Marzetti (NASDAQ:MZTI) Shares Gap Down Following Weak Earnings

The Marzetti Company (NASDAQ:MZTI)’s share price gapped down prior to trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $173.91, but opened at $165.00. Marzetti shares last traded at $161.58, with a volume of 9,806 shares changing hands.

The company reported $2.15 earnings per share for the quarter, missing analysts’ consensus estimates of $2.23 by ($0.08). The company had revenue of $509.77 million during the quarter. Marzetti had a return on equity of 18.86% and a net margin of 8.77%.The business’s quarterly revenue was up 1.7% compared to the same quarter last year.

Marzetti Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, December 31st. Stockholders of record on Friday, December 5th were issued a dividend of $1.00 per share. The ex-dividend date of this dividend was Friday, December 5th. This represents a $4.00 dividend on an annualized basis and a dividend yield of 2.5%. Marzetti’s dividend payout ratio is currently 64.94%.

Analyst Ratings Changes

Several brokerages have commented on MZTI. Wall Street Zen downgraded Marzetti from a “buy” rating to a “hold” rating in a report on Saturday. Stephens restated an “equal weight” rating and set a $190.00 price target on shares of Marzetti in a report on Tuesday. Weiss Ratings reiterated a “hold (c)” rating on shares of Marzetti in a research note on Friday, January 9th. Finally, DA Davidson upped their target price on shares of Marzetti from $179.00 to $184.00 and gave the company a “neutral” rating in a research note on Wednesday, November 12th. One investment analyst has rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $191.33.

Institutional Trading of Marzetti

Institutional investors and hedge funds have recently modified their holdings of the stock. M&T Bank Corp acquired a new position in shares of Marzetti in the 4th quarter valued at $1,118,569,000. Vanguard Group Inc. bought a new stake in Marzetti during the 4th quarter worth approximately $367,969,000. William Blair Investment Management LLC lifted its stake in Marzetti by 21.2% in the second quarter. William Blair Investment Management LLC now owns 873,357 shares of the company’s stock valued at $150,890,000 after buying an additional 153,052 shares in the last quarter. Boston Trust Walden Corp boosted its holdings in shares of Marzetti by 14.7% in the second quarter. Boston Trust Walden Corp now owns 344,605 shares of the company’s stock valued at $59,537,000 after buying an additional 44,279 shares during the period. Finally, Principal Financial Group Inc. acquired a new stake in shares of Marzetti during the fourth quarter worth $40,196,000. 66.44% of the stock is owned by institutional investors.

Marzetti Trading Down 8.2%

The stock’s 50 day moving average is $166.77 and its two-hundred day moving average is $171.26. The stock has a market capitalization of $4.40 billion, a price-to-earnings ratio of 25.91 and a beta of 0.39.

About Marzetti

Lancaster Colony Corporation engages in the manufacturing and marketing of specialty food products for the retail and foodservice channels in the United States. It operates in two segments, Retail and Foodservice. The company offers frozen garlic bread under the New York BRAND Bakery; frozen Parkerhouse style yeast and dinner rolls under the Sister Schubert's brand; salad dressings under the Marzetti, Simply Dressed, Cardini's, and Girard's brands; vegetable and fruit dips under the Marzetti brand; croutons and salad toppings under the New York BRAND Bakery, Chatham Village, and Marzetti brands; and frozen pasta under the Marzetti Frozen Pasta brand.