J. M. Smucker (NYSE:SJM) Stock Price Crosses Above 200-Day Moving Average - Here's Why

Key Points

• J. M. Smucker shares climbed above their 200-day moving average, reaching $118.01 and last trading near $116.74. The stock has a consensus “Moderate Buy” rating and an average analyst price target of $136.25.
• The company reported strong quarterly results, with earnings of $3.24 per share versus expectations of $2.22 and revenue of $2.22 billion, up 5% year over year.
• Smucker raised its quarterly dividend to $1.12 per share, equivalent to a 3.8% yield, although its payout ratio remains elevated at 209.35%.

Shares of The J. M. Smucker Company (NYSE:SJM - Get Free Report) passed above its 200-day moving average during trading on Tuesday. The stock has a 200-day moving average of $110.64 and traded as high as $118.01. J. M. Smucker shares last traded at $116.7350, with a volume of 933,460 shares traded.

Analysts Set New Price Targets

Several equities analysts have commented on the stock. Deutsche Bank Aktiengesellschaft set a $125.00 target price on shares of J. M. Smucker in a research report on Thursday, August 27th. Jefferies Financial Group upped their target price on J. M. Smucker from $129.00 to $140.00 and gave the company a "buy" rating in a report on Wednesday, August 19th. Morgan Stanley increased their price target on J. M. Smucker from $106.00 to $110.00 and gave the company an "equal weight" rating in a research report on Wednesday, June 10th. Weiss Ratings upgraded J. M. Smucker from a "hold (c-)" rating to a "hold (c)" rating in a report on Wednesday, August 26th. Finally, Barclays lifted their price target on J. M. Smucker from $125.00 to $145.00 and gave the stock an "equal weight" rating in a report on Thursday, August 27th. Ten research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat.com, J. M. Smucker has a consensus rating of "Moderate Buy" and a consensus target price of $136.25.

J. M. Smucker Trading Up 0.4%

The firm has a market cap of $12.47 billion, a P/E ratio of 54.55, a price-to-earnings-growth ratio of 1.57 and a beta of 0.28. The company has a quick ratio of 0.35, a current ratio of 0.87 and a debt-to-equity ratio of 1.11. The firm's 50-day simple moving average is $122.46 and its 200 day simple moving average is $110.64.

J. M. Smucker (NYSE:SJM - Get Free Report) last released its earnings results on Wednesday, August 26th. The company reported $3.24 earnings per share for the quarter, beating analysts' consensus estimates of $2.22 by $1.02. J. M. Smucker had a net margin of 2.51% and a return on equity of 19.85%. The firm had revenue of $2.22 billion for the quarter, compared to analysts' expectations of $2.13 billion. During the same period in the previous year, the company earned $1.90 earnings per share. The company's quarterly revenue was up 5.0% on a year-over-year basis. J. M. Smucker has set its FY 2027 guidance at 10.500-11.000 EPS. As a group, analysts expect that The J. M. Smucker Company will post 10.71 earnings per share for the current year.

J. M. Smucker Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 1st. Shareholders of record on Friday, August 14th were issued a dividend of $1.12 per share. This represents a $4.48 annualized dividend and a yield of 3.8%. This is a positive change from J. M. Smucker's previous quarterly dividend of $1.10. The ex-dividend date of this dividend was Friday, August 14th. J. M. Smucker's dividend payout ratio is currently 209.35%.

Insiders Place Their Bets

In other news, insider Robert D. Ferguson sold 2,522 shares of the stock in a transaction on Monday, August 31st. The stock was sold at an average price of $132.41, for a total transaction of $333,938.02. Following the completion of the transaction, the insider owned 36,295 shares in the company, valued at approximately $4,805,820.95. This represents a 6.50% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Tucker H. Marshall sold 18,482 shares of the stock in a transaction on Friday, August 28th. The stock was sold at an average price of $132.05, for a total value of $2,440,548.10. Following the transaction, the chief financial officer owned 38,699 shares of the company's stock, valued at $5,110,202.95. The trade was a 32.32% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 2.80% of the company's stock.

Institutional Investors Weigh In On J. M. Smucker

Several institutional investors have recently added to or reduced their stakes in SJM. Archer Investment Corp purchased a new position in shares of J. M. Smucker in the second quarter worth about $25,000. MCF Advisors LLC raised its position in shares of J. M. Smucker by 68.1% in the fourth quarter. MCF Advisors LLC now owns 311 shares of the company's stock valued at $30,000 after purchasing an additional 126 shares during the period. Hilton Head Capital Partners LLC purchased a new stake in shares of J. M. Smucker during the 4th quarter valued at approximately $42,000. Sankala Group LLC purchased a new stake in shares of J. M. Smucker during the 4th quarter valued at approximately $46,000. Finally, EverSource Wealth Advisors LLC boosted its holdings in J. M. Smucker by 89.5% in the 1st quarter. EverSource Wealth Advisors LLC now owns 523 shares of the company's stock worth $50,000 after buying an additional 247 shares during the period. 81.66% of the stock is owned by hedge funds and other institutional investors.

About J. M. Smucker

The J. M. Smucker Company NYSE: SJM is a food and beverage company headquartered in Orrville, Ohio. Founded in 1897 by Jerome Monroe Smucker, the company began as a producer of apple butter and has expanded into a diversified portfolio of branded consumer products.

Smucker's products include coffee, pet food and treats, fruit spreads, peanut butter, baking ingredients, and sweet baked snacks. Its well-known brands include Folgers, Café Bustelo, Dunkin' packaged coffee, Jif, Smucker's, Milk-Bone, Meow Mix, Kibbles 'n Bits, 9Lives, Natural Balance, Hostess and Little Debbie snack products in select categories.

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