Ingredion (NYSE:INGR) Hits New 52-Week Low - Time to Sell?

Key Points

• Ingredion shares hit a new 52-week low, trading as low as $93.46 and closing near $94.16. The stock is down below its 50-day and 200-day moving averages.
• Analyst sentiment remains cautious: eight analysts rate the stock Hold and one rates it Buy, with a consensus target price of $120.29. UBS and Barclays recently reduced their price targets.
• Despite the share-price weakness, Ingredion reported quarterly earnings and revenue above expectations and increased its quarterly dividend to $0.83, implying a 3.5% annual yield.

Shares of Ingredion Incorporated (NYSE:INGR - Get Free Report) reached a new 52-week low during trading on Wednesday. The company traded as low as $93.46 and last traded at $94.1610, with a volume of 242,634 shares traded. The stock had previously closed at $94.71.

Analyst Upgrades and Downgrades

INGR has been the topic of several research analyst reports. Weiss Ratings upgraded Ingredion from a "hold (c-)" rating to a "hold (c)" rating in a report on Friday. UBS Group cut their price objective on Ingredion from $108.00 to $104.00 and set a "neutral" rating for the company in a research note on Monday, October 5th. Zacks Research raised Ingredion from a "strong sell" rating to a "hold" rating in a report on Tuesday, July 14th. Finally, Barclays lowered their price target on Ingredion from $118.00 to $115.00 and set an "equal weight" rating on the stock in a research note on Wednesday, October 14th. One investment analyst has rated the stock with a Buy rating and eight have given a Hold rating to the stock. According to data from MarketBeat, Ingredion currently has a consensus rating of "Hold" and an average target price of $120.29.

Ingredion Stock Down 1.1%

The company has a debt-to-equity ratio of 0.39, a current ratio of 2.80 and a quick ratio of 1.92. The business has a 50 day simple moving average of $99.19 and a 200 day simple moving average of $106.00. The company has a market capitalization of $5.91 billion, a price-to-earnings ratio of 10.22, a PEG ratio of 0.82 and a beta of 0.65.

Ingredion (NYSE:INGR - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The company reported $2.82 earnings per share for the quarter, beating analysts' consensus estimates of $2.71 by $0.11. The firm had revenue of $1.85 billion during the quarter, compared to analysts' expectations of $1.83 billion. Ingredion had a net margin of 8.21% and a return on equity of 15.40%. The business's quarterly revenue was up .9% compared to the same quarter last year. During the same quarter in the previous year, the business posted $2.87 earnings per share. Ingredion has set its FY 2026 guidance at 10.300-10.900 EPS. As a group, equities analysts predict that Ingredion Incorporated will post 10.62 earnings per share for the current fiscal year.

Ingredion Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, October 20th. Investors of record on Thursday, October 1st were given a $0.83 dividend. This is a boost from Ingredion's previous quarterly dividend of $0.82. The ex-dividend date of this dividend was Thursday, October 1st. This represents a $3.32 dividend on an annualized basis and a dividend yield of 3.5%. Ingredion's payout ratio is currently 36.21%.

Insider Activity at Ingredion

In other news, Director David Fischer sold 1,662 shares of the company's stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $102.31, for a total value of $170,039.22. Following the completion of the sale, the director directly owned 19,930 shares of the company's stock, valued at approximately $2,039,038.30. This represents a 7.70% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 1.60% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. BlackRock Inc. purchased a new stake in Ingredion during the second quarter worth about $618,834,000. Dimensional Fund Advisors LP increased its holdings in Ingredion by 6.0% in the first quarter. Dimensional Fund Advisors LP now owns 3,115,136 shares of the company's stock valued at $350,952,000 after buying an additional 175,600 shares in the last quarter. First Trust Advisors LP increased its holdings in Ingredion by 53.1% in the first quarter. First Trust Advisors LP now owns 3,054,149 shares of the company's stock valued at $344,080,000 after buying an additional 1,059,324 shares in the last quarter. Quantinno Capital Management LP lifted its position in shares of Ingredion by 46.9% during the 1st quarter. Quantinno Capital Management LP now owns 930,771 shares of the company's stock valued at $104,861,000 after acquiring an additional 297,007 shares during the period. Finally, Equity Investment Corp acquired a new stake in shares of Ingredion during the 2nd quarter valued at approximately $82,499,000. 85.27% of the stock is currently owned by institutional investors and hedge funds.

Ingredion Company Profile

Ingredion Incorporated NYSE: INGR is a global ingredient solutions provider that develops and produces starches, sweeteners, texturizers, fibers, plant-based proteins and other specialty ingredients. The company processes plant-based raw materials, including corn, tapioca, potato, rice and other grains, into ingredients used by manufacturers across a range of industries.

Ingredion's products support food and beverage applications such as bakery products, dairy and alternative dairy, confectionery, beverages and prepared foods.

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