IFF Gained 6.8% in September: Can It Maintain Its Momentum?



IFF in September

International Flavors and Fragrances (IFF) was the second-ranked performer among chemical companies for September. IFF stock gained ~6.8% in September and outperformed the SPDR S&P 500 ETF Trust (SPY). SPY posted a slim gain of 0.4% for the month.

IFF’s peers Sensient Technologies (SXT), Clorox (CLX), and Estée Lauder (EL) gained 7.7%, 3.75%, and 3.7%, respectively, in September.

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What drove IFF stock up?

In September, International Flavors and Fragrances (IFF) received a green light from the relevant countries for its acquisition of Frutarom. The final approval was received on September 14 from Russia. IFF agreed to pay $71.19 in cash and 0.249 shares of IFF for every common Frutarom share it purchased.

To fund the acquisition, IFF issued senior notes for 1.1 billion euros and $1.5 billion, which it expects to be fully subscribed. IFF completed the acquisition of Frutarom on October 4.

Moving averages

International Flavors and Fragrances (IFF) stock fell significantly after it announced the acquisition deal, as Wall Street viewed this acquisition as expensive. Since then, IFF stock has traded well below its 100-day moving average price. However, the positive developments discussed in this article have pushed the stock back to trade above the 100-day moving average price of $129.52.

Although IFF’s 100-day moving average has fallen from $150.00 to its current level, it’s showing signs of stabilization. IFF’s 14-day RSI (relative strength index) of 55 indicates that the stock is neither overbought nor oversold.


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