Ingredion (NYSE:INGR) Reaches New 1-Year Low Following Weak Earnings

Key Points

• Ingredion shares hit a new 52-week low, trading as low as $90 after closing the prior session at $97.36.
• Quarterly EPS was $2.28, missing the $2.59 consensus estimate; revenue of $1.79 billion also fell short of forecasts and declined 1.3% year over year.
• The company raised its quarterly dividend to $0.83 per share, equivalent to a 3.5% yield. Analysts’ consensus rating remains “Hold.”

Ingredion Incorporated (NYSE:INGR - Get Free Report)'s stock price hit a new 52-week low during trading on Thursday following a dissappointing earnings announcement. The company traded as low as $90.00 and last traded at $92.3230, with a volume of 54,360 shares trading hands. The stock had previously closed at $97.36.

The company reported $2.28 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.59 by ($0.31). The business had revenue of $1.79 billion for the quarter, compared to analysts' expectations of $1.80 billion. Ingredion had a return on equity of 15.40% and a net margin of 8.21%. The business's quarterly revenue was down 1.3% compared to the same quarter last year. During the same period in the prior year, the business posted $2.75 earnings per share.

Ingredion Increases Dividend

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

Wall Street Analyst Weigh In

A number of research analysts have weighed in on the stock. Weiss Ratings raised shares of Ingredion from a "hold (c-)" rating to a "hold (c)" rating in a research report on Friday, October 23rd. Barclays decreased their target price on Ingredion from $118.00 to $115.00 and set an "equal weight" rating for the company in a research report on Wednesday, October 14th. UBS Group decreased their price target on Ingredion from $108.00 to $104.00 and set a "neutral" rating for the company in a research note on Monday, October 5th. Finally, Zacks Research upgraded Ingredion from a "strong sell" rating to a "hold" rating in a research note on Tuesday, July 14th. One research analyst has rated the stock with a Buy rating and eight have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $119.83.

Institutional Trading of Ingredion

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Glenview Trust Co boosted its position in Ingredion by 4.1% in the third quarter. Glenview Trust Co now owns 3,034 shares of the company's stock valued at $291,000 after buying an additional 120 shares during the last quarter. Nisa Investment Advisors LLC boosted its position in shares of Ingredion by 0.6% during the 3rd quarter. Nisa Investment Advisors LLC now owns 24,795 shares of the company's stock worth $2,376,000 after purchasing an additional 141 shares during the period. Lazard Asset Management LLC increased its stake in Ingredion by 0.4% during the 1st quarter. Lazard Asset Management LLC now owns 32,525 shares of the company's stock worth $3,664,000 after buying an additional 143 shares during the period. Net Worth Advisory Group boosted its stake in shares of Ingredion by 2.9% in the 3rd quarter. Net Worth Advisory Group now owns 5,320 shares of the company's stock valued at $505,000 after buying an additional 148 shares during the period. Finally, Root Financial Partners LLC increased its holdings in Ingredion by 83.7% in the first quarter. Root Financial Partners LLC now owns 371 shares of the company's stock valued at $42,000 after buying an additional 169 shares during the last quarter. Institutional investors own 85.27% of the company's stock.

Ingredion Price Performance

The stock has a market capitalization of $6.05 billion, a PE ratio of 10.39, a P/E/G ratio of 0.83 and a beta of 0.63. The stock's 50-day moving average is $98.04 and its 200 day moving average is $105.48. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.92 and a current ratio of 2.80.

About Ingredion

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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