McCormick & Company, Incorporated (NYSE:MKC) Stock Falls 1% - Here's Why

Key Points

• McCormick shares fell 1% to about $45.87, with trading volume 18% below the average. The stock remains below its 50-day and 200-day moving averages.
• Analysts broadly maintain a cautious outlook: McCormick has an average “Hold” rating, a $55.30 consensus price target, and several firms recently lowered their targets; Weiss Ratings downgraded the stock to “Sell.”
• The company exceeded quarterly earnings and revenue expectations, reporting $0.86 EPS and $2.02 billion in revenue, while declaring a quarterly dividend of $0.48 per share, equating to a 4.2% yield.

McCormick & Company, Incorporated (NYSE:MKC - Get Free Report)'s stock price dropped 1% during trading on Monday. The company traded as low as $45.68 and last traded at $45.8730. 3,280,870 shares changed hands during trading, a decline of 18% from the average daily volume of 4,009,108 shares. The stock had previously closed at $46.35.

Wall Street Analyst Weigh In

Several analysts have weighed in on MKC shares. TD Cowen reiterated a "hold" rating and issued a $48.00 price objective (down from $55.00) on shares of McCormick & Company, Incorporated in a research note on Friday, October 2nd. BNP Paribas Exane cut their price objective on shares of 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 decreased their target price on shares of McCormick & Company, Incorporated from $55.00 to $47.00 and set an "equal weight" rating on the stock in a research report on Friday, October 2nd. Stifel Nicolaus decreased their target price on shares of McCormick & Company, Incorporated from $55.00 to $48.00 and set a "hold" rating on the stock in a research report on Friday, October 2nd. Finally, Weiss Ratings cut shares of McCormick & Company, Incorporated from a "hold (c-)" rating to a "sell (d+)" rating in a report on Friday, October 9th. Five analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, McCormick & Company, Incorporated presently has an average rating of "Hold" and a consensus price target of $55.30.

McCormick & Company, Incorporated Stock Performance

The firm has a market cap of $12.34 billion, a P/E ratio of 8.30, a P/E/G ratio of 1.96 and a beta of 0.65. The company has a debt-to-equity ratio of 0.38, a quick ratio of 0.33 and a current ratio of 0.66. The company's 50 day moving average is $50.46 and its 200 day moving average is $50.11.

McCormick & Company, Incorporated (NYSE:MKC - Get Free Report) last issued its earnings results 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 firm had revenue of $2.02 billion for the quarter, compared to analyst estimates 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 quarterly revenue was up 17.4% on a year-over-year basis. During the same quarter last year, the business posted $0.85 earnings per share. McCormick & Company, Incorporated has set its FY 2026 guidance at 3.050-3.130 EPS. As a group, equities analysts predict that McCormick & Company, Incorporated will post 3.09 earnings per share for the current fiscal year.

McCormick & Company, Incorporated Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, October 26th. Investors of record on Tuesday, October 13th will be issued a dividend of $0.48 per share. The ex-dividend date of this dividend is Tuesday, October 13th. This represents a $1.92 annualized dividend and a dividend yield of 4.2%. McCormick & Company, Incorporated's dividend payout ratio (DPR) is 34.72%.

Insiders Place Their Bets

In related news, major shareholder Lawrence Kurzius sold 205,538 shares of the business's stock in a transaction on 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 $15,648,508.48. The trade was a 40.90% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. 10.60% of the stock is owned by corporate insiders.

Institutional Trading of McCormick & Company, Incorporated

Hedge funds have recently made changes to their positions in the company. Parvin Asset Management LLC acquired a new position in shares of McCormick & Company, Incorporated in the second quarter valued at approximately $25,000. Union Savings Bank bought a new position in McCormick & Company, Incorporated in the 4th quarter valued at approximately $36,000. Byrne Asset Management LLC bought a new position in McCormick & Company, Incorporated in the 2nd quarter valued at approximately $30,000. Ancora Advisors LLC acquired a new stake in McCormick & Company, Incorporated during the 2nd quarter worth approximately $34,000. Finally, Essential Partners LLC boosted its position in McCormick & Company, Incorporated by 146.5% during the 1st quarter. Essential Partners LLC now owns 742 shares of the company's stock worth $37,000 after buying an additional 441 shares during the period. 79.74% of the stock is owned by institutional investors and hedge funds.

McCormick & Company, Incorporated Company Profile

McCormick & Company, Incorporated is a global manufacturer and marketer of spices, seasonings, condiments, sauces, and other flavor products. The company serves consumers through grocery, e-commerce, and foodservice channels, while also supplying flavor solutions to food manufacturers and other commercial customers.

Its consumer portfolio includes McCormick spices and seasonings, as well as brands such as French's, Frank's RedHot, Lawry's, OLD BAY, and Gourmet Garden. Its products are used in home cooking, restaurants, and packaged foods across a range of cuisines and meal occasions.

Founded by Willoughby M.

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