Jacques Tapiero, a director at McCormick (NYSE:MKC) & Co. Inc. (NYSE:MKC), recently sold a significant portion of his holdings in the company. On November 4, Tapiero sold 5,000 shares of McCormick's common stock at an average price of $78.33 per share, amounting to a total transaction value of $391,672.
In an earlier transaction on the same day, Tapiero exercised options to acquire 5,000 shares at a price of $38.145 per share, reflecting a total value of $190,725. Following these transactions, Tapiero's direct holdings in McCormick now stand at 28,217.326 shares.
Additionally, Tapiero holds 2,620 shares of McCormick's non-voting common stock and 2,866.946 shares in a non-qualified retirement savings plan, categorized as phantom stock. These transactions are part of routine financial management and provide insights into the trading activities of company insiders.
In other recent news, McCormick & Company has made several significant announcements. The company has projected $8 billion in annual net sales by 2028, maintaining its 2024 guidance and long-term growth objectives. McCormick's third-quarter earnings and revenue results surpassed analyst expectations, with a 15% rise in adjusted operating income to $288 million year-over-year. Adjusted earnings per share reached $0.83, surpassing the consensus estimate of $0.67. As a result, McCormick updated its full-year 2024 guidance, adding $0.05 to account for a discrete tax benefit.
Despite these strong earnings, analyst firms including TD Cowen, Jefferies, and HSBC maintained a Hold rating on McCormick's stock. TD Cowen expressed skepticism about McCormick's ability to meet its organic growth targets due to potential challenges in the Chinese market. However, BofA Securities lifted McCormick's stock target and maintained a Buy rating, citing the strong earnings and improved outlook.
McCormick outlined a strategy to achieve a 4% organic growth rate by the fiscal year 2026, shifting its growth strategy away from relying on acquisitions. The company also anticipates organic sales growth of 2-3% for fiscal year 2025, aligning with consensus estimates. Despite the positive third-quarter results, McCormick's forecast implies a weaker fourth-quarter EPS growth, anticipating a 12% decline year-over-year. McCormick's full-year 2024 outlook was updated, with a slight increase in adjusted EPS guidance to a range of $2.85-$2.90. These are the recent developments from McCormick & Company.
InvestingPro Insights
To provide additional context to Jacques Tapiero's recent stock transactions, let's examine some key financial metrics and insights for McCormick & Co. Inc. (NYSE:MKC).
According to InvestingPro data, McCormick currently has a market capitalization of $21.04 billion, positioning it as a significant player in the consumer staples sector. The company's P/E ratio stands at 26.52, which is relatively high and aligns with one of the InvestingPro Tips suggesting that McCormick is "Trading at a high P/E ratio relative to near-term earnings growth."
Despite the high valuation, McCormick has demonstrated strong financial performance. The company's revenue for the last twelve months as of Q3 2024 was $6.68 billion, with a gross profit margin of 38.48%. This solid profitability is reflected in another InvestingPro Tip, which notes that McCormick has been "Profitable over the last twelve months."
Importantly for investors, McCormick has a strong track record of dividend payments. An InvestingPro Tip highlights that the company "Has raised its dividend for 38 consecutive years," underscoring its commitment to shareholder returns. The current dividend yield is 2.15%, which may be attractive to income-focused investors.
It's worth noting that McCormick's stock has shown positive momentum, with a year-to-date price total return of 16.19% and a one-year price total return of 23.13%. This performance suggests that despite insider selling, the market maintains a positive outlook on the company.
For readers interested in a more comprehensive analysis, InvestingPro offers additional tips and insights beyond those mentioned here. In fact, there are 5 more InvestingPro Tips available for McCormick, providing a deeper understanding of the company's financial health and market position.
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