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

Key Points

• International Flavors & Fragrances shares reached a new 52-week high of $91.98, supported by a consensus “Moderate Buy” rating and an average analyst price target of $93.22.
• The company’s latest quarterly results missed expectations, with EPS of $0.82 versus $1.07 forecast and revenue of $1.95 billion versus $2.62 billion expected, despite 1.8% year-over-year revenue growth.
• IFF announced a $2.5 billion share-repurchase program covering up to 12.1% of shares and maintained a quarterly dividend of $0.40, equivalent to a 1.7% yield.

International Flavors & Fragrances Inc. (NYSE:IFF - Get Free Report) shares hit a new 52-week high during mid-day trading on Tuesday. The company traded as high as $91.98 and last traded at $91.7520, with a volume of 50,344 shares changing hands. The stock had previously closed at $90.96.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on IFF shares. Morgan Stanley raised their price target on shares of International Flavors & Fragrances from $93.00 to $95.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 1st. Weiss Ratings upgraded shares of International Flavors & Fragrances from a "hold (c-)" rating to a "hold (c)" rating in a research note on Thursday, October 8th. Zacks Research raised shares of International Flavors & Fragrances from a "strong sell" rating to a "hold" rating in a report on Monday, September 21st. Barclays increased their price objective on shares of International Flavors & Fragrances from $96.00 to $105.00 and gave the company an "overweight" rating in a research note on Friday. Finally, KeyCorp started coverage on shares of International Flavors & Fragrances in a research note on Thursday, September 10th. They set a "sector weight" rating on the stock. Twelve research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $93.22.

International Flavors & Fragrances Price Performance

The company has a market capitalization of $23.45 billion, a P/E ratio of 84.24, a price-to-earnings-growth ratio of 3.52 and a beta of 0.91. The company has a fifty day moving average price of $85.28 and a 200 day moving average price of $79.37. The company has a debt-to-equity ratio of 0.34, a current ratio of 2.06 and a quick ratio of 1.72.

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

International Flavors & Fragrances Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, October 9th. Shareholders of record on Friday, September 18th were given a $0.40 dividend. The ex-dividend date of this dividend was Friday, September 18th. This represents a $1.60 annualized dividend and a yield of 1.7%. International Flavors & Fragrances's dividend payout ratio (DPR) is currently 146.79%.

International Flavors & Fragrances announced that its Board of Directors has authorized a stock buyback program on Tuesday, August 4th that authorizes the company to buy back $2.50 billion in shares. This repurchase authorization authorizes the specialty chemicals company to repurchase up to 12.1% of its shares through open market purchases. Share repurchase programs are usually a sign that the company's leadership believes its stock is undervalued.

Insider Buying and Selling at International Flavors & Fragrances

In other International Flavors & Fragrances news, CAO Marc Birenkrant sold 1,000 shares of the firm's stock in a transaction on Friday, August 7th. The stock was sold at an average price of $85.00, for a total value of $85,000.00. Following the sale, the chief accounting officer directly owned 3,446 shares in the company, valued at approximately $292,910. This trade represents a 22.49% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider De Mendonca Ana Paula Teles sold 5,718 shares of the business's stock in a transaction on Monday, August 17th. The shares were sold at an average price of $83.19, for a total transaction of $475,680.42. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 15,543 shares of company stock worth $1,315,659. 1.07% of the stock is owned by insiders.

Institutional Trading of International Flavors & Fragrances

Several hedge funds have recently bought and sold shares of the company. Root Financial Partners LLC increased its stake in shares of International Flavors & Fragrances by 97.9% in the first quarter. Root Financial Partners LLC now owns 554 shares of the specialty chemicals company's stock valued at $40,000 after purchasing an additional 274 shares during the period. Parkside Financial Bank & Trust raised its holdings in shares of International Flavors & Fragrances by 27.9% during the second quarter. Parkside Financial Bank & Trust now owns 706 shares of the specialty chemicals company's stock valued at $56,000 after buying an additional 154 shares during the last quarter. Westpac Banking Corp acquired a new position in shares of International Flavors & Fragrances during the second quarter worth approximately $91,000. Mather Group LLC. boosted its position in shares of International Flavors & Fragrances by 24.0% during the third quarter. Mather Group LLC. now owns 1,393 shares of the specialty chemicals company's stock worth $116,000 after buying an additional 270 shares during the period. Finally, Livforsakringsbolaget Skandia Omsesidigt acquired a new position in shares of International Flavors & Fragrances during the second quarter worth approximately $148,000. 96.02% of the stock is currently owned by institutional investors.

About International Flavors & Fragrances

International Flavors & Fragrances Inc NYSE: IFF develops and manufactures ingredients, flavor systems, fragrances and specialty solutions used in consumer and industrial products. Its offerings support food and beverage manufacturers, fragrance and personal care companies, household-product makers, pharmaceutical businesses and other customers.

The company's portfolio includes flavors for beverages, dairy products, sweet goods, savory foods and other applications; fragrances for fine fragrance, personal care and home care products; and functional ingredients, enzymes, cultures, natural extracts and other specialty materials.

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