J. M. Smucker (NYSE:SJM) Shares Gap Up on Strong Earnings

The J. M. Smucker Company (NYSE:SJM)’s stock price gapped up prior to trading on Tuesday following a stronger than expected earnings report. The stock had previously closed at $113.62, but opened at $120.00. J. M. Smucker shares last traded at $122.13, with a volume of 716,873 shares trading hands.

The company reported $2.76 earnings per share for the quarter, topping analysts’ consensus estimates of $2.49 by $0.27. J. M. Smucker had a return on equity of 14.22% and a net margin of 8.77%. The business had revenue of $2.27 billion for the quarter, compared to the consensus estimate of $2.27 billion. During the same period last year, the business earned $2.59 earnings per share. The firm’s revenue for the quarter was up 17.2% compared to the same quarter last year.

J. M. Smucker Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, December 2nd. Stockholders of record on Friday, November 15th will be given a dividend of $1.08 per share. This represents a $4.32 dividend on an annualized basis and a dividend yield of 3.60%. The ex-dividend date is Friday, November 15th. J. M. Smucker’s dividend payout ratio is presently 61.10%.

Analyst Ratings Changes

A number of equities research analysts have weighed in on the stock. Citigroup decreased their price target on shares of J. M. Smucker from $138.00 to $136.00 and set a “buy” rating on the stock in a research note on Thursday, August 29th. Stifel Nicolaus lowered shares of J. M. Smucker from a “buy” rating to a “hold” rating and decreased their target price for the company from $135.00 to $125.00 in a research report on Friday, October 25th. DA Davidson reissued a “neutral” rating and issued a $121.00 price target on shares of J. M. Smucker in a research report on Thursday, August 29th. Barclays cut their price target on shares of J. M. Smucker from $123.00 to $121.00 and set an “equal weight” rating for the company in a research note on Friday, August 30th. Finally, BNP Paribas upgraded J. M. Smucker to a “strong sell” rating in a research note on Thursday, August 29th. One equities research analyst has rated the stock with a sell rating, eight have assigned a hold rating and four have issued a buy rating to the stock. According to MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $127.09.

Hedge Funds Weigh In On J. M. Smucker

Several institutional investors have recently bought and sold shares of the business. Tidal Investments LLC increased its stake in shares of J. M. Smucker by 1.3% in the third quarter. Tidal Investments LLC now owns 15,038 shares of the company’s stock valued at $1,821,000 after buying an additional 190 shares in the last quarter. Wilmington Savings Fund Society FSB acquired a new stake in J. M. Smucker in the 3rd quarter valued at about $682,000. Soltis Investment Advisors LLC bought a new position in shares of J. M. Smucker in the third quarter worth about $202,000. TD Private Client Wealth LLC raised its stake in shares of J. M. Smucker by 9.7% in the third quarter. TD Private Client Wealth LLC now owns 3,768 shares of the company’s stock worth $456,000 after acquiring an additional 334 shares during the last quarter. Finally, Coldstream Capital Management Inc. lifted its position in shares of J. M. Smucker by 13.4% during the third quarter. Coldstream Capital Management Inc. now owns 19,503 shares of the company’s stock worth $2,357,000 after purchasing an additional 2,303 shares in the last quarter. Institutional investors own 81.66% of the company’s stock.

J. M. Smucker Price Performance

The company has a debt-to-equity ratio of 0.87, a current ratio of 0.55 and a quick ratio of 0.25. The firm has a market capitalization of $12.79 billion, a P/E ratio of 16.99, a PEG ratio of 3.18 and a beta of 0.25. The company’s 50 day moving average price is $116.42 and its 200 day moving average price is $115.55.

About J. M. Smucker

The J. M. Smucker Company manufactures and markets branded food and beverage products worldwide. It operates in three segments: U.S. Retail Pet Foods, U.S. Retail Coffee, and U.S. Retail Consumer Foods. The company offers mainstream roast, ground, single serve, and premium coffee; peanut butter and specialty spreads; fruit spreads, toppings, and syrups; jelly products; nut mix products; shortening and oils; frozen sandwiches and snacks; pet food and pet snacks; and foodservice hot beverage, foodservice portion control, and flour products, as well as dog and cat food, frozen handheld products, juices and beverages, and baking mixes and ingredients.