International Flavors & Fragrances (NYSE:IFF) Sets New 12-Month High - What's Next?

Key Points

• International Flavors & Fragrances shares reached a new 52-week high of $94.59, while analysts maintained a generally positive outlook. The stock carries a “Moderate Buy” consensus rating and a $94.28 average price target, with several firms raising targets to as high as $105.
• The company’s latest quarterly results fell short of expectations, reporting $0.82 in earnings per share versus the $1.07 consensus and revenue of $1.95 billion versus estimates of $2.62 billion. Despite the earnings miss, revenue increased 1.8% year over year.
• IFF approved a $2.5 billion share-repurchase program, covering up to 12.1% of outstanding shares, and paid a quarterly dividend of $0.40 per share. The annualized dividend yield was 1.7%, although the payout ratio stood at a high 146.79%.

International Flavors & Fragrances Inc. (NYSE:IFF - Get Free Report) shares reached a new 52-week high on Monday. The stock traded as high as $94.59 and last traded at $94.4490, with a volume of 1,483,613 shares traded. The stock had previously closed at $94.15.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on IFF. Weiss Ratings raised shares of International Flavors & Fragrances from a "hold (c-)" rating to a "hold (c)" rating in a research note on Thursday, October 8th. Morgan Stanley lifted their price target on shares of International Flavors & Fragrances from $93.00 to $95.00 and gave the company an "overweight" rating in a research report on Wednesday, July 1st. Benchmark lifted their target price on International Flavors & Fragrances from $100.00 to $105.00 and gave the stock a "buy" rating in a report on Thursday, August 6th. Argus boosted their target price on shares of International Flavors & Fragrances from $85.00 to $95.00 and gave the company a "buy" rating in a research note on Wednesday, October 7th. Finally, Barclays boosted their price target on International Flavors & Fragrances from $96.00 to $105.00 and gave the company an "overweight" rating in a research note on Friday, October 16th. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat.com, International Flavors & Fragrances currently has a consensus rating of "Moderate Buy" and a consensus target price of $94.28.

International Flavors & Fragrances Price Performance

The stock has a market capitalization of $24.05 billion, a PE ratio of 85.96, a price-to-earnings-growth ratio of 4.04 and a beta of 0.91. The company has a quick ratio of 1.72, a current ratio of 2.06 and a debt-to-equity ratio of 0.34. The stock's 50 day moving average price is $85.95 and its 200-day moving average price is $79.94.

International Flavors & Fragrances (NYSE:IFF - Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The specialty chemicals company reported $0.82 earnings per share 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 business had revenue of $1.95 billion during the quarter, compared to analyst estimates of $2.62 billion. During the same period in the prior year, the business posted $1.15 EPS. International Flavors & Fragrances's revenue was up 1.8% compared to the same quarter last year. As a group, equities analysts forecast that International Flavors & Fragrances Inc. will post 3.24 EPS for the current year.

International Flavors & Fragrances Dividend Announcement

The company 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. This represents a $1.60 annualized dividend and a yield of 1.7%. The ex-dividend date of this dividend was Friday, September 18th. International Flavors & Fragrances's payout ratio is currently 146.79%.

International Flavors & Fragrances declared that its Board of Directors has initiated a stock repurchase plan on Tuesday, August 4th that authorizes the company to repurchase $2.50 billion in outstanding shares. This repurchase authorization authorizes the specialty chemicals company to purchase up to 12.1% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's board believes its shares are undervalued.

Insider Buying and Selling

In other International Flavors & Fragrances news, insider De Mendonca Ana Paula Teles sold 5,718 shares of International Flavors & Fragrances stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $83.19, for a total value of $475,680.42. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, EVP Michael Deveau sold 8,825 shares of the firm's stock in a transaction on Thursday, August 6th. The stock was sold at an average price of $85.55, for a total value of $754,978.75. Following the sale, the executive vice president owned 5,199 shares in the company, valued at $444,774.45. This trade represents a 62.93% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 15,543 shares of company stock valued at $1,315,659 over the last quarter. 1.07% of the stock is currently owned by insiders.

Institutional Trading of International Flavors & Fragrances

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