MCCORMICK & CO /SH (MKC) – Research Analysts’ Recent Ratings Updates

MCCORMICK & CO /SH (NYSE: MKC) has recently received a number of price target changes and ratings updates:

  • 9/27/2018 – MCCORMICK & CO /SH was given a new $135.00 price target on by analysts at Jefferies Financial Group Inc. They now have a “buy” rating on the stock.
  • 9/25/2018 – MCCORMICK & CO /SH was upgraded by analysts at Zacks Investment Research from a “sell” rating to a “hold” rating. According to Zacks, “McCormick’s shares have outdone the industry in the past year, thanks to its spectacular past record. In fact, the company’s second-quarter fiscal 2018 results marked its sixth and fifth consecutive earnings and sales beat, respectively. Well, the robust performance stems from the company’s dedicated focus on buyouts, product innovations, cost-containment measures and efficient marketing initiatives. Speaking of cost savings, the company’s Comprehensive Continuous Improvement program has been yielding well. Notably, savings from CCI aided expanding margins during the second quarter. On the flip side, we note that McCormick continues to incur high brand marketing and freight costs. These factors had a negative impact on margins in the second quarter. In fact, freight costs are expected to remain a headwind for gross margin in fiscal 2018. Apart from this, stiff competition in the food space remains a threat to the company.”
  • 9/18/2018 – MCCORMICK & CO /SH was upgraded by analysts at Zacks Investment Research from a “sell” rating to a “hold” rating. According to Zacks, “McCormick’s shares have outdone the industry in the past year, thanks to its spectacular past record. In fact, the company’s second-quarter fiscal 2018 results marked its sixth and fifth consecutive earnings and sales beat, respectively. Well, the robust performance stems from the company’s dedicated focus on buyouts, product innovations, cost-containment measures and efficient marketing initiatives. Speaking of cost savings, the company’s Comprehensive Continuous Improvement program has been yielding well. Notably, savings from CCI aided expanding margins during the second quarter. On the flip side, we note that McCormick continues to incur high brand marketing and freight costs. These factors had a negative impact on margins in the second quarter. In fact, freight costs are expected to remain a headwind for gross margin in fiscal 2018. Apart from this, stiff competition in the food space remains a threat to the company.”
  • 9/12/2018 – MCCORMICK & CO /SH was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “Although McCormick has outdone the industry in the past month, the trend may reverse in the near term. We note that McCormick continues to incur high brand marketing and freight costs, which hurt margins in the second quarter. The company continues to undertake increased brand marketing to further drive sales. Also, freight costs are expected to remain a headwind for gross margin in fiscal 2018. Apart from this, stiff competition in the food space remains a threat to the company, which appears stretched when compared with the industry. This indicates limited upside potential for the stock. Nonetheless, McCormick’s cost woes are likely to be cushioned by its CCI program, which is aimed at reducing costs and enhancing productivity. Also, focus on buyouts, innovations helped the company retain its stellar record in second-quarter fiscal 2018.  Estimates have been stable lately ahead of third-quarter earnings release.”

Shares of NYSE:MKC traded down $1.60 during mid-day trading on Thursday, hitting $128.29. 1,759,517 shares of the company traded hands, compared to its average volume of 963,503. The stock has a market cap of $16.97 billion, a price-to-earnings ratio of 30.12, a PEG ratio of 2.89 and a beta of 0.55. The company has a quick ratio of 0.42, a current ratio of 0.85 and a debt-to-equity ratio of 1.47. MCCORMICK & CO /SH NV has a 12-month low of $93.70 and a 12-month high of $132.83.

MCCORMICK & CO /SH (NYSE:MKC) last announced its earnings results on Thursday, September 27th. The company reported $1.28 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $1.27 by $0.01. The company had revenue of $1.35 billion for the quarter, compared to analysts’ expectations of $1.36 billion. MCCORMICK & CO /SH had a return on equity of 21.98% and a net margin of 15.83%. MCCORMICK & CO /SH’s quarterly revenue was up 13.5% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.12 earnings per share. equities research analysts expect that MCCORMICK & CO /SH NV will post 4.96 earnings per share for the current year.

The business also recently announced a quarterly dividend, which will be paid on Tuesday, October 23rd. Investors of record on Tuesday, October 9th will be given a dividend of $0.52 per share. The ex-dividend date is Friday, October 5th. This represents a $2.08 annualized dividend and a dividend yield of 1.62%. MCCORMICK & CO /SH’s payout ratio is 48.83%.

In related news, VP Michael R. Smith sold 8,000 shares of MCCORMICK & CO /SH stock in a transaction that occurred on Monday, July 9th. The stock was sold at an average price of $119.90, for a total transaction of $959,200.00. Following the transaction, the vice president now owns 22,759 shares of the company’s stock, valued at $2,728,804.10. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Alan D. Wilson sold 100,000 shares of MCCORMICK & CO /SH stock in a transaction on Thursday, August 16th. The stock was sold at an average price of $125.30, for a total value of $12,530,000.00. Following the sale, the director now owns 212,894 shares in the company, valued at $26,675,618.20. The disclosure for this sale can be found here. 19.20% of the stock is owned by insiders.

A number of institutional investors have recently modified their holdings of MKC. Itau Unibanco Holding S.A. bought a new stake in MCCORMICK & CO /SH during the second quarter worth $111,000. Bay Colony Advisory Group Inc d b a Bay Colony Advisors bought a new stake in MCCORMICK & CO /SH during the second quarter worth $125,000. IMS Capital Management bought a new stake in MCCORMICK & CO /SH during the second quarter worth $128,000. Fort L.P. bought a new stake in MCCORMICK & CO /SH during the second quarter worth $134,000. Finally, Squar Milner Financial Services LLC bought a new stake in MCCORMICK & CO /SH during the second quarter worth $135,000. Institutional investors and hedge funds own 82.58% of the company’s stock.

McCormick & Company, Incorporated manufactures, markets, and distributes spices, seasoning mixes, condiments, and other flavorful products to the food industry. The company operates through two segments, Consumer and Industrial. The Consumer segment offers spices, herbs, and seasonings, as well as desserts.

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