McCormick & Company, Incorporated (NYSE:MKC) Stock Price Down 3.1% - Here's What Happened

Key Points

• McCormick shares fell 3.1% to about $46.01 in mid-day trading, with volume roughly 11% above its average.
• Analysts remain cautious: the stock carries an overall “Hold” rating, with five Buys and eight Holds, while the average price target is $55.30 after several firms lowered their targets.
• The company reported stronger-than-expected quarterly results, with EPS of $0.86 and revenue of $2.02 billion, up 17.4% year over year. McCormick also maintains a quarterly dividend of $0.48, implying a 4.2% annualized yield.

McCormick & Company, Incorporated (NYSE:MKC - Get Free Report) shares traded down 3.1% during mid-day trading on Wednesday. The company traded as low as $45.40 and last traded at $46.0140. Approximately 4,430,446 shares traded hands during mid-day trading, an increase of 11% from the average daily volume of 3,988,568 shares. The stock had previously closed at $47.48.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on MKC shares. Weiss Ratings raised shares of McCormick & Company, Incorporated from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Friday. Deutsche Bank Aktiengesellschaft decreased their price objective on McCormick & Company, Incorporated from $60.00 to $59.00 and set a "buy" rating on the stock in a report on Monday, September 21st. Stifel Nicolaus lowered their price objective on McCormick & Company, Incorporated from $55.00 to $48.00 and set a "hold" rating for the company in a research report on Friday, October 2nd. Barclays cut their target price on McCormick & Company, Incorporated from $55.00 to $47.00 and set an "equal weight" rating for the company in a research note on Friday, October 2nd. Finally, UBS Group cut their target price on McCormick & Company, Incorporated from $52.00 to $48.00 and set a "neutral" rating for the company in a research note on Friday, October 2nd. Five research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $55.30.

McCormick & Company, Incorporated Price Performance

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 stock has a market cap of $12.38 billion, a PE ratio of 8.32, a PEG ratio of 2.03 and a beta of 0.65. The stock's 50-day moving average is $49.62 and its two-hundred day moving average is $53.85.

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

McCormick & Company, Incorporated Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Monday, October 26th. Shareholders of record on Tuesday, October 13th were given a $0.48 dividend. This represents a $1.92 annualized dividend and a yield of 4.2%. The ex-dividend date of this dividend was Tuesday, October 13th. McCormick & Company, Incorporated's payout ratio is currently 34.72%.

Insiders Place Their Bets

In other news, major shareholder Lawrence Kurzius sold 205,538 shares of the stock in a transaction dated Monday, August 10th. The shares were 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 of the company's stock, valued at approximately $15,648,508.48. This represents a 40.90% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 10.60% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On McCormick & Company, Incorporated

A number of hedge funds have recently added to or reduced their stakes in the business. Aristotle Capital Management LLC raised its stake in shares of McCormick & Company, Incorporated by 231.9% in the first quarter. Aristotle Capital Management LLC now owns 12,664,378 shares of the company's stock valued at $638,795,000 after acquiring an additional 8,848,235 shares in the last quarter. XXEC Inc. acquired a new position in McCormick & Company, Incorporated during the 2nd quarter worth $154,566,000. Amundi grew its stake in McCormick & Company, Incorporated by 72.5% during the 1st quarter. Amundi now owns 2,023,544 shares of the company's stock worth $102,068,000 after purchasing an additional 850,343 shares in the last quarter. Deprince Race & Zollo Inc. increased its holdings in McCormick & Company, Incorporated by 330.3% during the 1st quarter. Deprince Race & Zollo Inc. now owns 694,914 shares of the company's stock worth $35,051,000 after purchasing an additional 533,437 shares during the period. Finally, Sei Investments Co. increased its holdings in McCormick & Company, Incorporated by 86.5% during the 1st quarter. Sei Investments Co. now owns 809,720 shares of the company's stock worth $40,842,000 after purchasing an additional 375,471 shares during the period. 79.74% of the stock is currently 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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