Bank of America Corp. Downgrades Sonoco Products Co. (SON) to Underperform
Bank of America Corp. cut shares of Sonoco Products Co. (NYSE:SON) from a neutral rating to an underperform rating in a report published on Monday. The analysts noted that the move was a valuation call.
A number of other equities analysts also recently commented on the stock. Jefferies Group upped their target price on shares of Sonoco Products from $42.00 to $46.00 and gave the stock a hold rating in a research note on Thursday, July 14th. Zacks Investment Research downgraded shares of Sonoco Products from a buy rating to a hold rating in a research note on Monday, June 27th. Deutsche Bank AG set a $42.00 target price on shares of Sonoco Products and gave the stock a hold rating in a research note on Sunday, July 24th. BMO Capital Markets restated a hold rating and issued a $46.00 target price on shares of Sonoco Products in a research note 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 research analysts have rated the stock with a sell rating, four have given a hold rating and two have given a buy rating to the stock. Sonoco Products has a consensus rating of Hold and a consensus price target of $46.25.
Shares of Sonoco Products (NYSE:SON) opened at 51.32 on Monday. The company has a market cap of $5.14 billion, a P/E ratio of 24.32 and a beta of 1.01. Sonoco Products has a 12 month low of $36.56 and a 12 month high of $53.57. The company’s 50 day moving average is $51.99 and its 200 day moving average is $49.49.
Sonoco Products (NYSE:SON) last issued its quarterly earnings results on Thursday, July 21st. The company reported $0.73 EPS for the quarter, beating the consensus estimate of $0.68 by $0.05. The company had revenue of $1.21 billion for the quarter, compared to the consensus estimate of $1.26 billion. Sonoco Products had a net margin of 4.37% and a return on equity of 17.66%. The firm’s revenue was down 3.4% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.68 EPS. On average, equities research analysts predict that Sonoco Products will post $2.72 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which was paid on Friday, September 9th. Investors of record on Friday, August 12th were given a dividend of $0.37 per share. The ex-dividend date was Wednesday, August 10th. This represents a $1.48 dividend on an annualized basis and a yield of 2.88%. Sonoco Products’s payout ratio is 69.81%.
In related news, CEO Mancil J. Sanders sold 16,254 shares of the stock in a transaction that occurred on Friday, August 26th. The shares were sold at an average price of $52.00, for a total transaction of $845,208.00. Following the completion of the sale, the chief executive officer now owns 187,296 shares of the company’s stock, valued at $9,739,392. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director John E. Linville sold 33,746 shares of the stock in a transaction that occurred on Friday, July 22nd. The shares were sold at an average price of $51.54, for a total transaction of $1,739,268.84. Following 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.
A number of large investors have recently bought and sold shares of SON. Norges Bank purchased a new stake in Sonoco Products during the fourth quarter worth approximately $34,493,000. Glenmede Trust Co. NA boosted its stake in Sonoco Products by 31.2% in the first quarter. Glenmede Trust Co. NA now owns 10,532 shares of the company’s stock worth $511,000 after buying an additional 2,507 shares during the last quarter. Ngam Advisors L.P. boosted its stake in Sonoco Products by 316.1% in the first quarter. Ngam Advisors L.P. now owns 177,820 shares of the company’s stock worth $8,637,000 after buying an additional 135,090 shares during the last quarter. Teachers Advisors Inc. boosted its stake in Sonoco Products by 18.4% in the first quarter. Teachers Advisors Inc. now owns 97,797 shares of the company’s stock worth $4,750,000 after buying an additional 15,204 shares during the last quarter. Finally, BlackRock Inc. boosted its stake in Sonoco Products by 98.1% in the first quarter. BlackRock Inc. now owns 246,432 shares of the company’s stock worth $11,969,000 after buying an additional 122,054 shares during the last quarter. 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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