McCormick & Company, Incorporated Sees Unusually Large Options Volume (NYSE:MKC)

Key Points

• McCormick (NYSE:MKC) saw unusually heavy options activity, with traders buying 5,946 call options — about 178% above its typical volume.
• The company recently reported better-than-expected quarterly results, posting EPS of $0.66 versus estimates of $0.61 and revenue of $1.87 billion, up 16.7% year over year.
• McCormick also declared a quarterly dividend of $0.48 per share, equal to an annualized yield of about 4.0%, while analysts currently rate the stock a consensus Hold.

McCormick & Company, Incorporated (NYSE:MKC - Get Free Report) was the recipient of unusually large options trading on Wednesday. Traders acquired 5,946 call options on the stock. This represents an increase of approximately 178% compared to the typical volume of 2,136 call options.

McCormick & Company, Incorporated Stock Performance

NYSE:MKC traded up $0.88 on Wednesday, hitting $48.26. The stock had a trading volume of 2,709,689 shares, compared to its average volume of 4,240,527. The business's 50-day simple moving average is $48.68 and its two-hundred day simple moving average is $58.24. McCormick & Company, Incorporated has a 52-week low of $44.82 and a 52-week high of $78.16. The company has a quick ratio of 0.36, a current ratio of 0.76 and a debt-to-equity ratio of 0.48. The stock has a market cap of $12.97 billion, a price-to-earnings ratio of 7.93, a price-to-earnings-growth ratio of 2.26 and a beta of 0.65.

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

McCormick & Company, Incorporated Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, July 20th. Investors of record on Monday, July 6th will be issued a $0.48 dividend. The ex-dividend date of this dividend is Monday, July 6th. This represents a $1.92 dividend on an annualized basis and a yield of 4.0%. McCormick & Company, Incorporated's payout ratio is currently 31.48%.

Insider Activity

In other McCormick & Company, Incorporated news, Director Gavin Hattersley purchased 2,000 shares of the stock in a transaction dated 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 completion of the acquisition, the director directly owned 2,906 shares in the company, valued at $153,959.88. This trade represents a 220.75% increase in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 10.60% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in MKC. GoalVest Advisory LLC bought a new stake in McCormick & Company, Incorporated in the 4th quarter valued at $28,000. Deseret Mutual Benefit Administrators grew its position in shares of McCormick & Company, Incorporated by 67.8% during the fourth quarter. Deseret Mutual Benefit Administrators now owns 406 shares of the company's stock valued at $28,000 after purchasing an additional 164 shares in the last quarter. Motiv8 Investments LLC bought a new stake in shares of McCormick & Company, Incorporated in the fourth quarter worth about $28,000. Zions Bancorporation National Association UT increased its holdings in shares of McCormick & Company, Incorporated by 340.0% in the fourth quarter. Zions Bancorporation National Association UT now owns 462 shares of the company's stock worth $31,000 after purchasing an additional 357 shares during the last quarter. Finally, Union Savings Bank purchased a new stake in shares of McCormick & Company, Incorporated in the fourth quarter worth about $36,000. 79.74% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

A number of equities analysts have weighed in on the company. Stifel Nicolaus decreased their target price on McCormick & Company, Incorporated from $65.00 to $55.00 and set a "hold" rating for the company in a research report on Wednesday, April 1st. HSBC decreased their price objective on shares of McCormick & Company, Incorporated from $69.00 to $55.00 and set a "hold" rating for the company in a report on Thursday, March 26th. UBS Group dropped their target price on shares of McCormick & Company, Incorporated from $53.00 to $51.00 and set a "neutral" rating on the stock in a report on Tuesday, June 2nd. TD Cowen cut their target price on shares of McCormick & Company, Incorporated from $75.00 to $64.00 and set a "buy" rating for the company in a research report on Wednesday, March 25th. Finally, BTIG Research began coverage on shares of McCormick & Company, Incorporated in a research note on Tuesday, April 14th. They set a "neutral" rating for the company. Six equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $61.90.

About McCormick & Company, Incorporated

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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