International Flavors & Fragrances (NYSE:IFF) Hits New 1-Year High - What's Next?

Key Points

• International Flavors & Fragrances reached a new 52-week high of $89.46, with the stock supported by a consensus “Moderate Buy” rating and an average analyst price target of $92.69.
• The company’s latest quarterly results fell short of expectations, reporting $0.82 in adjusted earnings per share versus a $1.07 consensus estimate and revenue of $1.95 billion against $2.62 billion expected.
• IFF announced a $2.5 billion share buyback program covering up to 12.1% of outstanding shares, alongside a quarterly dividend of $0.40 per share; however, insiders sold shares totaling about $1.32 million over the past 90 days.

International Flavors & Fragrances Inc. (NYSE:IFF - Get Free Report) reached a new 52-week high during trading on Wednesday. The company traded as high as $89.46 and last traded at $89.5890, with a volume of 1,037,786 shares trading hands. The stock had previously closed at $88.20.

Analyst Ratings Changes

A number of equities analysts have recently issued reports on the company. Wall Street Zen upgraded International Flavors & Fragrances from a "sell" rating to a "hold" rating in a research report on Saturday, September 19th. Benchmark lifted their price objective on International Flavors & Fragrances from $100.00 to $105.00 and gave the stock a "buy" rating in a research note on Thursday, August 6th. KeyCorp initiated coverage on International Flavors & Fragrances in a report on Thursday, September 10th. They issued a "sector weight" rating on the stock. Citigroup decreased their target price on shares of International Flavors & Fragrances from $101.00 to $100.00 and set a "buy" rating for the company in a research report on Wednesday, October 7th. Finally, Barclays raised their price target on shares of International Flavors & Fragrances from $90.00 to $96.00 and gave the stock an "overweight" rating in a report on Friday, August 7th. Twelve investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat.com, International Flavors & Fragrances currently has a consensus rating of "Moderate Buy" and an average price target of $92.69.

International Flavors & Fragrances Stock Performance

The stock has a market capitalization of $22.78 billion, a P/E ratio of 82.10, a price-to-earnings-growth ratio of 3.29 and a beta of 0.91. The company has a current ratio of 2.06, a quick ratio of 1.72 and a debt-to-equity ratio of 0.34. The company has a 50-day moving average price of $84.92 and a two-hundred day moving average price of $78.84.

International Flavors & Fragrances (NYSE:IFF - Get Free Report) last announced its earnings results on Tuesday, August 4th. The specialty chemicals company reported $0.82 EPS for the quarter, missing the consensus estimate of $1.07 by ($0.25). International Flavors & Fragrances had a net margin of 2.78% and a return on equity of 7.11%. The business had revenue of $1.95 billion for the quarter, compared to the consensus estimate of $2.62 billion. During the same quarter in the previous year, the company earned $1.15 EPS. The firm's revenue for the quarter was up 1.8% on a year-over-year basis. On average, equities analysts forecast that International Flavors & Fragrances Inc. will post 3.09 earnings per share for the current year.

International Flavors & Fragrances Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, October 9th. Investors of record on Friday, September 18th were given a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a dividend yield of 1.8%. The ex-dividend date was Friday, September 18th. International Flavors & Fragrances's payout ratio is presently 146.79%.

International Flavors & Fragrances declared that its board has initiated a share buyback plan on Tuesday, August 4th that authorizes the company to buy back $2.50 billion in outstanding shares. This buyback authorization authorizes the specialty chemicals company to purchase up to 12.1% of its stock through open market purchases. Stock buyback plans are typically a sign that the company's board of directors believes its stock is undervalued.

Insider Buying and Selling

In other news, CAO Marc Birenkrant sold 1,000 shares of the company's stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $85.00, for a total transaction of $85,000.00. Following the transaction, the chief accounting officer owned 3,446 shares in the company, valued at approximately $292,910. This represents a 22.49% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Michael Deveau sold 8,825 shares of the stock in a transaction dated Thursday, August 6th. The stock was sold at an average price of $85.55, for a total transaction of $754,978.75. Following the transaction, the executive vice president directly owned 5,199 shares in the company, valued at $444,774.45. This trade represents a 62.93% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 15,543 shares of company stock valued at $1,315,659 over the last ninety days. 1.07% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in IFF. BlackRock Inc. acquired a new position in shares of International Flavors & Fragrances during the second quarter valued at about $1,835,955,000. Nykredit A S bought a new stake in shares of International Flavors & Fragrances during the second quarter worth about $223,065,000. Bank of America Corp DE bought a new stake in shares of International Flavors & Fragrances during the second quarter worth about $131,760,000. Bank of New York Mellon Corp acquired a new stake in shares of International Flavors & Fragrances in the 2nd quarter worth about $122,792,000. Finally, Canada Pension Plan Investment Board acquired a new stake in shares of International Flavors & Fragrances in the 2nd quarter worth about $107,310,000. 96.02% of the stock is owned by institutional investors and hedge funds.

About International Flavors & Fragrances

International Flavors & Fragrances Inc NYSE: IFF develops and manufactures ingredients and solutions used in food, beverages, personal care products, fragrances, household products, pharmaceuticals and other consumer goods. The company works with manufacturers to create flavors, fragrances, functional ingredients and sensory experiences for products sold under consumer brands.

IFF's portfolio includes natural and synthetic flavor compounds, fragrance ingredients, specialty ingredients, food texturants, enzymes, cultures, probiotics and pharmaceutical excipients.

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