated from $67.00 to $58.00 and set an "equal weight" rating on the stock in a research note on Tuesday, March 31st. Jefferies Financial Group decreased their price objective on McCormick & Company, Incorporated from $81.00 to $64.00 and set a "buy" rating on the stock in a report on Wednesday, April 1st. Deutsche Bank Aktiengesellschaft decreased their price objective on McCormick & Company, Incorporated from $70.00 to $59.00 and set a "buy" rating on the stock in a report on Monday, March 30th. Finally, BNP Paribas Exane lowered their price objective on McCormick & Company, Incorporated from $83.00 to $75.00 and set an "outperform" rating for the company in a research report on Wednesday, April 1st. Six research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $64.27.

McCormick & Company, Incorporated Price Performance

The company's 50-day moving average is $55.38 and its 200-day moving average is $62.60. The firm has a market capitalization of $12.64 billion, a price-to-earnings ratio of 7.71, a PEG ratio of 2.37 and a beta of 0.68. The company has a debt-to-equity ratio of 0.48, a current ratio of 0.76 and a quick ratio of 0.36.

McCormick & Company, Incorporated (NYSE:MKC - Get Free Report) last issued its quarterly earnings results on Tuesday, March 31st. The company reported $0.66 EPS for the quarter, topping the consensus estimate of $0.61 by $0.05. The firm had revenue of $1.87 billion during the quarter, compared to analyst estimates of $1.79 billion. McCormick & Company, Incorporated had a net margin of 23.12% and a return on equity of 13.29%. McCormick & Company, Incorporated's revenue for the quarter was up 16.7% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.60 earnings per share. On average, research analysts expect that McCormick & Company, Incorporated will post 3.09 earnings per share for the current year.

McCormick & Company, Incorporated Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Monday, April 27th. Investors of record on Monday, April 20th were given a $0.48 dividend. This represents a $1.92 annualized dividend and a dividend yield of 4.1%. The ex-dividend date of this dividend was Monday, April 20th. McCormick & Company, Incorporated's dividend payout ratio (DPR) is 31.48%.

Insiders Place Their Bets

In related news, major shareholder Lawrence Erik Kurzius sold 50,000 shares of McCormick & Company, Incorporated stock in a transaction on Thursday, February 12th. The stock was sold at an average price of $71.63, for a total value of $3,581,500.00. Following the transaction, the insider owned 296,992 shares in the company, valued at approximately $21,273,536.96. This trade represents a 14.41% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Gavin Hattersley purchased 2,000 shares of the stock in a transaction on Friday, April 10th. The shares were purchased at an average cost of $52.98 per share, with a total value of $105,960.00. Following the transaction, the director owned 2,906 shares of the company's stock, valued at $153,959.88. This trade represents a 220.75% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 10.60% of the stock is currently owned by company insiders.

Institutional Trading of McCormick & Company, Incorporated

Institutional investors and hedge funds have recently bought and sold shares of the business. Aristotle Capital Management LLC acquired a new position in McCormick & Company, Incorporated during the fourth quarter valued at approximately $259,918,000. Invesco Ltd. increased its position in shares of McCormick & Company, Incorporated by 66.7% in the third quarter. Invesco Ltd. now owns 6,232,337 shares of the company's stock worth $417,006,000 after acquiring an additional 2,494,544 shares in the last quarter. Wellington Management Group LLP increased its position in shares of McCormick & Company, Incorporated by 67.2% in the third quarter. Wellington Management Group LLP now owns 2,797,533 shares of the company's stock worth $187,183,000 after acquiring an additional 1,124,003 shares in the last quarter. Diamant Asset Management Inc. raised its stake in shares of McCormick & Company, Incorporated by 4,848.6% in the 1st quarter. Diamant Asset Management Inc. now owns 1,046,630 shares of the company's stock valued at $52,792,000 after acquiring an additional 1,025,480 shares during the period. Finally, Engineers Gate Manager LP purchased a new position in shares of McCormick & Company, Incorporated in the 4th quarter valued at $64,522,000. Institutional investors and hedge funds own 79.74% of the company's stock.

McCormick & Company, Incorporated Company Profile

McCormick & Company, Incorporated NYSE: MKC is a global leader in spices, seasonings and flavor solutions. Headquartered in Hunt Valley, Maryland, the company traces its origins to the late 19th century and has grown into a major manufacturer and marketer of branded and private‑label flavor products for consumer, industrial and foodservice markets.

McCormick's product portfolio includes pure spices and herbs, blended seasonings, marinades, rubs, sauces, extracts and specialty flavorings, along with ingredient systems and custom flavor development for manufacturers and foodservice operators.

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