Silgan Holdings Inc. (SLGN) Rating Increased to Hold at Zacks Investment Research
Silgan Holdings Inc. (NASDAQ:SLGN) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued on Monday.
According to Zacks, “Silgan will benefit from acquisitions, increased investments and continued focus on its footprint optimization programs across each of its businesses. These are well reflected in the company’s positive record of earnings surprises in recent quarters. However, Silgan trimmed its earnings per share guidance to $2.70–$2.90 for 2016. The mid-point depicts a 6% year over year dip, reflecting lower demand from certain U.S. pack customers, a cool and wet start to the European growing season. For the third quarter, Silgan guides earnings in the range of $1.20–$1.30, a 1% dip at the mid-point year over year. Incremental costs from its footprint optimization programs and high debt also remain concerns.”
Other analysts also recently issued research reports about the company. Wells Fargo & Co. downgraded Silgan Holdings from an “outperform” rating to a “market perform” rating in a research note on Thursday, July 28th. BMO Capital Markets downgraded Silgan Holdings from an “outperform” rating to a “market perform” rating and cut their target price for the company from $58.00 to $47.00 in a research note on Wednesday, June 8th. Citigroup Inc. cut their target price on Silgan Holdings from $55.00 to $54.00 and set a “neutral” rating on the stock in a research note on Tuesday, August 2nd. Goldman Sachs Group Inc. reaffirmed a “neutral” rating and set a $53.00 target price on shares of Silgan Holdings in a research note on Wednesday, June 1st. Finally, JPMorgan Chase & Co. assumed coverage on Silgan Holdings in a research note on Tuesday, September 13th. They set a “neutral” rating and a $51.00 target price on the stock. One analyst has rated the stock with a sell rating, nine have given a hold rating and two have given a buy rating to the company. The company has an average rating of “Hold” and an average price target of $52.33.
Shares of Silgan Holdings (NASDAQ:SLGN) opened at 48.61 on Monday. Silgan Holdings has a 12 month low of $47.00 and a 12 month high of $56.06. The stock has a 50 day moving average price of $48.74 and a 200 day moving average price of $50.89. The stock has a market capitalization of $2.94 billion, a P/E ratio of 18.89 and a beta of 0.54.
Silgan Holdings (NASDAQ:SLGN) last announced its quarterly earnings results on Wednesday, July 27th. The company reported $0.60 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.56 by $0.04. The business had revenue of $874.60 million for the quarter, compared to the consensus estimate of $895.15 million. Silgan Holdings had a return on equity of 25.69% and a net margin of 4.23%. The business’s revenue was down 4.3% on a year-over-year basis. During the same quarter last year, the business posted $0.71 EPS. On average, analysts anticipate that Silgan Holdings will post $2.80 EPS for the current fiscal year.
The business also recently announced a quarterly dividend, which was paid on Thursday, September 15th. Investors of record on Thursday, September 1st were issued a $0.17 dividend. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.40%. The ex-dividend date of this dividend was Tuesday, August 30th. Silgan Holdings’s payout ratio is 26.25%.
In other news, VP Anthony P. Andreacchi sold 1,221 shares of Silgan Holdings stock in a transaction on Tuesday, August 30th. The stock was sold at an average price of $48.48, for a total transaction of $59,194.08. The sale was disclosed in a filing with the SEC, which is available at this link. Also, VP B Frederik Prinzen sold 1,000 shares of Silgan Holdings stock in a transaction on Thursday, August 18th. The shares were sold at an average price of $48.05, for a total value of $48,050.00. The disclosure for this sale can be found here. 32.94% of the stock is owned by corporate insiders.
Hedge funds and other institutional investors have recently modified their holdings of the stock. LS Investment Advisors LLC increased its position in shares of Silgan Holdings by 78.4% in the second quarter. LS Investment Advisors LLC now owns 2,467 shares of the company’s stock worth $127,000 after buying an additional 1,084 shares in the last quarter. Pacer Advisors Inc. acquired a new position in shares of Silgan Holdings during the second quarter worth $129,000. Sei Investments Co. increased its position in shares of Silgan Holdings by 127.2% in the second quarter. Sei Investments Co. now owns 3,729 shares of the company’s stock worth $192,000 after buying an additional 2,088 shares in the last quarter. US Bancorp DE increased its position in shares of Silgan Holdings by 7.2% in the second quarter. US Bancorp DE now owns 4,538 shares of the company’s stock worth $233,000 after buying an additional 304 shares in the last quarter. Finally, M&T Bank Corp acquired a new position in shares of Silgan Holdings during the first quarter worth $289,000. Institutional investors and hedge funds own 68.85% of the company’s stock.
About Silgan Holdings
Silgan Holdings Inc (Silgan) is a manufacturer of rigid packaging for shelf-stable food and other consumer goods products. The Company operates through three segments: metal container, closures and plastic container. The Company’s products include steel and aluminum containers for human and pet food and general line products; metal, composite and plastic closures for food and beverage products, and custom designed plastic containers and closures for personal care, food, healthcare, pharmaceutical, household and industrial chemical, pet care, agricultural, automotive and marine chemical products.
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