Sonoco Products Co. (SON) Lowered to “Sell” at Zacks Investment Research
According to Zacks, “For the third quarter, Sonoco expects earnings per share in the range of $0.65–$0.70. Tough market conditions are expected to hurt its corrugating medium operations. Some of its consumer-product customers seem to be struggling to grow packaged food volumes in certain served markets. For 2016, Sonoco guides EPS in the range of $2.68–$2.74. Impact of the loss of a contract on the Display and Packaging segment and the effect of a manufacturing slowdown in the U.S. on the industrial businesses remain near-term concerns. Moreover, stronger dollar, less favorable price cost variance and the slowdown in manufacturing in the U.S. and emerging markets remain near term headwinds for Sonoco.”
SON has been the topic of a number of other research reports. Vertical Research lowered shares of Sonoco Products from a hold rating to a sell rating in a report on Friday, July 22nd. Barclays PLC lifted their price target on shares of Sonoco Products from $40.00 to $44.00 and gave the company an underweight rating in a report on Monday, July 25th. BMO Capital Markets reiterated a hold rating and issued a $46.00 price target on shares of Sonoco Products in a report on Friday, July 22nd. Jefferies Group reiterated a neutral rating on shares of Sonoco Products in a report on Friday, July 22nd. Finally, Vertical Group downgraded shares of Sonoco Products from a hold rating to a sell rating in a research note on Monday, July 25th. Six investment analysts have rated the stock with a sell rating, four have assigned a hold rating and two have given a buy rating to the stock. Sonoco Products currently has a consensus rating of Hold and a consensus price target of $46.25.
Shares of Sonoco Products (NYSE:SON) traded up 0.51% during trading on Tuesday, hitting $50.76. 69,705 shares of the company were exchanged. The stock has a market cap of $5.09 billion, a P/E ratio of 24.06 and a beta of 1.01. The company’s 50-day moving average price is $51.98 and its 200 day moving average price is $49.47. Sonoco Products has a 12 month low of $36.56 and a 12 month high of $53.57.
Sonoco Products (NYSE:SON) last announced its quarterly earnings results on Thursday, July 21st. The company reported $0.73 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.68 by $0.05. The company had revenue of $1.21 billion for the quarter, compared to analyst estimates of $1.26 billion. Sonoco Products had a net margin of 4.37% and a return on equity of 17.66%. Sonoco Products’s revenue for the quarter was down 3.4% on a year-over-year basis. During the same quarter last year, the business earned $0.68 EPS. On average, equities analysts predict that Sonoco Products will post $2.72 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which was paid on Friday, September 9th. Investors of record on Friday, August 12th were paid a dividend of $0.37 per share. This represents a $1.48 annualized dividend and a yield of 2.93%. The ex-dividend date of this dividend was Wednesday, August 10th. Sonoco Products’s dividend payout ratio (DPR) is 69.81%.
In other news, VP Vicki B. Arthur sold 1,721 shares of the business’s stock in a transaction dated Friday, July 22nd. The shares were sold at an average price of $51.00, for a total value of $87,771.00. Following the completion of the sale, the vice president now owns 39,753 shares of the company’s stock, valued at approximately $2,027,403. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director John E. Linville sold 33,746 shares of the business’s stock in a transaction dated Friday, July 22nd. The stock was sold at an average price of $51.54, for a total transaction of $1,739,268.84. Following the completion of the sale, the director now directly owns 223,787 shares of the company’s stock, valued at approximately $11,533,981.98. The disclosure for this sale can be found here. Corporate insiders own 1.90% of the company’s stock.
Several large investors have recently added to or reduced their stakes in the company. Norges Bank bought a new stake in Sonoco Products during the fourth quarter valued at $34,493,000. Glenmede Trust Co. NA raised its position in Sonoco Products by 31.2% in the first quarter. Glenmede Trust Co. NA now owns 10,532 shares of the company’s stock valued at $511,000 after buying an additional 2,507 shares during the period. Teachers Advisors Inc. raised its position in Sonoco Products by 18.4% in the first quarter. Teachers Advisors Inc. now owns 97,797 shares of the company’s stock valued at $4,750,000 after buying an additional 15,204 shares during the period. BlackRock Inc. raised its position in Sonoco Products by 98.1% in the first quarter. BlackRock Inc. now owns 246,432 shares of the company’s stock valued at $11,969,000 after buying an additional 122,054 shares during the period. Finally, BlackRock Group LTD raised its position in Sonoco Products by 89.3% in the first quarter. BlackRock Group LTD now owns 350,531 shares of the company’s stock valued at $17,025,000 after buying an additional 165,319 shares during the period. 68.99% of the stock is owned by institutional investors.
About Sonoco Products
Sonoco Products Company (Sonoco) is a manufacturer of industrial and consumer packaging products and a provider of packaging services. The Company operates in four segments: Consumer Packaging, Paper and Industrial Converted Products, Display and Packaging, and Protective Solutions. Its Consumer Packaging segment’s products and services include round composite cans, aluminum, steel and peelable membrane easy-open closures for composite and metal cans; plastic bottles, cups and trays, and printed flexible packaging and global brand management.
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