Avon Products, Inc. (AVP) Downgraded to Strong Sell at Zacks Investment Research
Avon Products, Inc. (NYSE:AVP) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a report released on Wednesday.
According to Zacks, “Avon has underperformed the broader industry in the last three months largely due to its dismal surprise history. Notably, the company delivered dismal second-quarter 2017 results, lagging top-line and bottom-line estimates for four straight quarters now. Results for the quarter were mainly impacted by strong comparisons with the prior-year quarter. Based on the dismal performance, the company now expects constant-dollar revenue growth for 2017 to be at the low-end of its previous guidance range of low-single digits growth. This caused a downtrend in estimates. However, we remain impressed with the company’s progress with its Transformation Plan, which is on track to deliver cost savings goals of $230 million for 2017. With significant progress on enhancing cost structure and improving financial flexibility, the company is now keen on investing in growth by implementing strategies to aid in strengthening Avon while driving profitable growth.”
Other equities analysts also recently issued research reports about the company. Stifel Nicolaus reiterated a “hold” rating and set a $4.00 price objective (down previously from $4.50) on shares of Avon Products in a research report on Wednesday. UBS AG cut their price objective on Avon Products from $3.50 to $2.75 and set a “sell” rating on the stock in a report on Friday, August 4th. DA Davidson began coverage on Avon Products in a report on Thursday, July 6th. They issued a “neutral” rating and a $4.25 price objective on the stock. ValuEngine downgraded Avon Products from a “hold” rating to a “sell” rating in a report on Friday, June 2nd. Finally, Deutsche Bank AG reissued a “hold” rating and set a $3.00 target price (down from $5.00) on shares of Avon Products in a research note on Friday, August 4th. Three analysts have rated the stock with a sell rating, five have assigned a hold rating and one has issued a buy rating to the company. Avon Products presently has a consensus rating of “Hold” and an average price target of $4.44.
Avon Products (AVP) traded down 2.38% on Wednesday, reaching $2.87. The company had a trading volume of 1,113,386 shares. The stock’s market capitalization is $1.26 billion. The stock’s 50 day moving average is $3.61 and its 200-day moving average is $4.24. Avon Products has a 1-year low of $2.84 and a 1-year high of $6.96.
Avon Products (NYSE:AVP) last issued its quarterly earnings results on Thursday, August 3rd. The company reported ($0.03) earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.07 by $0.10. The firm had revenue of $1.40 billion during the quarter, compared to analyst estimates of $1.44 billion. Avon Products had a negative return on equity of 3.68% and a negative net margin of 0.99%. The business’s revenue was down 2.7% on a year-over-year basis. During the same period in the prior year, the firm earned $0.07 earnings per share. On average, equities analysts predict that Avon Products will post $0.17 EPS for the current fiscal year.
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Several hedge funds and other institutional investors have recently modified their holdings of AVP. Two Sigma Securities LLC raised its position in Avon Products by 1.9% in the first quarter. Two Sigma Securities LLC now owns 22,824 shares of the company’s stock valued at $100,000 after buying an additional 420 shares during the period. Acrospire Investment Management LLC increased its position in Avon Products by 33.7% in the first quarter. Acrospire Investment Management LLC now owns 24,036 shares of the company’s stock worth $106,000 after buying an additional 6,058 shares during the period. Point View Wealth Management Inc. increased its position in Avon Products by 4.0% in the first quarter. Point View Wealth Management Inc. now owns 25,485 shares of the company’s stock worth $112,000 after buying an additional 981 shares during the period. Oakbrook Investments LLC increased its position in Avon Products by 2.5% in the second quarter. Oakbrook Investments LLC now owns 32,500 shares of the company’s stock worth $124,000 after buying an additional 800 shares during the period. Finally, Parametrica Management Ltd increased its position in Avon Products by 119.7% in the first quarter. Parametrica Management Ltd now owns 29,338 shares of the company’s stock worth $129,000 after buying an additional 15,985 shares during the period. 87.24% of the stock is currently owned by institutional investors and hedge funds.
About Avon Products
Avon Products, Inc is a manufacturer and marketer of beauty and related products. The Company’s segments include Europe, Middle East & Africa; South Latin America; North Latin America, and Asia Pacific. Its product categories are Beauty, and Fashion and Home. Beauty consists of skincare (which includes personal care), fragrance and color (cosmetics).
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