Smucker's Shares Rally 3.55% Amid Legal Probes and Hostess Impairments August 29 Trading Volume Ranks 308th

On August 29, 2025, The J. M. Smucker Company (SJM) traded with a volume of 0.32 billion shares, ranking 308th in terms of trading activity. The stock closed at $94.41, reflecting a 3.55% increase for the day.

Recent developments highlight ongoing legal and financial challenges for Smucker. Two law firms, Levi & Korsinsky and Pomerantz LLP, have initiated investigations into potential securities law violations, focusing on the company’s financial disclosures. Central to these inquiries is Smucker’s acquisition of Hostess Brands in 2023 for $5.5 billion, with $2.4 billion recorded as goodwill in the Sweet Baked Snacks segment. Subsequent quarterly reports revealed significant underperformance, including an 8% sales decline in the segment during Q3 2025 and a 14% drop in Q4. This led to $794 million and $867 million in goodwill impairments, alongside $208 million and $113 million in trademark impairments for Hostess. The company revised its long-term growth forecast for the segment to 3%, down from prior optimistic projections, citing persistent post-acquisition challenges.

The stock price has been volatile, falling $17.44 per share (15.59%) to $94.41 on June 10, 2025, following the Q4 earnings report. Analysts attribute this to investor concerns over the segment’s sustainability and management’s revised financial outlook. Despite a recent intraday gain, the stock remains under pressure amid ongoing legal scrutiny and operational uncertainties.

Backtesting results indicate that SJM’s price movement aligns with the reported $17.44 decline on June 10, 2025, closing at $94.41. No additional data is provided for further analysis.