McCormick & Company, Incorporated (NYSE:MKC) Shares Gap Down After Earnings Miss

McCormick & Company, Incorporated (NYSE:MKC)’s stock price gapped down prior to trading on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $80.34, but opened at $76.20. McCormick & Company, Incorporated shares last traded at $79.35, with a volume of 1,469,996 shares trading hands.

The company reported $0.60 earnings per share for the quarter, missing analysts’ consensus estimates of $0.64 by ($0.04). McCormick & Company, Incorporated had a net margin of 11.73% and a return on equity of 14.89%. The firm had revenue of $1.61 billion during the quarter, compared to the consensus estimate of $1.61 billion. During the same quarter in the prior year, the business posted $0.63 earnings per share. The firm’s quarterly revenue was up .2% on a year-over-year basis.

McCormick & Company, Incorporated Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, April 21st. Shareholders of record on Monday, April 7th will be given a dividend of $0.45 per share. This represents a $1.80 dividend on an annualized basis and a yield of 2.23%. McCormick & Company, Incorporated’s dividend payout ratio is presently 61.43%.

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on MKC shares. Jefferies Financial Group upgraded shares of McCormick & Company, Incorporated from a “hold” rating to a “buy” rating and boosted their target price for the company from $85.00 to $91.00 in a research report on Monday, December 9th. TD Cowen upgraded McCormick & Company, Incorporated from a “hold” rating to a “buy” rating and upped their target price for the stock from $86.00 to $90.00 in a research note on Wednesday, January 8th. JPMorgan Chase & Co. lifted their price target on McCormick & Company, Incorporated from $66.00 to $69.00 and gave the company an “underweight” rating in a research report on Friday, January 24th. Finally, Barclays decreased their price target on McCormick & Company, Incorporated from $85.00 to $82.00 and set an “equal weight” rating for the company in a report on Monday, January 27th. One research analyst has rated the stock with a sell rating, three have assigned a hold rating, four have given a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat.com, McCormick & Company, Incorporated currently has a consensus rating of “Moderate Buy” and a consensus price target of $83.75.

Insiders Place Their Bets

In related news, Director Margaret M. V. Preston sold 28,092 shares of McCormick & Company, Incorporated stock in a transaction dated Thursday, February 13th. The stock was sold at an average price of $77.03, for a total value of $2,163,926.76. Following the sale, the director now directly owns 6,177 shares in the company, valued at approximately $475,814.31. The trade was a 81.97 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. 23.80% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On McCormick & Company, Incorporated

Several hedge funds and other institutional investors have recently made changes to their positions in MKC. Curio Wealth LLC acquired a new position in McCormick & Company, Incorporated in the 4th quarter valued at $30,000. Albion Financial Group UT purchased a new stake in shares of McCormick & Company, Incorporated during the fourth quarter worth $33,000. Twin Tree Management LP acquired a new stake in shares of McCormick & Company, Incorporated in the fourth quarter valued at about $33,000. Ameriflex Group Inc. purchased a new position in shares of McCormick & Company, Incorporated in the fourth quarter worth about $33,000. Finally, Lee Danner & Bass Inc. purchased a new position in shares of McCormick & Company, Incorporated in the fourth quarter worth about $37,000. Hedge funds and other institutional investors own 79.74% of the company’s stock.

McCormick & Company, Incorporated Stock Up 0.8 %

The stock has a market capitalization of $21.68 billion, a price-to-earnings ratio of 27.59, a price-to-earnings-growth ratio of 3.76 and a beta of 0.71. The company has a quick ratio of 0.31, a current ratio of 0.74 and a debt-to-equity ratio of 0.68. The business’s 50-day moving average is $78.93 and its two-hundred day moving average is $78.86.

About McCormick & Company, Incorporated

McCormick & Co, Inc engages in the manufacturing, marketing, and distribution of spices, seasoning mixes, condiments, and other flavorful products to retail outlets, food manufacturers, and foodservice businesses. It operates through the Consumer and Flavor Solutions segments. The Consumer segment sells spices, seasonings, condiments, and sauces.