International Flavors & Fragrances Inc. (IFF) is looking forward to a strong quarter

International Flavors & Fragrances Inc. (NYSE: IFF) stock fell -2.37% on Friday to $99.15 against a previous-day closing price of $101.56. With 1.19 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.22 million shares. During the session, the Specialty Chemicals company that operates in wider Basic Materials sector, reached to the highest price of $102.57 whereas the lowest price it dropped to was $99.10. The 52-week range on IFF shows that it touched its highest point at $155.00 and its lowest point at $100.83 during that stretch. It currently has a 1-year price target of $141.79. With its current market cap of 26.02 billion, IFF has annualized dividend of $3.24 while the current yield stands at 3.27%. Beta for the stock currently stands at 1.03.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of IFF was down-trending over the past week, with a drop of -8.18%, but this was down by -13.97% over a month. Three-month performance dropped to -14.31% while six-month performance fell -22.27%. The stock lost -25.21% in the past year, while it has lost -34.19% so far this year. A look at the trailing 12-month EPS for IFF yields 2.49 with Next year EPS estimates of 6.35. For the next quarter, that number is 1.33. This implies an EPS growth rate of -65.20% for this year and 12.01% for next year. EPS is expected to grow by 5.55% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -26.20%.

Float and Shares Shorts:

At present, 255.00 million IFF shares are outstanding with a float of 254.39 million shares on hand for trading. On Aug 30, 2022, short shares totaled 3.12 million, which was 1.22% higher than short shares on Jul 28, 2022. In addition to Mr. Glenn Robert Richter as the firm’s Exec. VP & CFO, Mr. Francisco Fortanet serves as its Exec. VP & Global Operations Officer.

Institutional Ownership:

Through their ownership of 94.18% of IFF’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 46.52% of IFF, in contrast to 46.15% held by mutual funds. Shares owned by individuals account for 13.51%. As the largest shareholder in IFF with 11.89% of the stake, The Vanguard Group, Inc. holds 30,287,855 shares worth 30,287,855. A second-largest stockholder of IFF, Winder Investment Pte Ltd., holds 25,109,000 shares, controlling over 9.85% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in IFF, holding 12,492,315 shares or 4.90% stake. With a 2.96% stake in IFF, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 7,545,142 shares are owned by the mutual fund manager. The Vanguard Mid Cap Index Fund, which owns about 2.30% of IFF stock, is the second-largest Mutual Fund holder. It holds 5,848,678 shares valued at 646.16 million. Vanguard 500 Index Fund holds 2.23% of the stake in IFF, owning 5,686,330 shares worth 628.23 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2022, IFF reported revenue of $3.31B and operating income of $338.00M. Over the past year, revenue came in at $12.63B while operating income stood at $1.02B. It generated $107.00M net income for the quarter, which came to $633.00M over the last twelve months. The EBITDA in the recently reported quarter was $633.00M and diluted EPS was $0.43. EBITDA for the full year was $2.41B.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for IFF since 22 analysts follow the stock currently. There are 10 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 7 believe that the stock is worth HOLDING, 4 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With IFF analysts setting a high price target of $178.00 and a low target of $105.00, the average target price over the next 12 months is $141.79. Based on these targets, IFF could surge 79.53% to reach the target high and rise by 5.9% to reach the target low. Reaching the average price target will result in a growth of 43.01% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. IFF will report FY 2022 earnings on 02/15/2023. Analysts have provided yearly estimates in a range of $6.06 being high and $5.18 being low. For IFF, this leads to a yearly average estimate of $5.65. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. International Flavors & Fragrances Inc. surprised analysts by $0.09 when it reported $1.54 EPS against a consensus estimate of $1.45. The surprise factor in the prior quarter was $0.34. Based on analyst estimates, the high estimate for the next quarter is $1.52 and the low estimate is $1.23. The average estimate for the next quarter is thus $1.33.

Summary of Insider Activity:

Insiders traded IFF stock several times over the past three months with 0 Buys and 1 Sells. In these transactions, 0 shares were bought while 10,000 shares were sold. The number of buy transactions has increased to 22 while that of sell transactions has risen to 16 over the past year. The total number of shares bought during that period was 33,870 while 19,529 shares were sold.

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