J M Smucker Hostess Acquisition Fallout Weighs on 407th-Ranked Stock Amid 0 64 Rise
On August 18, 2025, The J.M. Smucker CompanySJM-- (SJM) traded with a volume of $0.23 billion, ranking 407th in daily trading activity. The stock closed up 0.64% amid ongoing scrutiny over its Hostess Brands acquisition and financial performance.
The company faces an investigation by Hagens Berman, a shareholder rights firm, following a 15% share price drop on June 10, 2025, after SJMSJM-- reported dismal Q4 2025 results. The decline followed a $5.5 billion Hostess acquisition in 2023, which was initially touted as a growth driver but has since led to significant goodwill and trademark impairments. In Q3 2025, SJM recorded a $794 million goodwill impairment and a $208 million Hostess brand impairment, with an additional $867 million and $113 million charges in Q4 2025. These write-downs totaled 38% of the acquisition price, undermining earlier synergies claims.
Hagens Berman alleges SJM may have delayed disclosing these losses, violating securities laws. The firm urges investors with substantial losses to submit claims and invites whistleblowers to assist. SJM’s updated 2026 forecast now reflects reduced sales growth in its Sweet Baked Snacks segment, citing sustained underperformance post-acquisition. The company has yet to provide a public response to the allegations.
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