J M Smucker (SJM) Downgraded to “Hold” at Zacks Investment Research

J M Smucker (NYSE:SJM) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Monday, Zacks.com reports.

According to Zacks, “Smucker’s shares have outperformed the industry in the past three months. The company has been gaining from a strong brand position. Markedly, acquisitions have played a crucial role in strengthening the company’s brand portfolio and boosting sales. In fact, during the third quarter of fiscal 2019, net sales increased 6% year over year, mainly driven by the Ainsworth buyout and gains from the company’s growth brands. Further the company is on track with innovation, especially in the pet foods category. Apart from these, the company also remains focused on cost reduction and boosting e-commerce. On the flip side, Smucker’s performance in the third quarter was weighed down by negative impacts from the divestiture of the U.S. baking business. Moreover, lower net price realization dented performance in the U.S. Retail Coffee as well as the International and Away from Home segments.  Persistence of such headwinds are worries.”

SJM has been the subject of a number of other research reports. Jefferies Financial Group set a $125.00 target price on J M Smucker and gave the stock a “buy” rating in a report on Tuesday, February 26th. Guggenheim initiated coverage on J M Smucker in a report on Tuesday, January 22nd. They set a “sell” rating and a $85.00 target price for the company. Argus initiated coverage on J M Smucker in a research report on Monday, April 1st. They set a “hold” rating for the company. Morgan Stanley lifted their price target on J M Smucker from $98.00 to $104.00 and gave the company an “underweight” rating in a research report on Wednesday, February 27th. Finally, Citigroup lifted their price target on J M Smucker from $122.00 to $130.00 and gave the company a “buy” rating in a research report on Wednesday, February 27th. Two research analysts have rated the stock with a sell rating, nine have assigned a hold rating and three have issued a buy rating to the company’s stock. The stock currently has an average rating of “Hold” and an average price target of $117.18.

J M Smucker stock opened at $126.69 on Monday. The company has a debt-to-equity ratio of 0.66, a current ratio of 0.95 and a quick ratio of 0.44. J M Smucker has a 52 week low of $91.32 and a 52 week high of $128.43. The stock has a market cap of $14.43 billion, a P/E ratio of 15.92, a PEG ratio of 2.93 and a beta of 0.58.

J M Smucker (NYSE:SJM) last released its earnings results on Tuesday, February 26th. The company reported $2.26 EPS for the quarter, topping the Zacks’ consensus estimate of $2.03 by $0.23. J M Smucker had a return on equity of 11.61% and a net margin of 8.15%. The firm had revenue of $2.01 billion during the quarter, compared to the consensus estimate of $1.99 billion. During the same quarter in the previous year, the company posted $2.50 earnings per share. The company’s revenue was up 5.7% compared to the same quarter last year. On average, equities analysts anticipate that J M Smucker will post 8.15 EPS for the current fiscal year.

In other news, SVP Jeannette L. Knudsen sold 1,932 shares of the business’s stock in a transaction that occurred on Thursday, March 14th. The stock was sold at an average price of $102.86, for a total value of $198,725.52. Following the completion of the sale, the senior vice president now directly owns 24,292 shares in the company, valued at $2,498,675.12. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 3.92% of the stock is owned by insiders.

Institutional investors have recently bought and sold shares of the company. GYL Financial Synergies LLC acquired a new stake in shares of J M Smucker in the first quarter worth approximately $626,000. Allstate Corp boosted its stake in shares of J M Smucker by 48.8% in the first quarter. Allstate Corp now owns 3,304 shares of the company’s stock worth $385,000 after acquiring an additional 1,084 shares during the last quarter. Advisory Services Network LLC boosted its stake in shares of J M Smucker by 21.4% in the first quarter. Advisory Services Network LLC now owns 742 shares of the company’s stock worth $87,000 after acquiring an additional 131 shares during the last quarter. Nordea Investment Management AB boosted its stake in shares of J M Smucker by 272.2% in the first quarter. Nordea Investment Management AB now owns 94,882 shares of the company’s stock worth $11,053,000 after acquiring an additional 69,392 shares during the last quarter. Finally, First Dallas Securities Inc. acquired a new stake in shares of J M Smucker in the first quarter worth approximately $357,000. Institutional investors and hedge funds own 79.50% of the company’s stock.

J M Smucker Company Profile

The J. M. Smucker Co engages in the manufacture and marketing of branded food and beverage products. It operates through the following segments: U.S. Retail Coffee, U.S. Retail Consumer Foods, U.S. Retail Pet Foods, and International and Away From Home. The U. S. Retail Coffee segment includes the domestic sales of Folgers, Dunkin Donuts, and Cafe Bustelo branded coffee.

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Analyst Recommendations for J M Smucker (NYSE:SJM)

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