StockNews.com Downgrades J. M. Smucker to Sell

Research analysts at StockNews.com have recently lowered their rating for J. M. Smucker (NYSE:SJM) from "hold" to "sell" in a report released on Thursday. This downgrade reflects growing concerns regarding the stock's performance.

Recent Analyst Activity

Other analysts have also shared their views on J. M. Smucker. For instance, Wells Fargo & Company increased their price target from $130.00 to $135.00 and gave the stock an "overweight" rating in a report on November 27th. Conversely, TD Cowen downgraded the stock from "buy" to "hold," lowering their target price from $130.00 to $121.00 on January 8th. Meanwhile, DA Davidson reduced its price target from $122.00 to $120.00 while assigning a "neutral" rating. Stifel Nicolaus also cut its target from $125.00 to $120.00, maintaining a "hold" rating. Barclays adjusted their target price from $123.00 to $119.00, tagging the stock with an "equal weight" rating. Overall, there are two analysts with a "sell" rating, five who advocate for a "hold," and three who suggest a "buy." The consensus rating for J. M. Smucker is currently "Hold" with an average target price set at $126.00 according to MarketBeat.

Stock Performance

On Thursday, J. M. Smucker's shares dropped by 0.8%, trading down $0.89 to reach $109.27. The trading volume for the day was 1,185,256 shares, surpassing the average volume of 1,121,844. The company has a debt-to-equity ratio of 0.89, a current ratio of 0.58, and a quick ratio of 0.27. Its 50-day moving average stands at $106.82 while the 200-day moving average is $112.50. The company's market capitalization is approximately $11.63 billion, with a P/E ratio of 22.12 and a price-to-earnings-growth ratio of 3.91. Over the past twelve months, J. M. Smucker has seen a low of $98.77 and a high of $127.15.

Quarterly Earnings Report

Recently, J. M. Smucker reported its quarterly earnings on February 27th, showcasing $2.61 earnings per share, which surpassed analysts' expectations of $2.37 by $0.24. The company reported a return on equity of 14.35% alongside a net margin of 5.96%. Revenue for the quarter reached $2.19 billion, slightly below analysts' predictions of $2.23 billion. Analysts are projecting that J. M. Smucker will achieve earnings per share of 9.88 for the current fiscal year.

Insider Transactions

In related news, CFO Tucker H. Marshall sold 5,028 shares of J. M. Smucker on March 13th at an average price of $113.36, totaling $569,974.08. Following this sale, Marshall retains ownership of 13,263 shares valued at about $1.5 million, which represents a decrease of approximately 27.49% in their position. This transaction has been disclosed through a legal filing with the Securities & Exchange Commission.

Institutional Investor Activity

Recent changes in ownership have occurred among large investors. Vanguard Group increased its stake in J. M. Smucker by 1.0% in the fourth quarter, now holding 13,344,933 shares valued at around $1.47 billion. State Street Corp also raised its position by 12.0% during the third quarter, owning 7,111,023 shares worth approximately $861 million. Similarly, FMR LLC increased their holding by 11.3%, owning 3,734,305 shares valued at $411 million after acquiring additional shares. Geode Capital and Invesco have also boosted their positions in J. M. Smucker. Currently, 81.66% of the stock is owned by institutional investors and hedge funds.

About J. M. Smucker

The J. M. Smucker Company is known for producing and marketing branded food and beverage products globally. The company operates in various segments, including U.S. Retail Pet Foods, U.S. Retail Coffee, and U.S. Retail Consumer Foods. Their product offerings include a range of coffee types, peanut butter, fruit spreads, frozen snacks, and pet foods.

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