Marzetti (NASDAQ:MZTI) Reaches New 52-Week Low - Should You Sell?

Key Points

• Marzetti shares fell to a new 52-week low of $100.13 and last traded near $100, below their 50-day and 200-day moving averages of $110.53 and $122.25, respectively.
• Analysts maintain a cautious outlook: two rate the stock Hold and one rates it Sell, producing a consensus “Reduce” rating and an average price target of $135.
• The company reported quarterly EPS of $1.46 on $465.03 million in revenue and announced a $1.00 quarterly dividend, implying a 4.0% yield; CEO Luis Viso also sold nearly half of his direct holdings.

The Marzetti Company (NASDAQ:MZTI - Get Free Report) hit a new 52-week low during trading on Tuesday . The company traded as low as $100.13 and last traded at $100.00, with a volume of 75259 shares. The stock had previously closed at $102.94.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on the company. Stephens restated an "equal weight" rating and set a $140.00 price objective on shares of Marzetti in a report on Wednesday, August 26th. DA Davidson reduced their target price on Marzetti from $168.00 to $130.00 and set a "neutral" rating on the stock in a research report on Wednesday, August 26th. Finally, Weiss Ratings restated a "sell (d+)" rating on shares of Marzetti in a report on Monday, August 17th. Two equities research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Reduce" and an average price target of $135.00.

Marzetti Price Performance

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The company's fifty day moving average is $110.53 and its two-hundred day moving average is $122.25. The firm has a market cap of $2.71 billion, a price-to-earnings ratio of 14.23 and a beta of 0.35. The company has a debt-to-equity ratio of 0.18, a quick ratio of 0.67 and a current ratio of 1.56.

Marzetti (NASDAQ:MZTI - Get Free Report) last posted its earnings results on Tuesday, August 25th. The company reported $1.46 earnings per share (EPS) for the quarter. The business had revenue of $465.03 million during the quarter. Marzetti had a return on equity of 18.22% and a net margin of 9.93%.

Marzetti Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 8th will be given a dividend of $1.00 per share. This represents a $4.00 dividend on an annualized basis and a dividend yield of 4.0%. The ex-dividend date of this dividend is Tuesday, September 8th. Marzetti's payout ratio is presently 57.39%.

Insider Activity

In other Marzetti news, CEO Luis Viso sold 997 shares of the company's stock in a transaction that occurred on Thursday, September 10th. The stock was sold at an average price of $100.81, for a total value of $100,507.57. Following the transaction, the chief executive officer directly owned 1,047 shares of the company's stock, valued at $105,548.07. This represents a 48.78% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. 29.10% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. BlackRock Inc. acquired a new position in Marzetti during the 2nd quarter valued at approximately $313,083,000. First Trust Advisors LP increased its position in Marzetti by 18.2% in the first quarter. First Trust Advisors LP now owns 803,707 shares of the company's stock worth $111,177,000 after buying an additional 123,875 shares during the period. Geode Capital Management LLC bought a new stake in Marzetti in the fourth quarter valued at $103,681,000. Dimensional Fund Advisors LP boosted its holdings in shares of Marzetti by 1.4% during the first quarter. Dimensional Fund Advisors LP now owns 555,702 shares of the company's stock valued at $76,873,000 after acquiring an additional 7,671 shares during the period. Finally, William Blair Investment Management LLC acquired a new position in shares of Marzetti during the fourth quarter valued at $90,041,000. 66.44% of the stock is currently owned by institutional investors.

Marzetti Company Profile

Marzetti is a food manufacturer and marketer known for producing salad dressings, dips, sauces, frozen breads, pasta products and other specialty foods. Its products are sold through retail grocery channels and are also supplied to restaurants, foodservice operators and other institutional customers.

The company's portfolio includes the Marzetti, Sister Schubert's, New York Bakery, Flatout, Reames, Cardini's and Girard's brands, among others. Its offerings range from refrigerated and shelf-stable dressings and dips to frozen rolls, garlic bread, flatbreads, frozen noodles and related prepared foods.

Marzetti traces its origins to a restaurant opened by Teresa Marzetti in Columbus, Ohio, in 1896.

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