Are Smart Investors Making the Right Decision? International Flavors & Fragrances Inc. (IFF)

International Flavors & Fragrances Inc. (NYSE: IFF) stock fell -2.58% on Thursday to $78.26 against a previous-day closing price of $80.33. With 2.65 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.83 million shares. During the session, the Specialty Chemicals company that operates in wider Basic Materials sector, reached to the highest price of $80.08 whereas the lowest price it dropped to was $78.04. The 52-week range on IFF shows that it touched its highest point at $135.17 and its lowest point at $80.30 during that stretch. It currently has a 1-year price target of $112.84. With its current market cap of 20.08 billion, IFF has annualized dividend of $3.24 while the current yield stands at 4.14%. Beta for the stock currently stands at 1.12.

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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 -7.02%, but this was down by -17.08% over a month. Three-month performance dropped to -16.57% while six-month performance fell -21.60%. The stock lost -39.12% in the past year, while it has lost -25.35% so far this year. A look at the trailing 12-month EPS for IFF yields -8.32 with Next year EPS estimates of 5.61. For the next quarter, that number is 1.14. This implies an EPS growth rate of -764.20% for this year and 20.18% for next year. EPS is expected to grow by 4.06% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -27.30%.

Float and Shares Shorts:

At present, 255.00 million IFF shares are outstanding with a float of 254.38 million shares on hand for trading. On May 14, 2023, short shares totaled 3.46 million, which was 1.35% higher than short shares on Apr 13, 2023. In addition to Mr. Franklin K. Clyburn Jr. as the firm’s CEO & Director, Mr. Glenn Robert Richter serves as its Chief Financial & Bus. Transformation Officer.

Institutional Ownership:

Through their ownership of 97.32% of IFF’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 51.86% of IFF, in contrast to 43.01% held by mutual funds. Shares owned by individuals account for 13.51%. As the largest shareholder in IFF with 12.13% of the stake, The Vanguard Group, Inc. holds 30,946,070 shares worth 30,946,070. A second-largest stockholder of IFF, Winder Investment Pte Ltd., holds 25,356,381 shares, controlling over 9.94% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in IFF, holding 13,374,991 shares or 5.24% stake. With a 3.11% stake in IFF, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 7,928,192 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.35% of IFF stock, is the second-largest Mutual Fund holder. It holds 5,984,282 shares valued at 580.24 million. Vanguard Mid Cap Index Fund holds 2.33% of the stake in IFF, owning 5,952,377 shares worth 577.14 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 Mar 30, 2023, IFF reported revenue of $3.31B and operating income of $338.00M. The EBITDA in the recently reported quarter was $633.00M and diluted EPS was $0.43.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for IFF since 0 analysts follow the stock currently. 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 $145.00 and a low target of $75.00, the average target price over the next 12 months is $113.73. Based on these targets, IFF could surge 85.28% to reach the target high and fall by -4.17% to reach the target low. Reaching the average price target will result in a growth of 45.32% 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.

Summary of Insider Activity:

Insiders traded IFF stock several times over the past three months with 4 Buys and 2 Sells. In these transactions, 4,913 shares were bought while 938 shares were sold. The number of buy transactions has increased to 13 while that of sell transactions has risen to 10 over the past year. The total number of shares bought during that period was 29,264 while 15,305 shares were sold.

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