Avery Dennison Corp. (AVY) Downgraded by Zacks Investment Research to “Hold”
According to Zacks, “Following the strong operating performance in the second quarter 2016, Avery Dennison raised its adjusted earnings per share guidance to a new range of $3.80–$3.95 for 2016. Its endeavor to reduce fixed costs, localize material sourcing and responding more quickly to changes in customer needs will aid growth. The company's recent acquisition of Mactac will add capacity to support growth for both graphics and tapes. It will also gain from constant focus on productivity, capital discipline, execution of strategies, cost control and share repurchases. These are well reflected in the company’s positive record of earnings surprises in recent quarters. However, Avery Dennison anticipates that the negative impact of currency translation will reduce full year 2016 net sales by around 2.5% and pretax earnings by roughly $18 million. Challenging comparisons, weak demand in Europe and China also remain concerns.”
A number of other research analysts have also recently weighed in on the company. JPMorgan Chase & Co. lifted their target price on Avery Dennison Corp. from $78.00 to $80.00 and gave the company a neutral rating in a report on Wednesday, July 27th. Bank of America Corp. lowered Avery Dennison Corp. from a buy rating to an underperform rating and set a $75.00 price objective on the stock. in a research report on Friday, July 1st. One equities research analyst has rated the stock with a sell rating, three have given a hold rating and two have given a buy rating to the company. The company presently has an average rating of Hold and a consensus price target of $78.14.
Shares of Avery Dennison Corp. (NYSE:AVY) opened at 77.62 on Tuesday. The company has a 50 day moving average price of $77.46 and a 200-day moving average price of $74.53. The firm has a market capitalization of $6.90 billion, a PE ratio of 23.14 and a beta of 1.01. Avery Dennison Corp. has a 12 month low of $55.29 and a 12 month high of $79.27.
Avery Dennison Corp. (NYSE:AVY) last issued its earnings results on Tuesday, July 26th. The company reported $1.09 earnings per share for the quarter, beating the Zacks’ consensus estimate of $1.01 by $0.08. Avery Dennison Corp. had a return on equity of 34.82% and a net margin of 5.18%. The firm had revenue of $1.54 billion for the quarter, compared to analysts’ expectations of $1.54 billion. During the same quarter last year, the firm earned $0.91 earnings per share. The firm’s revenue for the quarter was up 1.7% compared to the same quarter last year. Equities research analysts expect that Avery Dennison Corp. will post $3.94 EPS for the current fiscal year.
The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 21st. Stockholders of record on Wednesday, September 7th will be given a dividend of $0.41 per share. This represents a $1.64 dividend on an annualized basis and a dividend yield of 2.11%. The ex-dividend date of this dividend is Friday, September 2nd. Avery Dennison Corp.’s payout ratio is 48.81%.
In other news, insider Georges Gravanis sold 39,117 shares of Avery Dennison Corp. stock in a transaction dated Thursday, July 28th. The stock was sold at an average price of $77.71, for a total transaction of $3,039,782.07. Following the sale, the insider now directly owns 28,924 shares of the company’s stock, valued at $2,247,684.04. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, VP Susan C. Miller sold 2,000 shares of Avery Dennison Corp. stock in a transaction dated Friday, July 1st. The stock was sold at an average price of $73.31, for a total value of $146,620.00. Following the sale, the vice president now directly owns 8,518 shares in the company, valued at $624,454.58. The disclosure for this sale can be found here. Insiders own 2.70% of the company’s stock.
Hedge funds have recently made changes to their positions in the company. Springbok Capital Management LLC acquired a new stake in shares of Avery Dennison Corp. during the first quarter worth about $136,000. Financial Architects Inc acquired a new stake in shares of Avery Dennison Corp. during the second quarter worth about $169,000. Whittier Trust Co. raised its stake in shares of Avery Dennison Corp. by 21.5% in the second quarter. Whittier Trust Co. now owns 2,357 shares of the company’s stock worth $176,000 after buying an additional 417 shares during the last quarter. Creative Planning raised its stake in shares of Avery Dennison Corp. by 62.0% in the second quarter. Creative Planning now owns 2,578 shares of the company’s stock worth $193,000 after buying an additional 987 shares during the last quarter. Finally, Veritable L.P. acquired a new stake in shares of Avery Dennison Corp. during the second quarter worth about $206,000. 89.50% of the stock is currently owned by institutional investors and hedge funds.
Avery Dennison Corp. Company Profile
Avery Dennison Corporation (Avery Dennison) is engaged in the production of pressure-sensitive materials and a range of tickets, tags, labels and other converted products. The Company’s pressure-sensitive materials are sold to label printers and converters that convert the materials into labels and other products through embossing, printing, stamping and die-cutting.
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