Avery Dennison Corp. (AVY) Rating Increased to Buy at Zacks Investment Research
Avery Dennison Corp. (NYSE:AVY) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued on Wednesday. The firm currently has a $87.00 target price on the stock. Zacks Investment Research’s price target points to a potential upside of 10.35% from the stock’s current price.
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 full year 2016. Its endeavor to reduce fixed costs, localize material sourcing and responding more quickly to changes in customer needs by decentralizing decision making will aid growth. The company's recent acquisition of Mactac will add capacity to support growth for both graphics and tapes. Further, Avery Dennison will gain from constant focus on productivity and capital discipline. Continued focus on execution of strategies, cost control and share repurchases will also drive results. The company has a positve record of earnings surprises in the recent quarters.”
A number of other research firms have also recently weighed in on AVY. JPMorgan Chase & Co. raised their price objective on shares of Avery Dennison Corp. from $78.00 to $80.00 and gave the stock a “neutral” rating in a report on Wednesday, July 27th. Bank of America Corp. cut shares of Avery Dennison Corp. from a “buy” rating to an “underperform” rating and set a $75.00 target price on the stock. in a report on Friday, July 1st. One investment analyst has rated the stock with a sell rating, two have given a hold rating and three have issued a buy rating to the company. The stock has a consensus rating of “Hold” and an average price target of $78.00.
Avery Dennison Corp. (NYSE:AVY) opened at 78.84 on Wednesday. Avery Dennison Corp. has a 52 week low of $55.29 and a 52 week high of $79.27. The firm has a market cap of $7.01 billion, a price-to-earnings ratio of 23.50 and a beta of 1.01. The firm’s 50-day moving average is $77.52 and its 200-day moving average is $74.58.
Avery Dennison Corp. (NYSE:AVY) last released its quarterly earnings data on Tuesday, July 26th. The company reported $1.09 earnings per share for the quarter, topping analysts’ consensus estimates of $1.01 by $0.08. Avery Dennison Corp. had a net margin of 5.18% and a return on equity of 34.82%. The company had revenue of $1.54 billion for the quarter, compared to analysts’ expectations of $1.54 billion. During the same quarter last year, the company earned $0.91 earnings per share. The firm’s revenue for the quarter was up 1.7% on a year-over-year basis. On average, equities analysts anticipate that Avery Dennison Corp. will post $3.94 earnings per share for the current year.
The company also recently disclosed a quarterly dividend, which was paid on Wednesday, September 21st. Investors of record on Wednesday, September 7th were given a $0.41 dividend. The ex-dividend date was Friday, September 2nd. This represents a $1.64 dividend on an annualized basis and a yield of 2.08%. Avery Dennison Corp.’s dividend payout ratio (DPR) is 48.81%.
In related news, VP Susan C. Miller sold 2,000 shares of Avery Dennison Corp. stock in a transaction on Friday, July 1st. The shares were sold at an average price of $73.31, for a total value of $146,620.00. Following the transaction, the vice president now directly owns 8,518 shares in the company, valued at approximately $624,454.58. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, VP Anne Hill sold 11,567 shares of Avery Dennison Corp. stock in a transaction on Friday, August 12th. The shares were sold at an average price of $78.10, for a total transaction of $903,382.70. Following the completion of the transaction, the vice president now owns 36,280 shares in the company, valued at $2,833,468. The disclosure for this sale can be found here. 2.70% of the stock is currently owned by corporate insiders.
A number of institutional investors have recently bought and sold shares of AVY. Bank of Montreal Can purchased a new position in Avery Dennison Corp. during the second quarter worth $158,866,000. Norges Bank bought a new stake in shares of Avery Dennison Corp. during the fourth quarter valued at approximately $56,921,000. Goldman Sachs Group Inc. raised its stake in shares of Avery Dennison Corp. by 36.0% in the first quarter. Goldman Sachs Group Inc. now owns 2,004,628 shares of the company’s stock valued at $144,554,000 after buying an additional 531,095 shares during the last quarter. BlackRock Investment Management LLC raised its stake in shares of Avery Dennison Corp. by 129.1% in the second quarter. BlackRock Investment Management LLC now owns 745,475 shares of the company’s stock valued at $55,724,000 after buying an additional 420,067 shares during the last quarter. Finally, WBI Investments Inc. bought a new stake in shares of Avery Dennison Corp. during the second quarter valued at approximately $28,451,000. Hedge funds and other institutional investors own 89.50% of the company’s stock.
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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