Kesler Norman & Wride LLC has decreased its stake in McCormick & Company, Incorporated (NYSE: MKC) by 1.6% during the first quarter of 2024. According to recent filings with the U.S. Securities and Exchange Commission, the fund now holds 10,900 shares valued at approximately $898,000 after selling 173 shares during the period.
Several other institutional investors have also made adjustments to their positions in McCormick, reflecting a dynamic investment environment. For example, Parr Mcknight Wealth Management Group LLC increased its stake by 17.3%, acquiring an additional 2,425 shares, bringing its total to 16,442 shares valued at $1.35 million. Similarly, Van Cleef Asset Management Inc lifted its holdings by 20.9%, now owning 251,814 shares worth $20.73 million after purchasing an additional 43,494 shares.
Stratos Wealth Partners LTD. and Pacific Point Advisors LLC also expanded their stakes in the company by 5.7% and 8.7%, respectively, reflecting a growing confidence among investors. As a result, institutional investors and hedge funds collectively own approximately 79.74% of McCormick’s stock.
Analysts Adjust Ratings and Price Targets
Equities analysts have recently provided varying assessments of McCormick’s stock performance. Wall Street Zen upgraded the company from a “sell” to a “hold” rating on July 5, 2024. In contrast, Citigroup lowered its target price from $80.00 to $77.00, maintaining a “neutral” rating. Argus also revised its rating from “buy” to “hold” on March 27, 2024. UBS Group initiated coverage with a “neutral” rating and a price objective of $83.00, indicating a mixed outlook among analysts.
Currently, one analyst has issued a sell rating, while six have assigned a hold rating. Three analysts suggest a buy rating, and one has given a strong buy rating. According to data from MarketBeat.com, the consensus rating stands at “Hold” with an average price target of $84.13.
McCormick’s Financial Performance and Future Outlook
As for McCormick’s recent financial performance, shares opened at $72.49 on July 5, 2024. The company recorded a one-year low of $69.98 and a high of $86.24. McCormick has a market capitalization of $19.45 billion and demonstrates a solid price-to-earnings ratio of 25.17.
In its latest earnings report, McCormick announced earnings per share (EPS) of $0.69 for the quarter ending on June 26, 2024, surpassing analysts’ expectations of $0.65. The company reported revenues of $1.66 billion, slightly below the expected $1.67 billion. Compared to the same quarter last year, revenue increased by 1.0%.
Looking ahead, analysts predict that McCormick will post an EPS of $3.07 for the current fiscal year, indicating continued growth potential.
Dividend Announcement and Insider Trading
In addition to its earnings report, McCormick recently declared a quarterly dividend of $0.45 per share, payable on July 21, 2024, to stockholders of record as of July 7, 2024. This equates to an annual dividend of $1.80 and a dividend yield of 2.48%. The company’s payout ratio stands at 62.50%.
In related news, insider Katherine Jenkins sold 7,642 shares of McCormick stock on May 12, 2024, at an average price of $76.38, totaling approximately $583,695.96. This transaction was disclosed in a filing with the SEC, reflecting ongoing activity among company insiders, who own about 23.80% of the company’s shares.
McCormick & Company remains a significant player in the food industry, specializing in the manufacturing and distribution of spices, seasoning mixes, and condiments. The company operates through two main segments: Consumer and Flavor Solutions, catering to both retail and foodservice sectors. As it navigates market fluctuations and investor sentiments, McCormick continues to focus on its core business strategies to sustain growth and profitability.
