Stock rose 8.4%
Ingredion (INGR) reported its fiscal 4Q15 results on January 28, 2016. The stock rose by 8.4% from the previous day and closed at $96.95. The stock rose another 4% and closed at $100.72 on January 29. The company had a solid fiscal 4Q15. It had an increase in the gross and operating profit along with positive growth in earnings. For the quarter, the revenue also rose compared to the same quarter last year.
Ingredion’s stock reacted positively to the strong fiscal 3Q15 results. It rose by 2% and closed at $95.06 on October 29, 2015. The shares rose since the third quarter earnings were released. They traded at $93–$99. So far, the stock gained as much as 9% in 2016. The price movement on a YTD (year-to-date) basis is 5.1%. It’s trading at 14.3% on a trailing-five-day basis. The stock gained as much as 13% in 2015.
Peers in the industry
The company is headquartered in Westchester, Illinois. It’s a packaged food company. Together with its subsidiaries, it manufactures and sells starches and sweeteners to various industries. Its main competitors in the industry are Flowers Foods (FLO), Archer Daniels Midland (ADM), and ConAgra Foods (CAG). They closed at $20.54, $35.3, and $41.6, respectively, on January 29. The stocks returned -4.4%, -3.6%, and -1.2% YTD (year-to-date).
The First Trust Consumer Staples Alpha DEX Fund (FXG) has 3.2% of its portfolio in the Ingredion stock. FXG also invests 1.6% in ConAgra Foods, 1.6% in Flowers Foods, and 3.03% in the Archer Daniels Midland stock. FXG closed at $43.45 and returned -2.3% YTD as of January 29.
In this series, we’ll discuss Ingredion and its peers’ moving averages. We’ll also discuss the company’s performance in fiscal 4Q15, its updated earnings per share guidance, and its guidance for fiscal 2016. We’ll break down the company’s performance by its geographic segments. We’ll also discuss analysts’ recommendation for the stock.