In a recent transaction, Mark T. Smucker, the Chair of the Board, President, and CEO of J M Smucker Co (NYSE:SJM), sold 10,000 shares of the company's common stock. The total value of the shares sold amounted to over $1.1 million, with the weighted average selling price being $110.16 per share. This price range for the shares sold spanned from $110.14 to $110.29.
The transaction, which took place on June 21, 2024, was disclosed in a regulatory filing with the Securities and Exchange Commission (SEC). Following the sale, Smucker's direct ownership in the company stands at 78,757 shares. Additionally, the SEC filing noted that on June 20, 2024, Smucker transferred 31,014 shares from his grantor retained annuity trust (2023) to his direct ownership.
The disclosure also highlighted various indirect holdings, including 7,006 shares owned through a 401(k), 40,000 shares by a GRAT (2024), and 18,986 shares by a GRAT (2023). Furthermore, 40,667 shares are held by a trust, while smaller amounts are held indirectly by Smucker's wife and trusts for the benefit of his son and daughter, over which he disclaims beneficial ownership.
Investors often monitor insider transactions such as these for insights into executive sentiment regarding their company's stock. The sale by Smucker represents a significant transaction by a key executive at J M Smucker Co, a leading manufacturer in the food industry, known for its wide range of products including fruit spreads, peanut butter, and coffee.
The company has not made any official statements regarding the purpose or implications of the transaction. Shareholders and potential investors in J M Smucker Co continue to observe insider activity as part of their investment considerations.
In other recent news, J.M. Smucker Co. has experienced multiple adjustments in stock price targets from various firms, while maintaining a generally positive outlook. Argus, TD Cowen, and DA Davidson all revised their price targets for J.M. Smucker, citing reasons such as market share growth, strategic moves, and financial projections. Despite these revisions, all firms retained their positive ratings on the stock.
J.M. Smucker's recent financial performance showcases mixed results. The company reported a slight miss in its fourth-quarter revenue for fiscal year 2024, falling short of consensus estimates by 1.7% at $2,205.7 million. However, it exceeded expectations in key financial metrics like adjusted gross margin, EBIT, and EPS. For the full fiscal year 2024, J.M. Smucker reported an 8% increase in net sales and an adjusted EPS of $9.94, largely due to the acquisition of Hostess Brands (NASDAQ:TWNK).
Looking ahead, J.M. Smucker anticipates a net sales growth of 2% and an adjusted EPS of $10.00 for Fiscal 2025. The company is also planning to prioritize debt reduction while expecting adjusted EPS growth in Fiscal 2026. However, potential challenges such as higher commodity costs and expenses for a new Uncrustables facility could impact margins. Despite these challenges, J.M. Smucker maintains a positive outlook, emphasizing the strategic importance of popular brands and the integration of Hostess Brands into its portfolio.
InvestingPro Insights
As we delve into the recent insider transaction at J M Smucker Co (NYSE:SJM), it's essential to consider the broader financial context in which this sale occurred. InvestingPro data reveals a mixed financial landscape for the company. With a market capitalization of $11.92 billion and a P/E ratio standing at 15.63, investors are valuing the company at a level that suggests moderate expectations for future earnings growth.
One of the notable InvestingPro Tips is that J M Smucker Co has been consistent in rewarding shareholders, having increased its dividend for 14 consecutive years. This streak is a testament to the company's commitment to returning value to its investors and could be a comforting factor for shareholders amidst the insider selling activity. Furthermore, while the company's revenue has seen a decline of 4.11% over the last twelve months as of Q4 2024, its dividend yield is relatively high at 3.9%, which may appeal to income-focused investors.
Despite the recent price dip, with the company trading near its 52-week low and experiencing a one-year price total return of -25.13%, the company's management has shown confidence through aggressive share buybacks. This could indicate a belief among the company's leadership that the stock is undervalued or that it represents a good investment opportunity at current prices.
InvestingPro offers a wealth of additional tips for investors looking to gain deeper insights into J M Smucker Co's financial health and future prospects. For those interested in a more comprehensive analysis, there are 7 more InvestingPro Tips available, which can be accessed at: https://www.investing.com/pro/SJM. To enhance your investment strategy with these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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