Marzetti (NASDAQ:MZTI) Shares Gap Down on Disappointing Earnings

The Marzetti Company (NASDAQ:MZTI) gapped down prior to trading on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $110.93, but opened at $97.95. Marzetti shares last traded at $108.9050, with a volume of 65,415 shares changing hands.

The company reported $1.14 EPS for the quarter, missing the consensus estimate of $1.37 by ($0.23). Marzetti had a return on equity of 18.22% and a net margin of 9.93%. The business had revenue of $481.52 million for the quarter. During the same period in the previous year, the firm posted $1.74 earnings per share. Marzetti’s quarterly revenue was down 2.4% compared to the same quarter last year.

Marzetti Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 8th were paid a dividend of $1.00 per share. The ex-dividend date was Tuesday, September 8th. This represents a $4.00 dividend on an annualized basis and a yield of 3.6%. Marzetti’s payout ratio is 57.39%.

Analysts Set New Price Targets

A number of brokerages have commented on MZTI. DA Davidson decreased their price objective on Marzetti from $168.00 to $130.00 and set a “neutral” rating for the company in a report on Wednesday, August 26th. Stephens dropped their target price on Marzetti from $140.00 to $135.00 and set an “equal weight” rating on the stock in a report on Wednesday, October 28th. Finally, Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Marzetti in a research report on Monday, August 17th. Two research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Reduce” and an average target price of $132.50.

Insiders Place Their Bets

In related news, CEO Luis Viso sold 997 shares of the stock in a transaction dated Thursday, September 10th. The shares were sold at an average price of $100.81, for a total transaction of $100,507.57. Following the completion of the transaction, the chief executive officer owned 1,047 shares in the company, valued at approximately $105,548.07. This represents a 48.78% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 29.30% of the company’s stock.

Institutional Trading of Marzetti

A number of large investors have recently bought and sold shares of the company. State of Michigan Retirement System raised its position in shares of Marzetti by 2.1% in the first quarter. State of Michigan Retirement System now owns 4,932 shares of the company’s stock valued at $682,000 after purchasing an additional 100 shares during the period. Oregon Public Employees Retirement Fund increased its holdings in Marzetti by 2.5% during the 1st quarter. Oregon Public Employees Retirement Fund now owns 4,162 shares of the company’s stock valued at $576,000 after purchasing an additional 100 shares during the period. NewEdge Advisors LLC increased its stake in shares of Marzetti by 237.5% during the second quarter. NewEdge Advisors LLC now owns 216 shares of the company’s stock valued at $25,000 after buying an additional 152 shares during the period. Park National Corp OH raised its holdings in Marzetti by 1.5% in the 3rd quarter. Park National Corp OH now owns 11,160 shares of the company’s stock worth $1,107,000 after purchasing an additional 160 shares in the last quarter. Finally, Rockefeller Capital Management L.P. purchased a new stake in Marzetti in the fourth quarter worth approximately $35,000. 66.44% of the stock is owned by hedge funds and other institutional investors.

Marzetti Stock Performance

The business’s 50 day simple moving average is $105.09 and its two-hundred day simple moving average is $124.90. The firm has a market capitalization of $3.02 billion, a PE ratio of 15.84 and a beta of 0.35. The company has a current ratio of 1.56, a quick ratio of 0.67 and a debt-to-equity ratio of 0.18.

About Marzetti

T. Marzetti Company is a food manufacturer and marketer based in Columbus, Ohio. The company develops, produces and distributes specialty food products for retail and foodservice customers, with a portfolio focused on dressings, dips, sauces, frozen breads and related prepared foods.

Its brand portfolio includes Marzetti, Simply Dressed, New York Bakery, Sister Schubert’s, Flatout, Cardini’s and Girard’s, among others. These products are sold through grocery retailers and other retail channels, while the company also supplies restaurants, institutional foodservice operators and other commercial customers.

The company traces its roots to 1896, when Teresa Marzetti opened a restaurant in Columbus, Ohio.