- Institutional flows: Mawer trimmed its MKC position by 55,135 shares; Mitsubishi UFJ Asset Management raised its stake to ~550,000 shares. [1]
- Wall Street thematic: Bank of America highlighted McCormick among 16 “non‑AI” stock ideas, noting tariff headwinds but steady sales trajectory. [2]
- Price check (intraday): MKC trades around $65.71, up about 2% today (14:02 UTC).
What’s new on November 12, 2025
1) Institutions are repositioning around MKC
Two notable fund disclosures hit the tape today:
- Mawer Investment Management reduced its MKC holding by 10.3% (down 55,135 shares) to 481,513 shares (≈0.18% of the company), based on its latest 13F data summarized today. [3]
- Mitsubishi UFJ Asset Managementlifted its MKC stake by 7.4% to 550,337 shares (≈0.21% ownership). [4]
While 13F‑based stories reflect prior‑quarter positions, their publication today adds fresh context to how large holders are sizing MKC into year‑end. [5]
2) BofA puts MKC on its “beyond AI” screen
In a MarketWatch write‑up today, Bank of America urged investors to look outside the AI trade and listed 16 high‑conviction names—including McCormick—citing the potential for steady sales despite tariff risks. The inclusion underscores the “defensive‑growth” appeal of staples that can lean on brand strength and pricing. [6]
How today’s updates fit the 2025 narrative
- Earnings & guidance context: On Oct. 7, McCormick delivered Q3 beats ($1.72B revenue; $0.85 adjusted EPS) but trimmed FY25 EPS outlook to $3.00–$3.05 amid higher commodity costs and tariffs. That reset frames today’s institutional moves and BofA’s selection. [7]
- Margins: Coverage last week highlighted a 120 bps year‑over‑year decline in Q3 adjusted gross margin, a key watch‑item into the holiday quarter. [8]
- Brand & product momentum: On Nov. 5, McCormick unveiled the first major redesign in 30+ years for its Gourmet line—72 varieties, 54 organic—rolling out through January 2026. Packaging upgrades can support shelf visibility just as holiday demand ramps. [9]
- International expansion: In August, McCormick agreed to boost its Grupo Herdez JV stake in Mexico to 75% in a $750M deal, pending approvals—expanding its Latin America footprint. [10]
Market snapshot & valuation quick‑take
- Today’s trade: MKC hovers near $65–$66, up around 2% midday (UTC).
- By the numbers: Recent snapshots put MKC around a ~22x P/E, PEG ~3.7, beta ~0.6, with a 12‑month range ~$63–$86 and 50/200‑day averages near $66.7 / $70.7. These metrics position MKC as a lower‑beta consumer staple with mid‑teens implied upside to many aggregated targets. [11]
- Street view: Aggregators show an average 12‑month target in the upper‑$70s and a broadly Hold/Neutral consensus—consistent with a “quality defensive” setup balancing tariff‑driven margin risk and durable brand equity. [12]
Why it matters
- Fund flows can flag near‑term sentiment shifts: One large manager trimming while another adds suggests divergent views on margin recovery and pricing power into FY26. [13]
- Thematic support from BofA’s screen gives MKC visibility among investors rotating away from crowded AI trades and back toward defensive cash‑generators. [14]
- Execution watch‑points remain: tariffs/inputs vs. productivity (CCI) savings, plus the holiday quarter mix and the pace of the Mexico JV closing and synergy delivery. [15]
What to watch next
- Holiday sell‑through & mix: Do premium spices and seasonal baking SKUs benefit from the Gourmet refresh? [16]
- Margins vs. tariffs: Any Q4 evidence of stabilization after the 120 bps Q3 compression. [17]
- FY26 setup: Updated commentary on Mexico JV timing and accretion; refreshed 2026 goals for volume‑led growth and cost‑savings. [18]
Sources (today’s and recent context)
- MarketBeat—Mawer trims MKC stake; Mitsubishi UFJ AM raises MKC stake. [19]
- MarketWatch—BofA lists 16 non‑AI stocks, including McCormick. [20]
- Reuters—Q3 beat; FY25 EPS outlook 3.00–3.053.00–3.053.00–3.05 adjusted for tariffs/inputs. [21]
- Yahoo Finance—Q3 gross margin −120 bps (analysis). [22]
- McCormick corporate newsroom & lifestyle coverage—Gourmet line redesign (Nov. 5) with 72 SKUs / 54 organic; rollout through Jan 2026. [23]
- Reuters—Mexico JV stake to 75% for $750M (Aug. 21). [24]
Disclosure: This article is for informational purposes only and is not investment advice. Always do your own research.
References
1. www.marketbeat.com, 2. www.marketwatch.com, 3. www.marketbeat.com, 4. www.marketbeat.com, 5. www.marketbeat.com, 6. www.marketwatch.com, 7. www.reuters.com, 8. finance.yahoo.com, 9. news.mccormick.com, 10. www.reuters.com, 11. www.marketbeat.com, 12. www.marketbeat.com, 13. www.marketbeat.com, 14. www.marketwatch.com, 15. www.reuters.com, 16. www.southernliving.com, 17. finance.yahoo.com, 18. www.reuters.com, 19. www.marketbeat.com, 20. www.marketwatch.com, 21. www.reuters.com, 22. finance.yahoo.com, 23. news.mccormick.com, 24. www.reuters.com
