The Case for and Against McCormick & Company, Incorporated (MKC)

McCormick & Company, Incorporated (MKC) is an interesting player in the Consumer Goods space, with a focus on Processed & Packaged Goods. The stock has been active on the tape, currently trading at $98.15, up from yesterday’s close by 0.62%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

This company has been competing with others in the Consumer Goods space and offers its own combination of interesting factors McCormick & Company, Incorporated (MKC) currently trades with a market capitalization of $12.31 Billion. That value represents a market adjusting for revenues that have been growing by 1.31 % on a quarterly year/year basis as of the company’s last quarterly report.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For MKC, the company currently has $125.7 Million of cash on the books, which is offset by $889.6 Million current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $463.5 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $0.78 on a per share basis this quarter. Perhaps, that suggests something about why 1.43% of the outstanding share supply is held by institutional investors.

Technical Analysis

As most professionals know, technical analysis can offer critical insights into what smart money and insiders think about a stock’s prospects going forward. Looking at the stock’s movement on the chart, McCormick & Company, Incorporated recorded a 52-week high of $106.38. It is now trading 8.23% off that level. The stock is trading $98.16 its 50-day moving average by 0.0099999999999909%. The stock carved out a 52-week low down at $88.19.

In recent action, McCormick & Company, Incorporated (MKC) has made a move of -1.10% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 17.9, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 5.10% with $107.65 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of MKC.

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