McCormick & Company, Incorporated (NYSE:MKC) Shares Up 1.6% - Still a Buy?

Key Points

• McCormick shares rose 1.6% to $46.44 on above-average trading volume, though the stock remains below its 50-day and 200-day moving averages of roughly $50.
• Analysts maintain a consensus “Hold” rating with a $55.30 price target; five analysts rate the stock a Buy, seven a Hold, and one a Sell.
• The company exceeded quarterly expectations with $0.86 EPS and $2.02 billion in revenue, while maintaining a $0.48 quarterly dividend, equivalent to a 4.1% yield.

McCormick & Company, Incorporated (NYSE:MKC - Get Free Report) shares shot up 1.6% during trading on Friday. The company traded as high as $46.68 and last traded at $46.44. 6,225,523 shares were traded during trading, an increase of 55% from the average session volume of 4,012,677 shares. The stock had previously closed at $45.71.

Wall Street Analysts Forecast Growth

MKC has been the subject of a number of recent research reports. Deutsche Bank Aktiengesellschaft lowered their target price on McCormick & Company, Incorporated from $60.00 to $59.00 and set a "buy" rating for the company in a research note on Monday, September 21st. BNP Paribas Exane decreased their price target on McCormick & Company, Incorporated from $75.00 to $65.00 and set an "outperform" rating for the company in a report on Friday, October 2nd. Barclays lowered their price objective on shares of McCormick & Company, Incorporated from $55.00 to $47.00 and set an "equal weight" rating for the company in a research report on Friday, October 2nd. Sanford C. Bernstein reaffirmed an "outperform" rating and issued a $59.00 price objective on shares of McCormick & Company, Incorporated in a research report on Friday, October 2nd. Finally, UBS Group dropped their price objective on shares of McCormick & Company, Incorporated from $52.00 to $48.00 and set a "neutral" rating on the stock in a research note on Friday, October 2nd. Five analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, McCormick & Company, Incorporated presently has a consensus rating of "Hold" and a consensus price target of $55.30.

McCormick & Company, Incorporated Trading Up 1.6%

The stock has a market cap of $12.50 billion, a P/E ratio of 8.40, a price-to-earnings-growth ratio of 1.89 and a beta of 0.65. The firm's 50 day simple moving average is $50.59 and its two-hundred day simple moving average is $50.17. The company has a quick ratio of 0.33, a current ratio of 0.66 and a debt-to-equity ratio of 0.38.

McCormick & Company, Incorporated (NYSE:MKC - Get Free Report) last announced its quarterly earnings data on Thursday, October 1st. The company reported $0.86 earnings per share for the quarter, beating analysts' consensus estimates of $0.76 by $0.10. The business had revenue of $2.02 billion during the quarter, compared to the consensus estimate of $1.98 billion. McCormick & Company, Incorporated had a net margin of 19.39% and a return on equity of 12.01%. The company's revenue for the quarter was up 17.4% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.85 EPS. McCormick & Company, Incorporated has set its FY 2026 guidance at 3.050-3.130 EPS. As a group, equities research analysts predict that McCormick & Company, Incorporated will post 3.09 earnings per share for the current fiscal year.

McCormick & Company, Incorporated Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, October 26th. Stockholders of record on Tuesday, October 13th will be paid a $0.48 dividend. This represents a $1.92 dividend on an annualized basis and a dividend yield of 4.1%. The ex-dividend date of this dividend is Tuesday, October 13th. McCormick & Company, Incorporated's payout ratio is currently 34.72%.

Insider Activity

In other McCormick & Company, Incorporated news, major shareholder Lawrence Kurzius sold 205,538 shares of the business's stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $52.69, for a total transaction of $10,829,797.22. Following the sale, the insider owned 296,992 shares in the company, valued at approximately $15,648,508.48. The trade was a 40.90% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 10.60% of the company's stock.

Institutional Investors Weigh In On McCormick & Company, Incorporated

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Walser Wealth Management Company A Ltd Liability Co lifted its position in McCormick & Company, Incorporated by 15.2% during the 3rd quarter. Walser Wealth Management Company A Ltd Liability Co now owns 6,165 shares of the company's stock worth $286,000 after acquiring an additional 812 shares during the last quarter. V Square Quantitative Management LLC increased its position in McCormick & Company, Incorporated by 7.2% in the 3rd quarter. V Square Quantitative Management LLC now owns 15,671 shares of the company's stock valued at $727,000 after acquiring an additional 1,049 shares in the last quarter. Assenagon Asset Management S.A. raised its position in shares of McCormick & Company, Incorporated by 1,691.7% during the third quarter. Assenagon Asset Management S.A. now owns 150,447 shares of the company's stock worth $6,981,000 after acquiring an additional 142,050 shares during the last quarter. Viking Fund Management LLC grew its holdings in McCormick & Company, Incorporated by 9.9% during the 3rd quarter. Viking Fund Management LLC now owns 368,000 shares of the company's stock worth $17,075,000 after acquiring an additional 33,000 shares during the period. Finally, Sanders Morris Harris LLC acquired a new stake in McCormick & Company, Incorporated in the third quarter worth $204,000. Hedge funds and other institutional investors own 79.74% of the company's stock.

About McCormick & Company, Incorporated

McCormick & Company, Incorporated is a global producer and marketer of spices, herbs, seasonings, condiments, sauces and other flavor products. The company sells branded products to consumers through grocery stores, e-commerce channels and other retail outlets, while also supplying customized flavor solutions, ingredients and seasonings to food manufacturers, restaurants and foodservice operators.

Its portfolio includes the McCormick, French's, Frank's RedHot, Lawry's, OLD BAY, Zatarain's, Grill Mates and Cholula brands, among others.

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