J M Smucker Stock Sets Sights on Best Day in Months After Earnings

SJM also lifted its 2021 forecast

Deputy Editor
Aug 25, 2020 at 8:50 AM
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Though another earnings season has come and gone, a few names are still trickling into the earnings confessional, including J M Smucker Co. (NYSE:SJM). The shares are up 5.3% at $119 ahead of the open, after the packaged food producer announced profits of $2.37 for its fiscal first-quarter, and revenue of $1.97 billion -- handily beating out analysts' estimates. The firm also lifted its fiscal 2021 adjusted profit, citing strong sales for its coffee, frozen sandwiches, and fruit spreads. 

The stock, which has been middling for months, is on pace for its best day since March. Plus, it's set to topple $116 -- a level that snuffed out SJM's last two rally attempts -- for the first time since mid-May. For the year, J M Smucker stock is up over 14%. 

Analysts have yet to chime in on the Folgers parent, though a round of upgrades and/ or price-target hikes could be on the horizon. Of the nine in coverage, six say "hold," and three call SJM a "strong sell," with not a single "buy" on the books. Plus, the 12-month consensus price target of $110.92 is a 1.8% discount to last night's close. 

Meanwhile, an unwinding of short interest could also propel J M Smucker stock higher. Short interest fell 1.8% in the last reporting period, but the 7.67 million shares sold short still make up a healthy 6.9% of SJM's available float. It would take almost eight days to buy back these bearish bets, at the security's average pace of trading, leaving plenty of room for a short squeeze. 

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