Zacks Investment Research Upgrades McCormick & Company, Incorporated (NYSE:MKC) to “Buy”

McCormick & Company, Incorporated (NYSE:MKCGet Rating) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Friday, Zacks.com reports. The brokerage currently has a $95.00 price target on the stock. Zacks Investment Research‘s target price would indicate a potential upside of 6.22% from the stock’s previous close.

According to Zacks, “McCormick's shares have outperformed the industry in the past six months. The company capitalizes on healthy and flavorful cooking, increased digital engagement and purpose-minded practices. The robust recovery in the away-from-home demand bodes well. These factors drove first-quarter fiscal 2022 top line, which rose year over year and beat the Zacks Consensus Estimate. The company strategically increased its presence through acquisitions to grow its portfolio. Management is optimistic about its pipeline of innovation for 2022. However, McCormick’s gross profit margin contracted 220 basis points (bps) thanks to increased cost inflation in the quarter. The company is facing broad-based supply chain-related hurdles. That said, McCormick is on track to counter the inflationary pressure through various pricing and cost-saving actions.”

Other equities analysts have also issued research reports about the company. Argus raised McCormick & Company, Incorporated from a “hold” rating to a “buy” rating and set a $112.00 price target on the stock in a research note on Thursday, February 17th. They noted that the move was a valuation call. Deutsche Bank Aktiengesellschaft upped their price target on McCormick & Company, Incorporated from $96.00 to $99.00 in a research note on Wednesday, March 30th. Finally, StockNews.com initiated coverage on McCormick & Company, Incorporated in a report on Thursday, March 31st. They issued a “hold” rating on the stock. Four research analysts have rated the stock with a hold rating and two have given a buy rating to the company. Based on data from MarketBeat, McCormick & Company, Incorporated presently has a consensus rating of “Hold” and an average target price of $99.00.

Shares of McCormick & Company, Incorporated stock opened at $89.44 on Friday. McCormick & Company, Incorporated has a 52 week low of $77.85 and a 52 week high of $107.35. The business’s fifty day simple moving average is $99.36 and its 200-day simple moving average is $95.33. The firm has a market cap of $23.98 billion, a PE ratio of 32.29, a price-to-earnings-growth ratio of 4.74 and a beta of 0.45. The company has a quick ratio of 0.32, a current ratio of 0.73 and a debt-to-equity ratio of 0.86.

McCormick & Company, Incorporated (NYSE:MKCGet Rating) last announced its quarterly earnings results on Tuesday, March 29th. The company reported $0.63 EPS for the quarter, beating the consensus estimate of $0.62 by $0.01. McCormick & Company, Incorporated had a return on equity of 18.00% and a net margin of 11.77%. The business had revenue of $1.52 billion for the quarter, compared to analyst estimates of $1.47 billion. During the same quarter in the prior year, the company posted $0.72 EPS. The company’s quarterly revenue was up 2.8% on a year-over-year basis. As a group, equities analysts expect that McCormick & Company, Incorporated will post 3.17 earnings per share for the current year.

In other McCormick & Company, Incorporated news, CFO Michael R. Smith sold 19,986 shares of the company’s stock in a transaction dated Wednesday, April 20th. The stock was sold at an average price of $104.04, for a total transaction of $2,079,343.44. Following the sale, the chief financial officer now owns 93,025 shares in the company, valued at approximately $9,678,321. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. 15.90% of the stock is owned by corporate insiders.

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Massachusetts Financial Services Co. MA purchased a new position in shares of McCormick & Company, Incorporated in the 4th quarter valued at about $257,713,000. Norges Bank purchased a new position in shares of McCormick & Company, Incorporated in the 4th quarter valued at about $233,048,000. BlackRock Inc. increased its holdings in shares of McCormick & Company, Incorporated by 4.7% in the 4th quarter. BlackRock Inc. now owns 20,370,004 shares of the company’s stock valued at $1,967,945,000 after acquiring an additional 915,428 shares during the last quarter. Fundsmith LLP increased its holdings in shares of McCormick & Company, Incorporated by 5.1% in the 3rd quarter. Fundsmith LLP now owns 18,713,629 shares of the company’s stock valued at $1,516,365,000 after acquiring an additional 908,972 shares during the last quarter. Finally, Vaughan Nelson Investment Management L.P. purchased a new position in shares of McCormick & Company, Incorporated in the 1st quarter valued at about $76,003,000. Institutional investors own 74.86% of the company’s stock.

About McCormick & Company, Incorporated (Get Rating)

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

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