J. M. Smucker (NYSE:SJM) Hits New 52-Week Low - Here's Why

The J. M. Smucker Company (NYSE:SJM) reached a new 52-week low on Wednesday, trading as low as $100.72 before closing at $100.77. The trading volume for the day was recorded at 231,617 shares, with the previous closing price being $101.91.

Analysts Set New Price Targets

A number of financial analysts have recently updated their ratings and price targets for J. M. Smucker shares. Stifel Nicolaus changed their rating from "buy" to "hold" and adjusted their price target from $135.00 to $125.00 in a note dated October 25. On December 4, Barclays revised their target price from $126.00 to $123.00, maintaining an "equal weight" rating. Wells Fargo & Company, however, raised their price target from $130.00 to $135.00 and rated the stock as "overweight" on November 27. TD Cowen also downgraded Smucker's stock from "buy" to "hold," reducing their price objective from $130.00 to $121.00 on January 8. Additionally, StockNews.com upgraded the stock from a "sell" rating to "hold" on September 30. Overall, one analyst has given a sell rating, seven have provided a hold rating, and three rated it as a buy. The consensus rating stands at "Hold" with a target price averaging $127.33, according to MarketBeat.com.

J. M. Smucker Trading Down 0.4%

The company operates with a market capitalization of $10.87 billion, a price-to-earnings (P/E) ratio of 20.68, a P/E to growth (P/E/G) ratio of 3.08, and a beta value of 0.28. The company’s fifty-day moving average is at $111.57, and its 200-day moving average is at $115.44. Furthermore, J. M. Smucker has a debt-to-equity ratio of 0.89, a quick ratio of 0.27, and a current ratio of 0.58.

Earnings Results

J. M. Smucker recently reported its quarterly earnings on November 26. The company recorded an earnings per share (EPS) of $2.76, which surpassed the consensus estimate of $2.51 by $0.25. Their net profit margin stood at 5.96%, and the return on equity was 14.35%. The revenue they generated during the quarter was $2.27 billion, matching the market expectations. This figure represented a 17.2% increase compared to the same period last year when the EPS was $2.59. Looking ahead, research analysts expect the company to post an EPS of 9.89 for the ongoing fiscal year.

Dividend Announcements

In terms of dividends, J. M. Smucker declared a quarterly dividend recently, which was paid on December 2. Shareholders who were on record as of November 15 received a dividend of $1.08 per share, corresponding to an annual dividend of $4.32 and a yield of 4.23%. Currently, the dividend payout ratio of the company is at 87.45%.

Insider Transactions

In insider trading news, Chief Financial Officer Tucker H. Marshall sold 994 shares of the company’s stock on December 17, at an average price of $113.00. The total value of this transaction was approximately $112,322. After this sale, the CFO retains 18,734 shares of the company, valued around $2,116,942, indicating a 5.04% decrease in his holding. This sale has been documented in legal filings with the SEC.

Hedge Fund Activity

Several institutional investors have been active with J. M. Smucker shares recently. For example, Acadian Asset Management LLC increased its holdings by 342.8% in the second quarter, resulting in ownership of 4,468 shares valued at $485,000. Quest Partners LLC saw a remarkable increase in stake by 2,347.1% during the same quarter, owning 416 shares valued at $45,000 afterward. Other firms, like Choreo LLC, also acquired new positions in J. M. Smucker during this period, along with Envestnet Asset Management Inc. raising their ownership by 5.0%. Recently, Dimensional Fund Advisors LP raised its stake by 8.2%, owning nearly 1.78 million shares worth approximately $194.43 million. Currently, institutional shareholders own 81.66% of the company’s stock.

Company Overview

The J. M. Smucker Company specializes in producing and marketing various branded food and beverage products on a global scale. Its operations are segmented into three main categories: U.S. Retail Pet Foods, U.S. Retail Coffee, and U.S. Retail Consumer Foods. The company offers a broad range of products including premium coffee brands, peanut butter, fruit spreads, jams, syrups, jelly, pet food, and other food products.

Investment Considerations

Investors are encouraged to consider the recent trends and ratings concerning J. M. Smucker. While it holds a "Hold" rating, analysts suggest looking into other stocks that may present better investment opportunities.

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