In the fast-moving world of finance, it is always intriguing to observe the actions of large institutional funds and corporations as they buy and sell stocks. In the recent 13F filing with the SEC, Gulf International Bank UK Ltd has reported that it reduced its holdings in McCormick & Company, Incorporated (NYSE:MKC) by 16.9% during the first quarter. The fund stated that it had owned 32,754 shares of the company’s stock but sold off 6,641 shares during this period. As an astute observer of these changes, one could not help but wonder what motivated Gulf International Bank to take this action.
What is interesting about this move is that McCormick & Company appears to be performing well financially. The company has a market cap of $25.16 billion and an impressive price-to-earnings-growth ratio of 4.71. McCormick & Company supplies spices, seasoning mixes, condiments like mustard and salad dressings across numerous brands including Lawry’s and Schwartz.
However, in a separate news item related to McCormick & Company, CEO Lawrence Erik Kurzius sold almost 40,000 shares toward mid-May at an average price of $90.02 per share for a total transaction value of $3,592,338.12. This certainly raises some questions as insiders possess shrewd knowledge about their company’s performance; perhaps Mr Kurzius thought it was time to reduce his stake while his stock was trading high or maybe he expected that there was no imminent chance for near-term growth opportunities.
At present corporate insiders hold a significant stake amounting up to around 19% in McCormick & Company Incorporated; however this figure could soon come down if other executives sell their stakes too.
As can be seen from the figures presented here such fluctuation can significantly impact the movement in stock prices creating both opportunities as well as risks for newer investors wishing to enter the market. At present, McCormick & Company is trading at an all-time high of $93.79 per share; it will be interesting to observe its performance in the weeks and months ahead if there are further reports on any changes from other major holders or insiders.
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Shifts in Shareholder Structure: Vanguard Group and State Street Corp Boost Their Positions in McCormick & Company, Inc.
McCormick & Company, Incorporated has seen changes to its shareholder structure as large investors boosted their positions in the company, according to recent reports. Vanguard Group and State Street Corp were among those that boosted holding in McCormick during Q3 of 2016. In late 2016, Moneta Group Investment Advisors also significantly increased its McCormick holdings. The importance of shareholder activity should not be overlooked by investors, since institutional shareholders can have major sway over a company’s direction. Meanwhile, sell-side analysts have given the stock mixed ratings; Bloomberg.com currently rates it ‘Hold’ with a consensus target price of $82.60.