J. M. Smucker (NYSE:SJM) Shares Gap Down After Earnings Miss

The J. M. Smucker Company (NYSE:SJM) shares gapped down prior to trading on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $110.58, but opened at $100.25. J. M. Smucker shares last traded at $105.90, with a volume of 2,190,654 shares changing hands.

The company reported $1.90 earnings per share for the quarter, missing analysts’ consensus estimates of $1.95 by ($0.05). The firm had revenue of $2.11 billion for the quarter, compared to analyst estimates of $2.09 billion. J. M. Smucker had a positive return on equity of 15.20% and a negative net margin of 14.10%.The firm’s revenue was down .6% on a year-over-year basis. During the same period in the prior year, the firm earned $2.44 EPS. J. M. Smucker has set its FY 2026 guidance at 8.500-9.500 EPS.

J. M. Smucker Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 2nd. Shareholders of record on Friday, August 15th will be given a dividend of $1.10 per share. The ex-dividend date of this dividend is Friday, August 15th. This represents a $4.40 dividend on an annualized basis and a yield of 4.2%. This is a positive change from J. M. Smucker’s previous quarterly dividend of $1.08. J. M. Smucker’s dividend payout ratio (DPR) is presently -38.06%.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on the stock. UBS Group boosted their target price on shares of J. M. Smucker from $115.00 to $130.00 and gave the stock a “buy” rating in a research report on Wednesday, August 20th. Morgan Stanley upped their target price on shares of J. M. Smucker from $115.00 to $118.00 and gave the company an “overweight” rating in a research note on Monday, August 18th. Barclays cut their target price on shares of J. M. Smucker from $119.00 to $105.00 and set an “equal weight” rating for the company in a research note on Wednesday, June 11th. Bank of America upped their target price on shares of J. M. Smucker from $105.00 to $120.00 and gave the company a “neutral” rating in a research note on Tuesday, August 19th. Finally, Citigroup cut their price objective on shares of J. M. Smucker from $128.00 to $118.00 and set a “buy” rating for the company in a research report on Wednesday, June 11th. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $119.69.

Insider Activity at J. M. Smucker

In related news, Director Tarang Amin acquired 1,050 shares of the business’s stock in a transaction dated Thursday, June 12th. The stock was acquired at an average price of $96.09 per share, with a total value of $100,894.50. Following the completion of the transaction, the director owned 3,825 shares of the company’s stock, valued at approximately $367,544.25. This represents a 37.84% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is accessible through the SEC website. Corporate insiders own 2.24% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Stance Capital LLC acquired a new position in J. M. Smucker in the second quarter worth about $739,000. Advisory Services Network LLC acquired a new position in J. M. Smucker in the second quarter worth about $1,038,000. Anchor Investment Management LLC raised its position in J. M. Smucker by 4.7% in the second quarter. Anchor Investment Management LLC now owns 17,831 shares of the company’s stock worth $1,751,000 after purchasing an additional 794 shares in the last quarter. Hudson Bay Capital Management LP raised its position in J. M. Smucker by 306.7% in the second quarter. Hudson Bay Capital Management LP now owns 85,886 shares of the company’s stock worth $8,434,000 after purchasing an additional 64,766 shares in the last quarter. Finally, Nomura Holdings Inc. raised its position in J. M. Smucker by 176.7% in the second quarter. Nomura Holdings Inc. now owns 9,263 shares of the company’s stock worth $910,000 after purchasing an additional 5,915 shares in the last quarter. Institutional investors and hedge funds own 81.66% of the company’s stock.

J. M. Smucker Price Performance

The company has a quick ratio of 0.35, a current ratio of 0.81 and a debt-to-equity ratio of 1.16. The stock has a market cap of $11.27 billion, a price-to-earnings ratio of -9.16, a price-to-earnings-growth ratio of 8.23 and a beta of 0.31. The company’s 50-day moving average is $106.51 and its 200-day moving average is $109.51.

About J. M. Smucker

The J. M. Smucker Company manufactures and markets branded food and beverage products worldwide. It operates in three segments: U.S. Retail Pet Foods, U.S. Retail Coffee, and U.S. Retail Consumer Foods. The company offers mainstream roast, ground, single serve, and premium coffee; peanut butter and specialty spreads; fruit spreads, toppings, and syrups; jelly products; nut mix products; shortening and oils; frozen sandwiches and snacks; pet food and pet snacks; and foodservice hot beverage, foodservice portion control, and flour products, as well as dog and cat food, frozen handheld products, juices and beverages, and baking mixes and ingredients.